An Overview of the Capital Gains Tax in Indonesia
The capital gains tax in Indonesia is the taxes that taxed at normal rates on the ordinary income that is derived by an individual. The gains taxes are taxed at different percentages.
How Capital Gains Taxes in Indonesia Are Calculated
The calculations for gains taxes would defer based on the category being taxed:
- Gains on listed shares are taxed at 0/1%. This is the final tax of the transaction value.
- Gains on disposal buildings or land are taxed at 2.5%. This is the final tax of the transaction value.
- Gains that arise from any sale of Indonesia assets made by foreigners are taxed at 5% of the gross proceeds.
- This will be applicable unless another tax treaty reduces the rates.
In terms of property, the capital gains tax rates will be calculated based on the following assumptions:
- The owner of the property has had it for 10 years.
- The property is either directly or jointly owned by a husband and wife.
- The property is not the principal or sole residence.
- The property is the only capital gains source in Indonesia.
- The property is worth US$250,000 at the time of purchase.
- The property appreciated in value at 100% over the last 10 years since the sale.
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