Nomad Watch
ID

Skilled foreign resident — Indonesian-source income only

Active Exemption

Indonesia · special tax regime

Rate —
Duration 4 years
Prior non-residency — required before applying
Standard top income tax 35.0% Indonesia, without the regime

Overview

Regime
Skilled foreign resident — Indonesian-source income only
Country
Indonesia
Type
Exemption
Status
Active
Effective from
Nov 2, 2020
Expires on
—

Details

Summary
Qualifying foreign tax residents may be taxed only on Indonesian-sourced income (including certain offshore-paid Indonesian-source amounts) for their first four years of residency instead of worldwide income.
Eligibility
Foreign individual who has become an Indonesian domestic tax subject and meets skill requirements under the Omnibus Law / Income Tax Law.
Benefits
Indonesian-source-only taxation for up to four years after becoming tax resident; may not apply where treaty relief is used on foreign income.
Requirements
Election and skill criteria per implementing regulations; not linked to any specific immigration visa category.
Limitations
Unavailable once the four-year window ends; treaty sourcing rules may override; eligibility for pure remote workers paid abroad is uncertain in practice.
Income types covered
Indonesian-sourced employment, business and investment income
Duration details
First four years of tax residency

Other regimes in Indonesia

Other regimes in Indonesia
NameTypeRate
Tax Holiday for Pioneer Industries Exemption —

View source PwC Indonesia 2026

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