Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Indonesia tax professional before filing.
Indonesia · Indonesia · Short-term rental taxes
Short-Term Rental Taxes in Indonesia
Rental income earned in Indonesia is subject to a final income tax of 10% of gross receipts for residents, withheld at source, with no deductions permitted under the final-tax regime.
The 30-Second Answer
- Final Income Tax (PPh Final) applies to rental income at 10% of gross rental receipts for Indonesian tax residents — no deductions are allowed under this regime.
- Non-residents (foreigners without Indonesian tax residency) pay a 20% final withholding tax on gross rental income, which may be reduced to 10% under an applicable Double Taxation Agreement (DTA).
- Platforms like Airbnb do not automatically withhold or remit Indonesian income tax on your behalf — hosts must self-report and pay via the Directorate General of Taxes (DJP) using SPT (annual tax return) filings.
- A 10% Hotel/Accommodation Tax (Pajak Hotel) is levied by local regional governments on guest payments for short-term stays and must be collected and remitted separately from income tax.
Deductions
What Can You Deduct in Indonesia?
Under the standard final-tax regime (PPh Final), no expense deductions are permitted — tax is calculated on gross rental income. Deductions are only relevant if you opt for the general net-income tax regime.
Deductions above apply only under the general net-income tax regime (non-final PPh). Under the default PPh Final regime, tax is 10% of gross receipts and no deductions are allowed. Consult a licensed Indonesian tax consultant (konsultan pajak) to determine which regime applies to your situation.
Filing Calendar
Key Dates & Filing Calendar
Indonesian tax residents must file an annual SPT (Surat Pemberitahuan) return and pay any outstanding tax by the deadlines below.
Indonesia uses a self-assessment tax system. Hosts are responsible for calculating, paying, and reporting their own tax obligations. Late payment attracts a 2% per month interest penalty.
Directorate General of Taxes (DJP), Kementerian Keuangan — pajak.go.id; Law No. 36/2008 on Income Tax as amended by HPP Law No. 7/2021
Tax Regimes
Final Tax vs. General Net-Income Tax: Which Applies to You?
Indonesian law provides two possible income-tax treatments for rental income. Most individual hosts default to the final-tax regime; the general regime may apply in certain circumstances.
PPh Final (Final Income Tax)
10% of gross rental receipts — simple, no deductions
- Tax rate is 10% of gross rental receipts (Government Regulation PP No. 34/2017)
- No expense deductions permitted — tax base is always gross income
- Tax is final — rental income is not added to other income for progressive rate purposes
- Tenant (if a legal entity or designated withholder) must withhold and remit on your behalf; otherwise host pays directly via e-billing
- Straightforward compliance — no need to track individual expenses for this regime
No ceiling — applies to all gross rental income
General Net-Income Tax (PPh Umum)
Progressive rates on net income after deductions
- Progressive individual rates: 5% (up to IDR 60 million), 15% (IDR 60–250 million), 25% (IDR 250–500 million), 30% (IDR 500 million–5 billion), 35% (above IDR 5 billion) — per HPP Law No. 7/2021
- Allowable deductions include depreciation, repairs, management fees, insurance, and PBB property tax
- Corporate entities pay a flat 22% CIT rate on net taxable income
- More complex compliance — requires proper bookkeeping and supporting documentation
- Generally less favourable for small individual hosts compared to the 10% final tax
N/A — progressive rates apply to net taxable income
Depreciation
Depreciation Rules for STR Properties in Indonesia
Depreciation is only deductible under the general net-income tax regime. Under PPh Final, no depreciation deduction is permitted.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Permanent building (bangunan permanen) | 20 years (5% straight-line p.a.) | Straight-line method only for buildings; declining-balance not permitted for buildings |
| Non-permanent building | 10 years (10% straight-line p.a.) | Applies to temporary or lightweight construction structures |
| Furniture & fixtures (Class I — 4-year life) | 4 years (25% SL / 50% DB) | Includes appliances, electronics, and short-life furnishings |
| Equipment & fittings (Class II — 8-year life) | 8 years (12.5% SL / 25% DB) | Includes air-conditioning units, water heaters, and similar assets |
Depreciation rates are set by the Indonesian Income Tax Law (UU PPh No. 36/2008) and PwC Indonesia Tax Summaries. Land (tanah) is never depreciable. The straight-line or declining-balance method must be chosen consistently once adopted.
If a depreciated asset is sold, any gain above book value is included in taxable income under the general regime. Under the final-tax regime, asset sales are subject to separate transfer/capital gains rules.
Pajak Hotel (Accommodation Tax)
Local Accommodation Tax: Pajak Hotel
Regional governments levy a Pajak Hotel (Hotel Tax) on short-term accommodation stays. This is separate from national income tax and is charged to guests.
Under Law No. 28/2009 on Regional Taxes and Retributions (and its successor HKPD Law No. 1/2022), regional governments (kabupaten/kota) may levy a Pajak Hotel of up to 10% on accommodation payments. Bali, Jakarta, and other tourist regions actively enforce this on villas, guesthouses, and STR properties.
Up to 10% Pajak Hotel + 11% PPN (if VAT-registered) on gross accommodation revenue
HKPD Law No. 1/2022 (replacing Law No. 28/2009); Bali Provincial Regulation; Directorate General of Fiscal Balance (DJPK), Kementerian Keuangan
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Direct booking (host collects payment) | Host collects Pajak Hotel from guest and remits monthly to regional tax office (BAPENDA/BPPRD) | Add 10% Pajak Hotel to guest invoice; keep separate records; file monthly regional tax return |
| Airbnb / OTA booking | Airbnb may collect and remit Pajak Hotel in some regions under agreements with local government; verify with your local BAPENDA | Confirm whether your OTA remits locally; if not, host remains responsible for collection and remittance |
| Corporate / long-stay (>30 days) | Pajak Hotel typically does not apply to stays exceeding 30 days — classified as rental, not accommodation | Long-term rentals fall under standard rental income tax rules; no Pajak Hotel obligation |
Pajak Hotel rates and enforcement vary by regency/city. Bali (Badung, Denpasar) and Jakarta actively audit STR operators. Register with your local BAPENDA (regional revenue agency) to obtain a Pajak Hotel registration number.
Platforms
How Airbnb & Other Platforms Handle Indonesian Taxes
Platform tax collection and reporting obligations in Indonesia are limited — hosts retain primary responsibility for income tax compliance.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Does not automatically report to DJP (Indonesian tax authority) for Indonesian hosts | Collects Pajak Hotel in select regions under local government agreements — verify for your area | Provides transaction history via host dashboard; no formal Indonesian tax document issued |
| Traveloka | Does not report host income to DJP on host's behalf | May collect Pajak Hotel depending on regional agreements | Booking and payment records available in host portal |
| Booking.com | Does not report to DJP for Indonesian hosts | Varies by property setup — confirm with local BAPENDA | Annual earnings statements available via extranet dashboard |
Hosting on Multiple Platforms?
Aggregate all rental income from every platform when calculating your PPh Final liability. Indonesia's self-assessment system means you are responsible for totalling income across Airbnb, Traveloka, Booking.com, and direct bookings. Keep records of all payouts and issue receipts (kwitansi) for direct bookings.
DAC7 / OECD Reporting (Indonesia context)
Indonesia is not an EU member state and DAC7 does not directly apply. However, Indonesia participates in the OECD Automatic Exchange of Information (AEOI/CRS) framework. Foreign-sourced income of Indonesian tax residents may be reported to DJP by foreign financial institutions under CRS. Indonesian hosts on global platforms should ensure their income is fully declared in their SPT Tahunan.
Airbnb Help Centre; DJP pajak.go.id; OECD CRS portal; HKPD Law No. 1/2022
Illustrative P&L: Final Tax vs. General Regime
Example based on IDR 300,000,000 annual gross rental income for an individual host. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep
Indonesian tax law requires taxpayers to retain records for 10 years. DJP audits (pemeriksaan pajak) can cover any open tax year within the statute of limitations.
| Keep | How long | Why |
|---|---|---|
| Platform payout statements & booking records | 10 years | Primary evidence of gross rental income for PPh Final calculation |
| Tax payment receipts (Bukti Penerimaan Negara / BPN) | 10 years | Proof that PPh Final was paid; required if DJP audits your SPT |
| Pajak Hotel registration & remittance receipts | 10 years | Regional tax compliance evidence; BAPENDA may audit separately from DJP |
| Property purchase documents, renovation invoices, depreciation schedules | 10 years (or life of asset + 10 years) | Required if using general net-income regime with depreciation deductions |
| NPWP (tax ID) registration and SPT Tahunan filings | Indefinitely | NPWP is required for all tax transactions; SPT filings are your formal tax record |
Indonesia's tax statute of limitations is generally 5 years from the tax year end, but DJP can extend this in cases of suspected fraud. Maintaining 10 years of records is the safest practice under KUP Law (General Tax Provisions Law).
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for general educational purposes only and does not constitute tax advice. Indonesian tax law is complex and subject to change. Always consult a licensed Indonesian tax consultant (konsultan pajak berizin) or the Directorate General of Taxes (DJP) for guidance specific to your situation.
- Directorate General of Taxes (DJP) — pajak.go.id — Official Indonesian tax authority; source for PPh Final rates, SPT filing deadlines, and e-billing procedures
- Government Regulation PP No. 34/2017 — Sets the 10% final income tax rate on rental income from land and/or buildings for Indonesian residents
- HPP Law No. 7/2021 (Harmonisasi Peraturan Perpajakan) — Amended income tax rates, VAT rates (11%), and various tax provisions including progressive individual income tax brackets
- HKPD Law No. 1/2022 (Hubungan Keuangan Pemerintah Pusat dan Daerah) — Governs regional taxes including Pajak Hotel (accommodation tax) up to 10% of accommodation revenue
- PwC Indonesia — Worldwide Tax Summaries (taxsummaries.pwc.com) — Depreciation rates, corporate tax rates, and deduction rules for Indonesia
- Global Property Guide — Indonesia Taxes and Costs — Summary of non-resident withholding tax (20%), PBB property tax rates, and transaction costs
- Bukit Vista Blog — Rental Property Tax Indonesia (2022) — Practitioner overview of PBB and rental income tax obligations for Bali property owners
Questions
Frequently Asked Questions: STR Taxes in Indonesia
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