Number of High-Earning Taxpayers Paying 35 Per Cent Tax Rate Rises by 5.1 Per Cent

JAKARTA — The number of high-income taxpayers paying tax at Indonesia’s highest rate has increased in 2025. The Directorate General of Taxes (DJP) recorded a rise in the number of taxpayers subject to the 35 per cent personal income tax (PPh) rate.

Director General of Taxes Bimo Wijayanto said that based on 2025 data, the number of taxpayers paying the highest progressive rate increased by approximately 5.1 per cent compared to the previous year.

“Taxpayers making payments at the highest rate based on last year’s data increased by approximately 5.1 per cent compared to the previous year,” Bimo said at a press conference at the Finance Ministry office in Jakarta on Wednesday (11 March 2026).

The increase in the number of taxpayers in the highest tax bracket was not coincidental, he noted.

“This is the result of improved service and oversight of taxpayers in the highest tax bracket at 35 per cent,” he said.

For context, the 35 per cent personal income tax rate is the highest rate in Indonesia’s individual income tax system. The provision is set out in the Tax Harmonisation Law (UU HPP).

The rate applies to individual taxpayers with taxable income exceeding Rp 5 billion per year. Under the progressive system, the 35 per cent rate applies only to income portions exceeding Rp 5 billion.

Overall tax revenue growth reached 30.4 per cent annually, equivalent to 10.4 per cent of the 2026 budget’s tax revenue target.

The surge in tax collection was primarily driven by increased performance in value-added tax (PPN) and luxury goods sales tax (PPnBM) amid high economic transaction activity.

In nominal terms, receipts from PPN and PPnBM reached Rp 85.9 trillion, surging 97.4 per cent compared to the same period in the previous year.

Additionally, corporate income tax (PPh) also recorded substantial growth of 44 per cent.

“What is particularly notable is PPN and PPnBM growth reaching 97.4 per cent,” said an official at an “Our Budget” press conference in Jakarta on Wednesday (11 March 2026).

“PPN and PPnBM are collected when transactions occur,” he added.