Taxes
PPh Final (tax on rental income)
PPh Final (налог с дохода от аренды) · PPh Final Pasal 4(2) on rental income / PPh 26
Villa rental income is taxed in Indonesia at source. For a resident (an Indonesian, or a foreigner with an NPWP living there over 183 days) it is a final tax of 10% of gross rent under PPh Article 4(2). For a non-resident it is 20% withholding under PPh 26 on gross income. The rate drops where a tax treaty exists between Indonesia and your country and you file the DGT residency form.
The tax is withheld by a corporate tenant or the management company acting as agent. It remits the tax and issues you a withholding slip (bukti potong), which you need for the credit at home. Separate from PPh is the 10% local accommodation tax (NPWPD), paid by the guest.
Tax is then due in your country of residence with a credit for the Indonesian tax. Worked cases for Australia (20% non-resident rate and the treaty credit), the US, UK, EU, Singapore and the UAE are in the articles. Realistic net yield after all taxes and management is 10–15% for a managed villa.
Read more in the blog
- Property taxes in Bali and what owners actually pay
- How rental income from your Bali villa is taxed at home
- An Australian bought a Bali villa. What you will owe at home
Related terms
Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.
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