Banking, pensions and tax in Indonesia
Indonesia taxes resident retirees' foreign pensions and other worldwide income at 5% to 35%; US Social Security can be paid there by direct deposit, while the UK State Pension is frozen.
How your pension reaches a Indonesia bank, what Indonesia taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- Up to 35% Foreign pensions are taxed. PwC Tax Summaries; IRS; GOV.UK. Checked Oct 8, 2026.
- Top rate, local income
- 35% Over IDR 5 billion. PwC Tax Summaries; IRS; GOV.UK. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Frozen GOV.UK. Checked Oct 8, 2026.
- Canada OAS
- No agreement Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Indonesia
United States
Social Security
Yes. Social Security can be paid straight into a bank in Indonesia by international direct deposit: Indonesia is on SSA's list of direct deposit countries, through a multi-country bank contract.
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid to you in Indonesia, but Indonesia is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
GOV.UK. Checked Oct 8, 2026.
Canada
Old Age Security
Paid while you live outside Canada if you lived in Canada for at least 20 years after age 18. Canada has no social security agreement with Indonesia, so time in Indonesia does not count toward OAS.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Indonesia.
How Indonesia taxes you
Indonesia taxes residents on their worldwide income, which double taxation agreements may reduce. You are tax resident if you live in Indonesia, are present for more than 183 days in any 12-month period, or are present during a tax year and intend to live there. Under the Omnibus Law, a foreigner who becomes tax resident can be taxed only on Indonesian-sourced income for the first four years, but only if they meet certain skill requirements. Indonesia has tax treaties with the US and the UK. Taxable income is taxed at 5% to 35%; interest on Indonesian bank deposits bears a 20% final tax and dividends from Indonesian companies 10%. The income tax scale:
| Taxable income | Rate |
|---|---|
| Up to IDR 60 million a year | 5% |
| IDR 60 million to 250 million | 15% |
| IDR 250 million to 500 million | 25% |
| IDR 500 million to 5 billion | 30% |
| Over IDR 5 billion | 35% |
PwC Tax Summaries; IRS; GOV.UK. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; the US has an income tax treaty with Indonesia, which can decide which country taxes some income. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Indonesia?
Yes. Social Security can be paid straight into a bank in Indonesia by international direct deposit: Indonesia is on SSA's list of direct deposit countries, through a multi-country bank contract.
Will my UK State Pension go up each year in Indonesia?
It can be paid to you in Indonesia, but Indonesia is not on GOV.UK's list of countries where the State Pension goes up every year, so it stays at the rate you first receive there.
Is my pension taxed in Indonesia?
Yes. Tax residents are taxed on worldwide income at 5% to 35%, and the four-year exemption for foreign income applies only to foreigners who meet skill requirements. A tax treaty with the country that pays the pension may reduce the tax. US citizens still file a US return.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can I get US Social Security paid in Indonesia?
Yes. Indonesia is on Social Security's list of international direct deposit countries, so payments can go straight into a bank in Indonesia.
Is the UK State Pension frozen in Indonesia?
Yes. Indonesia is not on GOV.UK's list of countries where the State Pension rises every year, so it stays at the rate you first receive there.
Is my foreign pension taxed in Indonesia?
Yes, once you are tax resident (more than 183 days in 12 months, or living there): residents are taxed on worldwide income at 5% to 35%, though a tax treaty may reduce this. The four-year exemption for foreign income covers only foreigners who meet skill requirements.
Does Canada have a social security agreement with Indonesia?
No. Time in Indonesia does not count toward Old Age Security; OAS is paid abroad if you lived in Canada for 20 years after age 18.
