Few exemptions are incentives Under the Tax Law, residents of Indonesia are taxed on their worldwide income.
Non residents are subject to tax on income that is received or accrued from Indonesia.
A Tax Year is generally from 1 January to 31 December but alternative year ends can be adopted with the approval of the Director General of Taxation. Tax losses can be carried forward for five years. No tax loss carry back allowed. The cost of providing Benefits in Kind to employees is not deductible to an employer. This covers housing, wages for domestic servants, children's education, club fees, home leave, spouse's car etc.