Income Tax
Income taxation is subject to Federal government regulations defined by the economic realities of that particular area.
Citizen
People of Karimun who are citizens of the Federation of Karimun that have worked more than 3 months and have guaranteed income must pay tax.
Single Income Earner Tax
| Band |
Tax Rate |
Yearly Single Income Band (KPT) |
Details
|
| Tax Free |
0% |
Under 250,000 |
|
| Band I |
10% |
250,001-350,000 |
250KPT per children, maximum three children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band II |
15% |
350,001-450,000 |
250KPT per children, maximum three children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band III |
20% |
450,001-600,000 |
300KPT per children, maximum four children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band IV |
25% |
Above 600,001 |
450KPT per children, maximum five children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
Plural Income Earners Tax
| Band |
Tax Rate |
Yearly Plural Income Band (KPT) |
Details
|
| Tax Free |
0% |
Under 250,000 |
|
| Band I |
15% |
250,001-350,000 |
250KPT per children, maximum three children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band II |
20% |
350,001-450,000 |
250KPT per children, maximum three children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band III |
25% |
450,001-600,000 |
300KPT per children, maximum four children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
| Band IV |
30% |
Above 600,001 |
450KPT per children, maximum five children that are taxable until he/she capable to have a sustainable, reliable, and stable income
|
Resident
People of foreign nations who residing in the Federation of Karimun who managed to acculumate wealth within the state or have worked more than three months and have guaranteed income have to pay tax.
| Band |
Tax Rate |
Yearly Resident Income Band (KPT) |
Details
|
| Tax Free |
0% |
Under 250,000 |
|
| Band I |
10% |
250,001-450,000 |
Additional 1,500KPT for non-BEZ residents
|
| Band II |
20% |
Above 450,000 |
Additional 1,500KPT for non-BEZ residents
|
Corporate Income Tax
| Categorization |
Tax Rate |
Details
|
| Petroleum and Mining |
20% |
Petroleum (Oil, Natural Gas, or others) and Mining (Nickel, Tin, or others) are subjected into a flat tax rate of 20%, this not included Environmental Tax which depends on the states or cities they are operating, except construction related materials, they are excluded from being taxed
|
| Agriculture, Forestry, and Fishery |
10% for majority foreign owned
5% for majority domestic owned |
Agriculture (Rice, banana, coffee, tea, and others), Forestry (Plywood and others), Fisheries (Lobsters, prawn, seaweed, and others), and related are subjected into a tax rate of 10% for majority foreign owned, 5% for majority domestic owned, this is not included Environmental Tax which depends on the states or cities they are operating
|
| Manufacturing |
20% for majority foreign owned
15% for majority domestic owned |
This is not included Environmental Tax which depends on the states or cities they are operating
|
| Construction and Infrastructure |
10% for construction
5% for construction |
Under the Job Creation Omnibus Law and the Economic Development Plan 2021, all construction and infrastructure related companies don't need to pay environmental tax, they only need to implement safe and eco friendly tehnicques, green development, and a good independent supervision body
|
| Electricity, Water, Gas, and Waste |
5% |
Electricity, Water, Gas, and Waste services are subjected to a flat tax rate of 5%
|
| Retail |
5% |
This is not included Environmental Tax which depends on the states or cities they are operating
|
