What is the 2022 Corporate Income Tax Rate?

Income Tax (PPh) is a tax imposed on Tax Subjects on Income received or earned in the tax year. Tax subjects based on Article 2 of the Income Tax Law (UU PPh) include individuals, undivided inheritance as a unit to replace those entitled to, entities and permanent establishments.

Income in question is any additional economic capability received or obtained by a Taxpayer, both from Indonesia and from outside Indonesia, which can be used for consumption or to increase the wealth of the Taxpayer concerned, in any name and in any form in accordance with Article PPh Law. 4.

In calculating income tax, especially for corporate taxpayers, the basis for calculating the amount of income tax payable is called taxable income that can be reduced by costs as stipulated in Article 6 of the Income Tax Law. As well as costs that cannot be deducted as stipulated in Article 9 of the Income Tax Law. The following is a table of Corporate Income Tax rates and their changes.

Corporate Income Tax Rates and Its Changes

NoLegal Basis for Corporate Income TaxYear ApplicableRates for Corporate Income TaxExplanation
1Income Tax Law Number 36 of 20082010 – 201925% 
2Law No. 2 of 20202020 – 202122% 
3Law Number 7 of 2021202222%The previous 2022 tax rate of 20 percent (Law number 2 of 2020) does not apply and has been changed back to 22 percent (Law number 7 of 2021)
Special Terms
4Income Tax Law Number 36 Year 2008 Article 31E2008 – nowDomestic Corporate Taxpayers can get a tariff reduction facility of 50% from the tariff in Law no. 36 of 2008 article 17 paragraph (2) letter bEntities that have a gross turnover of up to Rp. 50 billion which is imposed on the Taxable Income of the share of gross turnover of up to Rp. 4.8 billion.
5Income Tax Law Number 35 of 20082010 – 2019Get a 5% lower rate1. in the form of a public company 2. with the total number of paid-up shares traded on the stock exchange in Indonesia at least 40%; and 3. meet certain requirements
6Law No. 2 of 20202020 – 2021Get a 3% lower rate
7Law Number 7 of 20212022Get a 3% lower rate

The calculation of PPh for the 2021 fiscal year uses the applicable rate for the 2021 fiscal year, which is 22%. Thus, the calculation and payment of underpaid income tax reported in the 2021 Annual SPT (PPh Article 29) uses a rate of 22%.

Intermediate Expert Analyst of the Directorate General of Budget for state revenue Arief Masdi said that there are two main objectives of the government in preparing tax reforms for 2021-2024, namely

  1. Encouraging national economic growth through targeted incentives and reducing business burdens.
  2. Optimizing state revenues by adding new tax objects and subjects as well as increasing taxpayer compliance and improving governance and administration.

The realization of PPh in 2020 reached Rp594 trillion or a 23.1% contraction compared to the realization in 2019 with only 88.6% of the 2020 target.

This condition comes from Corporate Income Tax which has contracted quite deeply due to several factors, namely the slowdown in the profitability of business entities in 2019 as the basis for calculating the 2020 tax and tax incentives in the form of installment discounts of 30% to 50%.

The Ministry of Finance stated that Law Number 7 of 2021 stipulates a corporate income tax rate of 22% for the fiscal year 2022 and beyond, in line with the global tax trend which has begun to increase income from PPh while maintaining the investment climate. This rate is lower than the average corporate income tax rate for ASEAN countries (22.17%), OECD countries (22.81%), American countries (27.16%), and G-20 countries. (24.17%).


  1. https://www.kemenkeu.go.id/publikasi/article-dan-opini/menakar-penerimaan-pajak-di-tahun-pandemi/
  2. https://www.kemenkeu.go.id/publikasi/berita/ini-aturan-baru-pph-dan-ppn-dalam-ruu-harmonization-peraturan-perpajakan/