Expense Reimbursements in Indonesia

Modified on: Mon, 17 Nov, 2025 at 5:07 PM

TABLE OF CONTENTS

Business-related travel and expenses (e.g., airfare for a work assignment, taxi for a client meeting) are generally not taxable for employees if:

Non-business or mixed-purpose expenses may be treated as taxable benefits in kind, requiring employer tax withholding.

Common reimbursable expenses include:

Transportation for business trip (taxi, ride-hailing services, airfare)
Lodging/accommodation during business travel
Meals during business trips
Office-related purchases (subject to prior approval)
Note: Only expenses that are directly related to company activities are eligible for reimbursement. Personal benefits or conveniences that solely serve the employee without any connection to work activities are not reimbursable.

Document Requirements

In addition to uploading receipts, employees should ensure that:

Receipts like invoices or anything that can proof the reimbursement.
Receipts clearly state the date, amount, vendor name, and description of goods/services.
In some cases, additional documentation may be required, such as approval emails or travel authorization letters.
The invoice should ideally reference the local Indonesian entity (e.g., PT. GLOBAL PRATAMA CAKRAWALA, Tax Number: 94.812.250.2 015.000).

Air/train/bus/taxi/rental cars: Reimbursable with receipts showing date, route, and purpose.
Taxi and ride-share (Grab, Gojek): Accepted for short-distance business trips or airport transfers.
Rental cars: Allowed for business trips; fuel receipts must be submitted separately.
Parking and toll fees: Reimbursable with receipts; do not include in mileage rate.
Traffic fines: Not reimbursable.

Per diems may be taxable if considered a benefit rather than reimbursement for actual business travel.
Under PMK 66/2023, allowances without supporting documentation risk being classified as BIK.

Reimbursements with valid receipts and proper documentation are generally not considered taxable income
However, if the reimbursement is given as a fixed allowance or lacks proper supporting documents, it may be subject to withholding tax (PPh 21)
Gross-up treatment may apply if mutually agreed upon by both parties, in the case that the reimbursement is considered taxable