Foreign Taxpayer Sells Asset in Indonesia, PPh 26 Effective 5%

Foreign taxpayers (WPLN) who sell assets in Indonesia as of 14 October 2025 are subject to Income Tax Article 26, according to Minister of Finance Regulation No. 82/2009. The rule applies to WPLN that are not Permanent Establishments (BUT) and who transfer ownership of assets.

Tax is withheld at 20 % of an estimated net income set at 25 % of the sale price, resulting in an effective rate of 5 % of the transaction value. The provision covers luxury items such as jewelry, diamonds, gold, watches, cars, yachts and light aircraft, but sales not exceeding Rp10 million per transaction are exempt.

The buyer, designated as the tax withholding agent, must remit the tax and provide the seller with a withholding certificate. For WPLN from countries with a Double Tax Avoidance Agreement, withholding applies only when Indonesia has the right to tax, and the taxpayer must submit a Tax Domicile Certificate in line with PER‑25/PJ/2018.