TaxSavvyID

Entertainment costs and deductions

Biaya entertain bisa jadi biaya pengurang pajak?

The situation

Entertainment and promotion costs are deductible only if supported by a nominative list showing who was entertained and why.

The law

  • Art 17, Law 7/1983 on Income Tax (PPh Law), as last amended by Law 6/2023: Individual rates: 5 percent up to IDR 60 million, 15 percent to IDR 250 million, 25 percent to IDR 500 million, 30 percent to IDR 5 billion, 35 percent above; company rate 22 percent
  • Art 28, Law 6/1983 on General Provisions and Tax Procedures (KUP Law), as last amended by Law 6/2023: Businesses and companies must keep books in Indonesia, in Indonesian and in rupiah unless permitted otherwise; small individuals may keep records instead

What it means for you

Without the list, the DJP will add them back to taxable income. Keep receipts, names, positions and business purpose. Example: IDR 100 million entertainment without a list adds IDR 22 million tax.

What to do

  1. Keep receipts and names.
  2. Prepare a nominative list.
  3. Attach it to the return.
  4. Add back costs without support.

Bribes and gratuities are never deductible; PP 20/2026 added this rule.

We can do this for youCorporate annual income tax return (SPT Tahunan PPh Badan): fiscal adjustments, Art 31E, instalments and financial statements: IDR 7.500.000

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