How much PPh gets withheld? The full rate table for freelancers & small businesses
There is no single Indonesian withholding rate — it depends on the income type and who the payee is. When a corporate client pays an individual freelancer, it withholds PPh 21 (non-employee): a 50% deemed base × the Article 17 schedule ⇒ an effective 2.5% in the first bracket (PMK 168/2023). When the payee is a company, it withholds PPh 23: 2% on services and rent, 15% on royalties. Land/building rent is PPh 4(2) Final at 10%. Without an NPWP the rate rises: PPh 21 ×120%, PPh 23 ×200%. Separately, individual UMKM self-deposit the 0.5% final rate on turnover above Rp500 million/year — now permanent under PP 20/2026. The payer must issue a bukti potong via e-Bupot (Coretax), and withheld PPh 21/23 is creditable on the annual return.
Withholding works from the payer side: a client with withholding-agent status deducts part of your invoice, remits it to the state treasury in your name, and gives you a bukti potong (withholding certificate). The rates differ — PPh 21 for non-employee individuals, PPh 23 for corporate vendors, PPh 4(2) Final for land/building rent — and several rates change again when the payee has no NPWP.
By the Tagihin team · Updated 10 Jun 2026
⚠️ Disclaimer: this article is for general understanding, not case-specific tax advice. Rates and conditions can carry exceptions or change under new regulations. Verify with DJP (pajak.go.id, Kring Pajak 1500200) or your own accountant/tax adviser before relying on it.
Withholding-rate table (quick-scan)
This table uses the most common case for freelancers and small businesses: the payer is a company (PT/CV/agency) with withholding-agent status. PPh is withheld on the service value excluding PPN (the DPP), not on the PPN-inclusive total.
| Income type | Withholding rate | Payee condition | PPh article & basis |
|---|---|---|---|
| Service fee to an individual freelancer Non-employee — design, writing, photography, consulting, etc. |
Effective 2.5% 50% deemed base × Article 17 (first bracket 5%) |
Individual with an NPWP (or a NIK already activated as NPWP) | PPh 21 — PMK 168/2023 |
| Service fee to an individual without an NPWP | Effective 3% Normal rate ×120% |
Individual with no NPWP | PPh 21 — Art. 21(5a) Income Tax Law |
| Service fee to a corporate vendor Technical, management, consulting, and listed "other services" (PMK 141/2015) |
2% | Resident corporate payee (PT/CV) Verify with DJP or your accountant |
PPh 23 — Art. 23 Income Tax Law |
| Rental of assets other than land/buildings Vehicles, tools, production equipment |
2% | Resident corporate payee | PPh 23 — Art. 23 Income Tax Law |
| Royalties Licences over works, copyright, trademarks, patents |
15% | Resident payee — corporate or individual Verify with DJP or your accountant |
PPh 23 — Art. 23 Income Tax Law |
| Services/rent/royalties — corporate payee without an NPWP | ×200% (services become 4%, royalties 30%) | Corporate payee with no NPWP | PPh 23 — Art. 23(1a) Income Tax Law |
| Rent of land and/or buildings Shophouses, offices, studios, warehouses |
10% Final — not creditable |
Individual or corporate landlord | PPh 4(2) Final — PP 34/2017 |
| UMKM business turnover (individuals & single-owner companies) Not a withholding — self-deposited monthly |
0,5% Turnover ≤ Rp4.8bn/yr; first Rp500m tax-free |
Individuals outside the professional-services carve-out; a corporate client withholds this 0.5% if you present a PP 55 Surat Keterangan | PPh Final UMKM — PP 55/2022 jo. PP 20/2026 |
How to read it: (1) find the income type being paid → (2) check whether the payee is an individual or a company, with or without an NPWP → (3) apply the rate and PPh article on that row. The base is always the service value excluding PPN. Want it computed for you? Use the free PPh calculator.
What is PPh withholding?
PPh withholding is the mechanism where the payer deducts tax from the amount due and remits it to the state treasury on the recipient’s behalf. For PPh 21 and PPh 23, the deduction is a prepayment: the recipient credits it on the annual return (SPT Tahunan), reducing the tax owed by the amount already withheld. For final taxes (PPh 4(2) on land/building rent, the 0.5% final UMKM rate), the deduction settles the liability outright — there is nothing to credit.
Who withholds, and what they must do
The withholder is a payer with withholding-agent status — generally a business entity (PT, CV, foundation, government agency). It has three duties: withhold at the correct rate, deposit the withheld PPh by the 15th of the following month, and report it on the SPT Masa PPh Unifikasi within 20 days after the tax period ends (PMK 81/2024). The payer must also issue the recipient a bukti potong through e-Bupot on DJP’s Coretax.
A common misunderstanding: individuals generally do not withhold from each other. If your client is a private person (not an entity and not an appointed withholding agent), nothing is usually withheld from your invoice — your tax runs through self-deposits instead (the 0.5% final UMKM rate or PPh 25 instalments/annual filing).
PPh 21 non-employee: where the 2.5% comes from
PMK 168/2023 governs PPh 21 for "bukan pegawai" — individual freelancers paid by an entity outside an employment relationship. The formula has two steps: the taxable base (DPP) = 50% × the gross fee, and that base is then run through the progressive Article 17 schedule. As long as your cumulative DPP with that payer sits in the first bracket, the rate is 5% — so the effective deduction is 50% × 5% = 2.5% of gross.
The Article 17 schedule for individuals (Income Tax Law as amended by the HPP Law):
| Taxable-income / cumulative-DPP bracket | Rate | Effective on gross (×50%) |
|---|---|---|
| Up to Rp60,000,000 | 5% | 2,5% |
| > Rp60m to Rp250m | 15% | 7,5% |
| > Rp250m to Rp500m | 25% | 12,5% |
| > Rp500m to Rp5bn | 30% | 15% |
| > Rp5bn | 35% | 17,5% |
Worked example. PT Klien pays a Rp10,000,000 design fee to a freelancer with an NPWP. DPP = 50% × Rp10,000,000 = Rp5,000,000. PPh 21 = 5% × Rp5,000,000 = Rp250,000 (effective 2.5%). The freelancer receives Rp9,750,000 plus a Rp250,000 bukti potong, creditable on the annual return.
Note for recurring engagements: the DPP accumulates over the year per payer. Once your cumulative DPP passes Rp60 million (roughly Rp120 million gross from one client), the excess is withheld in the 15% bracket — an effective 7.5%. That is the rule working as designed, not a miscalculation.
PPh 23: services & rent 2%, royalties 15%
When the payee is a resident company (for example, you invoice through a CV or PT), the corporate payer withholds PPh 23: 2% on service fees and on rent of assets other than land/buildings, and 15% on royalties, dividends, interest, and prizes. The "other services" list subject to 2% is set by PMK 141/2015 — most creative and technical freelance services are on it, but check when in doubt.
- 2% services example: PT Klien pays your CV Rp20,000,000 for a website build. PPh 23 = 2% × Rp20,000,000 = Rp400,000; Rp19,600,000 is transferred, plus a bukti potong.
- 15% royalty example: an Rp8,000,000 photo-licensing fee → PPh 23 = 15% × Rp8,000,000 = Rp1,200,000; Rp6,800,000 is received.
- No NPWP ×200%: the normal 2% on services becomes 4% — in the website example the deduction doubles from Rp400,000 to Rp800,000.
PPh 4(2) Final: land/building rent at 10%
Rent of land and/or buildings — shophouses, offices, studios, warehouses — carries PPh 4(2) Final at 10% of the gross rent (PP 34/2017), whoever the landlord is. Example: a studio lease at Rp60,000,000/year → PPh 4(2) = 10% × Rp60,000,000 = Rp6,000,000. Because it is final, the deduction is not credited on the annual return and the rental income is not pooled back into taxable income — the withholding settles it.
No NPWP: rates rise ×120% or ×200%
The Income Tax Law raises the rate for payees without an NPWP: PPh 21 is withheld at 120% of the normal rate (effective 2.5% → 3%), PPh 23 at 200% (services 2% → 4%, royalties 15% → 30%). Since the Coretax era, the 16-digit NIK doubles as the NPWP for individuals — so for most freelancers this surcharge is easy to avoid: make sure your NIK/NPWP is active and printed on your invoices so clients withhold at the normal rate.
The 0.5% final UMKM rate — not a withholding, but essential
Beyond client-side withholding, individual freelancers and UMKM with turnover up to Rp4.8 billion/year can use the 0.5% final UMKM rate on turnover (PP 55/2022). Two pieces of good news: the first Rp500 million of annual turnover is tax-free, and under PP 20/2026 the rate is now permanent for individuals and single-owner companies — the old 7-year limit is gone. You self-deposit it by the 15th of the following month (PMK 81/2024).
Example: Rp800,000,000 annual turnover → only Rp300,000,000 is taxable (above the Rp500 million free band) → final PPh = 0.5% × Rp300,000,000 = Rp1,500,000 for the year. Run your own numbers in the final-UMKM calculator.
- How it meets withholding: if you use the 0.5% final regime and hold a PP 55 Surat Keterangan from DJP, a corporate client withholds that final 0.5% (instead of PPh 23 at 2% / PPh 21) when paying you. Present the certificate before the invoice is paid.
- Key exclusion: income from professional independent work — lawyers, accountants, architects, consultants, doctors, notaries, and the like — cannot use the 0.5% rate. They use NPPN (the deemed-profit norm, typically 50% for professionals in provincial capitals) and then the Article 17 schedule.
Freelancers approaching Rp4.8 billion turnover should also look at PPN and PKP status — see the freelancer PPN guide.
Common mistakes
- Applying 2% to everything — 2% is PPh 23 for corporate payees. Individual freelancers are withheld PPh 21 at an effective 2.5%, royalties at 15%, land/building rent at a final 10%.
- Withholding on the PPN-inclusive total — the base is the service value excluding PPN (the DPP), not the total after 11% PPN.
- Forgetting the no-NPWP surcharge — PPh 21 ×120%, PPh 23 ×200%. Put your NPWP/NIK on the invoice so the higher rate never applies.
- Trying to credit final PPh — PPh 4(2) on land/building rent and the 0.5% final UMKM rate are final; only PPh 21/23 are creditable on the annual return.
- Not chasing the bukti potong — without the e-Bupot certificate, claiming your PPh 21/23 credit is painful. Ask for it every time you are withheld.
- Professionals using the 0.5% rate — tenaga ahli (lawyers, accountants, architects, consultants, doctors, notaries) are excluded from the final UMKM regime; their path is NPPN + the Article 17 schedule.
Your invoice got withheld — now what?
When a corporate client withholds PPh from your invoice, that money is not lost: for PPh 21/23 it is tax prepaid in your name, and you still file your annual return as usual — being withheld does not mean your taxes are done.
- Check the rate — match it against the table above (or the PPh calculator) before the invoice is paid, so you are not over-withheld.
- Ask for the e-Bupot certificate — the payer must issue it through Coretax. Collect them all year; how to read one is covered in the bukti potong guide.
- Credit it on the annual return — total the year’s withheld PPh 21/23 and credit it on your individual annual return (filing deadline 31 March). Final withholdings (4(2), the 0.5% UMKM rate) are not credited.
- Over-withholding is recoverable — if the total withheld exceeds your tax due, your return shows an overpayment and the difference can be refunded or carried over.
If you are the one withholding (say your CV pays a vendor), remember to deposit by the 15th and file the SPT Masa PPh Unifikasi within 20 days — details in the PPh Unifikasi filing guide.
Auto-calculate PPh on every invoice with Tagihin
Keeping 2%, 2.5%, 10%, and 15% straight — plus the ×120%/×200% rules — is easy to fumble. Tagihin computes the PPh line on your invoice automatically from the income type and your customer’s status, shows the exact net amount to transfer (with an exact-amount QRIS QR), and prepares a draft bukti potong as a preview — official issuance still happens through e-Bupot (Coretax) by the withholding party.
- Generate a free draft bukti potong: draft bukti potong generator
- Invoicing software with automatic PPh & PPN: invoicing-app guide
Invoice with the PPh already computed right
The Freelancer plan at Rp79,000/month includes PPh calculation and draft bukti potong — start free, no card required.
Tagihin is a document-creation tool — not a tax adviser; it does not file your taxes and does not issue Faktur Pajak or official bukti potong (both exist only on DJP’s Coretax: e-Faktur and e-Bupot).
Sources / Sources
- Primary (DJP & regulations):
- Directorate General of Taxes — pajak.go.id (PPh Articles 21, 23, 4(2))
- JDIH Kemenkeu — PMK 168/2023 (PPh 21 non-employees), PMK 141/2015 (PPh 23 "other services" list), PMK 81/2024 (deposit & filing deadlines)
- PP 55/2022 jo. PP 20/2026 — the 0.5% final UMKM rate, the Rp500 million free band, made permanent
- PP 34/2017 — 10% final PPh 4(2) on land/building rent
- Income Tax Law as amended by the HPP Law — the Article 17 schedule, Articles 21(5a) & 23(1a) (no-NPWP surcharges)
- Secondary (tax/accounting references):
This document is for general understanding and is not case-specific tax advice. Questions? Contact support@tagihin.id.