Bali Property Taxes
Published on: January 27th, 2021 Author: Karolis
Many foreigners that live in Bali are not aware of Bali property taxes that they are accountable of paying. Many have no ideas about the regulations and how is the island governed. Most of foreigners are not aware that they have to pay the annual property tax. Also if you want to rent your villa you are also need to pay income tax an all booking of your villa regardless if you are not living in Indonesia or you have not registered as a tax payer. And the last main is the capital gains tax that you need to pay when you sell or buy property. These are the 3 main taxes that any foreigner should be aware of to prevent having issue and fines. Many foreigners try to get around these taxes and not paying any of them. That is risky way to do which can get them in big troubles.
Indonesian Individual Taxation
If you reside in Indonesia less then 183 days in period of 12 months you are not required to register for tax purposes. None Indonesian resident are taxed ONLY on their Indonesian soured income.
Foreigners are liable to pay income tax on their Indonesian sourced income. None Indonesian residents are taxed at a flat rate of 20%. If you country has a double taxation agreement with Indonesia this flat rate can be reduced to 10%. That include income received from rental properties.
Indonesian Capital Gains
If you sell land or villa you are entitled to pay a flat rate of 5%. Also when you buy villa or land your are also entitled to a 5% tax rate. You have to pay this amount from no more than 0.3% from the sale value of the property. There is a nontaxable threshold amount which is different depending on the region and it is minimum of IDR 60 million in Bali.
Sales Tax on Luxury Goods
Sales on bigger value properties have higher taxation rates. Luxury villas and mansions which have a value bigger then IDR 20 billion (1,350,000$) and more is subject to 20% sales tax. Luxury flats and apartments that have value above IDR 10 billion (670,000$) and above are also subject to 20% tax rate.
Bali Property Taxes
Bali property taxes is levied at progressive rates on the assessed value of the property. You have to pay this yearly. And when selling your property you will have to provide evidence that you paid these taxes to the government.
| PROPERTY TAX | |
| TAX BASE, IDR (US$) | TAX RATE |
| Up to 200 million (US$13,761) | 0.01% |
| 200 million – 2 billion (US$137,611) | 0.10% |
| 2 billion – 10 billion (US$688,054) | 0.20% |
| Over 10 billion (US$688,054) | 0.30% |
| Source: Global Property Guide | |
Corporate taxation
Income and capital gains from companies are taxed with a 25% tax rate. Expenses and operating cost are deducted from the taxable amount.
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