Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Indonesia tax professional before filing.
Bali, Indonesia · Indonesia · Short-term rental taxes
Short-Term Rental Taxes in Bali, Indonesia
Rental income from Bali villas and short-term lets is subject to Indonesian final income tax on gross revenue, plus a local Hotel & Restaurant Tax (PHR), with rates and obligations varying by ownership structure and residency status.
The 30-Second Answer
- Final Income Tax (PPh Final) applies to rental income at 10% of gross revenue for Indonesian tax residents and NPWP-holders under Government Regulation No. 34/2017 (Article 4(2)); non-residents without an NPWP can face Article 26 withholding at 20% of gross.
- Bali's local Hotel & Restaurant Tax (Pajak Hotel dan Restoran / PHR) is charged at 10% of the room rate and must be collected from guests and remitted to the Badung or Denpasar regional government.
- Foreign individuals cannot hold short-term rental licenses personally; a PT PMA (foreign-owned company) with the correct KBLI 55193 accommodation license is the standard compliant structure, registered via the OSS (Online Single Submission) system.
- Annual income tax returns are due 31 March (individuals) or 30 April (entities); monthly VAT returns apply to VAT-registered businesses, and PHR is remitted monthly to the regional tax office.
Deductions
What Can Bali STR Hosts Deduct?
Under the 10% PPh Final regime, no expense deductions are permitted — tax is calculated on gross rental revenue. Deductions become relevant only if operating under a PT PMA corporate structure filing normal corporate income tax (PPh Badan).
Deductions above apply only under a PT PMA corporate structure subject to normal corporate income tax (PPh Badan at 22%). Under the PPh Final 10% regime (Government Regulation No. 34/2017), tax is assessed on gross rental receipts with no deductions permitted. Consult a licensed Indonesian tax consultant (konsultan pajak) to determine which regime applies to your situation.
Filing Calendar
Key Dates & Filing Calendar
Indonesian tax deadlines apply nationally; PHR remittance deadlines are set by the Bali regional government (Badung/Denpasar).
PPh Final withholding tax on rental income is generally due by the 10th of the month following payment. Late filing attracts administrative penalties under Indonesia's General Tax Provisions Law (UU KUP).
Airbnb Help Center – Responsible Hosting in Indonesia (airbnb.com/help/article/3242); Directorate General of Taxes – pajak.go.id
Tax Regimes
Which Tax Regime Applies to Your Bali Rental?
The applicable income tax regime depends on your ownership structure and residency status — not a free choice as in some countries.
PPh Final 10% (Individual / NPWP Holder)
Flat 10% on gross rental revenue — simple but no deductions
- Tax rate is 10% of gross rental receipts under Government Regulation No. 34/2017 (Article 4(2))
- No expense deductions permitted — tax is on gross, not net profit
- Tax is typically withheld by the tenant or remitted directly by the landlord
- Reported annually via SPT Tahunan Orang Pribadi (individual return, due 31 March)
No ceiling — applies to all gross rental income
Article 26 Withholding 20% (Non-Resident Individual)
20% on gross for foreign individuals without Indonesian NPWP
- Non-residents without an NPWP face Article 26 withholding at 20% of gross rental income
- Rate may be reduced by an applicable tax treaty between Indonesia and the owner's home country
- No deductions permitted; tax is withheld at source by the Indonesian payer
- Structuring via PT PMA is widely recommended to reduce effective tax rate and achieve compliance
No ceiling — applies to all gross rental income
PPh Badan 22% (PT PMA Corporate Structure)
Corporate income tax on net profit — deductions apply
- PT PMA pays corporate income tax (PPh Badan) at 22% on net taxable profit
- Legitimate business expenses (management, repairs, depreciation, utilities) are deductible
- Effective tax rate on gross revenue can be lower than 20% Article 26 if costs are significant
- Requires correct KBLI 55193 accommodation license, OSS registration, and monthly compliance obligations including VAT and PHR
No ceiling — standard corporate rate applies
Depreciation
Depreciation for Bali Rental Properties (PT PMA)
Depreciation deductions are only available under a PT PMA corporate structure filing normal corporate income tax (PPh Badan). Under the PPh Final 10% regime, no depreciation deduction is permitted.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Permanent building structure (villa) | 20 years (straight-line) | Indonesia's Income Tax Law (UU PPh) classifies permanent buildings in Group IV; 5% straight-line annual rate applies. |
| Furniture & fittings | 4–8 years | Movable assets classified in Group I (4 yr) or Group II (8 yr) under UU PPh asset classification tables. |
| Air conditioning & electrical equipment | 8 years | Typically Group II assets; 25% declining-balance or 12.5% straight-line per year. |
| Pool & outdoor infrastructure | 8–16 years | Classification depends on construction type; consult a tax consultant for asset-specific grouping. |
Asset groupings and depreciation rates are set by Indonesia's Income Tax Law (UU No. 36/2008 on PPh) and implementing regulations. Leasehold land improvements are amortised over the lease term. Always confirm asset classification with a licensed Indonesian tax consultant.
If a depreciated asset is sold, any gain above book value is treated as taxable income for the PT PMA in the year of disposal under Indonesian corporate tax rules.
Pajak Hotel dan Restoran (PHR)
Bali's Hotel & Restaurant Tax (PHR)
Bali's regional Hotel & Restaurant Tax (PHR) is charged at 10% of the accommodation price and must be collected from every guest and remitted monthly to the regional government.
PHR (Pajak Hotel dan Restoran) is a regional tax levied by Bali's district governments (e.g., Badung, Denpasar, Gianyar) on accommodation services including villas, guesthouses, and short-term rentals. It is charged on top of the nightly rate and is the host's legal obligation to collect and remit — not the guest's.
PHR 10% + PPh Final 10% = up to 20% of gross revenue in combined tax obligations (before VAT)
Legal Indonesia – Airbnb Bali 2026 (legalindonesia.id); Bali Property Rules – STR Compliance for Foreigners (balipropertyrules.com); Directorate General of Taxes – pajak.go.id
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Direct booking (guest pays host) | Host collects PHR from guest; host remits to regional Bapenda monthly | Add 10% PHR to invoice; hold in separate account; remit by month-end following collection |
| Airbnb / OTA booking | Platform may collect VAT/service tax; PHR remittance obligation typically remains with the host/operator | Confirm with your platform what taxes they collect; PHR is generally still the host's responsibility to remit locally |
| Corporate / long-term rental (>30 days) | PHR may not apply to long-term residential leases; PPh Final withholding applies | Classify booking type correctly; long-term leases have different tax treatment under GR 34/2017 |
PHR rates and administration are set by each Bali district (kabupaten/kota). Badung and Denpasar both apply 10%. Confirm the current rate with your local Badan Pendapatan Daerah (Bapenda) office, as regional regulations can be updated independently.
Platforms
How Airbnb & Other Platforms Handle Bali Taxes
Platforms operating in Indonesia have varying obligations; hosts remain responsible for PHR remittance and Indonesian income tax compliance regardless of what the platform collects.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Provides host earnings summary; Indonesian tax authorities may access data under information-exchange frameworks | Collects Indonesian VAT (PPN) on service fees in some cases; PHR remittance typically remains host's responsibility | Available via host dashboard (host earnings summary) |
| Booking.com | Provides annual earnings statements; hosts responsible for own tax filings | May collect VAT on platform commission; PHR is host's obligation | Available via extranet reporting |
| Vrbo / Other OTAs | Earnings data available in host account; no automatic reporting to Indonesian DGT confirmed | PHR collection and remittance is host's responsibility | Check individual platform extranet |
Listing on Multiple Platforms
If you list on Airbnb, Booking.com, and other OTAs simultaneously, you must aggregate all rental income across platforms for your annual SPT Tahunan income tax return. PHR must be collected and remitted for every booking regardless of which platform it came through. Keep separate booking records per platform to reconcile totals accurately.
Indonesia's Marketplace Tax Reporting (PMK / DGT Rules)
Indonesia's Directorate General of Taxes has been expanding digital economy tax rules. Platforms with significant Indonesian users may be required to collect and remit VAT (PPN) on their service fees under PMK regulations. A marketplace tax framework affecting platforms was reported to be under development for 2026. Hosts should monitor DGT announcements at pajak.go.id for updates on platform reporting obligations.
Airbnb Help Center – Responsible Hosting in Indonesia (airbnb.com/help/article/3242); Directorate General of Taxes – pajak.go.id
Illustrative P&L: PT PMA vs. Non-Resident Individual
Example based on a villa earning IDR 500,000,000 gross annual rental revenue. For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and for How Long
Indonesian tax law requires taxpayers to retain records for a minimum of 5 years; good record-keeping protects you in the event of a DGT audit or regional PHR inspection.
| Keep | How long | Why |
|---|---|---|
| Booking records & guest invoices (all platforms) | 5 years minimum | Required to substantiate gross rental income reported in SPT Tahunan and PHR returns |
| PHR collection & remittance receipts | 5 years minimum | Proof of compliance with regional Hotel & Restaurant Tax obligations; required for Bapenda audits |
| Bank statements showing rental income deposits | 5 years minimum | Cross-referenced by DGT against declared income; essential for PPh Final or PPh Badan filings |
| Expense receipts & contracts (PT PMA only) | 5 years minimum | Required to support deductions claimed in corporate income tax (PPh Badan) return |
| OSS license, NIB, KBLI certificates, and building permits (PBG/SLF) | Indefinitely (while operating) | Licensing documents required for platform compliance, regional inspections, and renewal applications |
Indonesia's General Tax Provisions Law (UU KUP) requires tax records to be kept for 5 years from the end of the tax year or the date the tax obligation is settled. Digital copies are acceptable but must be retrievable and legible. Penalties for failure to produce records during a DGT audit can be significant.
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 educational purposes only and does not constitute tax or legal advice. Indonesian tax law is complex and changes frequently. Always consult a licensed Indonesian tax consultant (konsultan pajak berizin) and a qualified lawyer for advice specific to your situation. Rates and rules cited reflect information available as of mid-2025/early 2026.
- Directorate General of Taxes (DGT) – pajak.go.id — Official Indonesian tax authority; source for PPh Final rates, Article 26 withholding, VAT rules, and filing deadlines.
- Government Regulation No. 34/2017 (PP 34/2017) — Sets the 10% final income tax rate on land and building rental income under Article 4(2) of the Income Tax Law.
- Airbnb Help Center – Responsible Hosting in Indonesia — airbnb.com/help/article/3242 – Overview of Indonesian national tax obligations for Airbnb hosts including filing deadlines.
- Bali Property Rules – STR Compliance for Foreigners (March 2026) — balipropertyrules.com – Detailed guide to licensing (NIB, OSS, KBLI 55193, Pondok Wisata), zoning, and tax obligations for foreign villa owners.
- Legal Indonesia – Airbnb Bali 2026: Rules, Licenses, and Rental Taxes — legalindonesia.id – Overview of the March 31, 2026 compliance deadline, PHR registration, and PT PMA licensing requirements.
- Zenith Hospitality – Bali Villa Rental Income Tax — zenith-hospitality.com – Practical explanation of PPh Final 10% vs. Article 26 20% and PT PMA tax optimization for foreign investors.
- Indonesia Income Tax Law (UU No. 36/2008 on PPh) — Sets asset depreciation groups, corporate income tax rates, and Article 26 withholding rules.
- OSS (Online Single Submission) – oss.go.id — Indonesia's business licensing portal for NIB registration and KBLI accommodation license applications.
Questions
Frequently Asked Questions: Bali STR Taxes
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