Expense Reimbursements in Indonesia

TABLE OF CONTENTS

Types of Reimbursable ExpensesCommon reimbursable expenses include:
Tax Implications
Reimbursements with valid receipts and proper documentation are generally not considered taxable income

To submit an expense reimbursement request, please refer to How can I submit expenses?

Types of Reimbursable Expenses

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

Tax Implications

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