Income Tax Rules for Freelance Workers in Indonesia

JAKARTA, December 8, 2025 – Individual taxpayers who carry out freelance work may calculate net income using the Net Income Calculation Norm (NPPN). The rule applies to freelancers whose annual gross income is below IDR 4.8 billion.

The provision is stipulated in Article 14 paragraph (2) of the Income Tax Law and Director‑General Regulation No. 17/PJ/2015. To use NPPN, taxpayers must meet three conditions: gross income under IDR 4.8 billion, maintain proper records, and notify the tax authority of NPPN use within three months after the tax year begins.

NPPN allows freelancers to compute tax liability with a fixed percentage based on their profession and region, simplifying compliance and reducing administrative effort.