Number of Indonesia's Super-Wealthy Taxpayers Paying 35% Tax Rate Continues to Grow

Jakarta — The Directorate General of Taxes (DJP) of the Ministry of Finance has recorded an increase in individual taxpayers paying the highest personal income tax rate of 35% in 2025.

For context, individual taxpayers paying the 35% personal income tax rate represent the highest taxable income bracket, earning above IDR 5 billion annually.

“Taxpayers making payments at the highest rate, based on last year’s data, increased by approximately 5.1%,” said Director General of Taxes Bimo Wijayanto at the Ministry of Finance headquarters in Jakarta on Thursday (12 March 2025).

Wijayanto attributed the increase in wealthy individuals becoming tax compliant to enhanced supervision and improved taxpayer services continuously strengthened by the DJP.

“Compared to the previous year, this represents the result of enhanced service provision and oversight of the top-tier 35% taxpayer group,” Wijayanto stated firmly.

For context, the 35% top income tax rate is regulated under Law Number 7 of 2021 on Tax Harmonisation (UU HPP).

Prior to the Tax Harmonisation Law, the highest income tax bracket was capped at 30%, applying only to that income tier. Under the UU HPP, income tax rates are now divided into five brackets: 5% for taxable income of IDR 0-60 million; 15% for IDR 60 million to IDR 250 million; 25% for IDR 250 million to IDR 500 million; 30% for IDR 500 million to IDR 5 billion; and 35% for income above IDR 5 billion.

In 2024, the number of taxpayers paying the 35% rate had actually grown more rapidly, increasing by 10% compared to 2023.