Villa Business Tax in Bali: PBJT, Income Tax, and Obligations Owners Miss

Villas are among the most common businesses in Bali, and among the most often misunderstood when it comes to tax. A villa has obligations at two levels: regional tax paid to the regency, and national tax administered by the Directorate General of Taxes.

1. Regional tax: PBJT on accommodation

Under Law 1/2022, the former hotel tax is now PBJT (tax on certain goods and services) for accommodation services, and villas rented as accommodation are included. The rate is up to 10%, set by each regency’s regulation. Guests bear the tax; the owner or operator collects it and pays it to the regency after registering with the local revenue office (Bapenda). Because accommodation is subject to regional tax, it is not subject to VAT.

2. Income tax depends on ownership

• Individuals or single-founder companies (PT Perorangan): with turnover up to IDR 4.8 billion, the 0.5% final tax on turnover may apply under PP 55/2022 as amended by PP 20/2026. Individuals pay no final tax on the first IDR 500 million of annual turnover.
• CV, partnerships, and regular PT companies, including PMA: since PP 20/2026 they no longer qualify for the 0.5% regime, apart from a transition period. Tax is calculated on profit from proper books, with a possible 50% rate reduction under Article 31E of the Income Tax Law. Clean bookkeeping becomes essential.
• Long-term lease of the whole villa: may be treated as land and building rental, subject to a 10% final tax on the rent rather than accommodation income. Confirm which applies to you.

3. Staff, property tax, and LKPM

Employee income tax (PPh 21) applies to housekeeping, gardeners, security, and managers, including daily workers. Land and buildings are subject to annual property tax (PBB-P2). PMA-owned villas must also file LKPM reports on OSS.

Commonly missed

• Turnover reported for PBJT differs from turnover in the income tax return, a classic SP2DK trigger.
• Booking platform payouts recorded net of commission instead of gross.
• Guest payments received into personal accounts.

Talk to a tax consultant in Bali

Agam Anand Konsultama helps villa owners in Badung, Gianyar, Tabanan, and Denpasar map their obligations, keep clean books, and keep regional and national tax aligned, in English or Indonesian. Free first consultation.