Disaster Relief Donations Tax‑Deductible Up to Five Percent

JAKARTA, December 6 2025 – The Ministry of Finance confirmed that donations for national disaster relief are deductible from gross income when calculating income tax in Indonesia. The rule is stipulated in the Income Tax Law and Government Regulation No 93/2010 on disaster donations.

A national disaster is defined as an event that threatens the livelihood of the population and is officially declared by the central government. To qualify for deduction, taxpayers must meet four conditions under Finance Ministry Regulation No 76/2011: have net fiscal income, the donation must not cause a loss, provide valid documentation, and the recipient must hold a tax identification number. The deductible amount is capped at five percent of the taxpayer’s net fiscal income from the previous tax year.

Consequently, individuals and businesses that contribute can lower their tax liability, provided the limits and conditions are satisfied. The provision aims to encourage broader humanitarian support while maintaining fiscal compliance.