Indonesian Corporate Tax Revenue Increased 2014-2023

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Adi Ahdiat 14/10/2024 12:10 WIB

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According to the Central Government Financial Report, the realization of corporate income tax (PPh Badan) receipts has shown a tendency to increase since 2014, reaching a new record high in 2023.

Corporate Income Tax Payment (Article 25/29) in Indonesia (2014-2023)

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Corporate Income Tax Payment (Article 25/29) in Indonesia (2014-2023)

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Corporate income tax (CIT) payments, specifically Article 25/29 Corporate Income Tax (PPh) in Indonesia, have significantly increased over the past decade.

This is evident from the Central Government Financial Report (LKPP) released by the Ministry of Finance.

In 2014, the Indonesian government only received approximately Rp 148 trillion in revenue from Article 25/29 Corporate Income Tax.

This trend then increased, reaching approximately Rp 252 trillion in 2019.

However, in 2020-2021, payments decreased due to the COVID-19 pandemic, which hampered business activities.

Corporate tax payments strengthened again starting in 2022 and continued to rise, exceeding Rp 406 trillion in 2023—the highest record in the last decade.

According to the LKPP, the increase in Article 25/29 Corporate Income Tax realization in 2022 was driven by economic recovery from the pandemic's impact and rising commodity prices.

Furthermore, in 2023, the realization continued to grow, influenced by the sustained performance of the domestic economy.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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