DJP Reports Rise in High-Income Taxpayers Paying 35 Percent Rate

The Directorate General of Taxes (DJP) recorded a significant increase in the number of high‑income taxpayers on 21 October 2025. These taxpayers are subject to the highest personal income tax rate of 35 percent.

The 35 percent rate has been in effect since the 2022 tax year under Law No 7/2021 on Taxation Harmonization, applying to taxable income above IDR 5 billion per year. According to Finance Ministry tax‑compliance expert Yon Arsal, the number of taxpayers in this bracket grew by almost 10 percent compared with 2023, boosting total tax receipts.

This growth expands the tax base among high earners and can increase state revenue. The government emphasizes that the 35 percent rate applies to active income such as salaries, while passive income is taxed under separate provisions.