Double taxation agreement (DTA) , Bali villa glossary

In one sentence. The treaty between Indonesia and your country that reduces withholding on rent and lets you credit Indonesian tax at home. Indonesia has DTAs with Australia, the UK, most EU states, Russia and Kazakhstan among others.

A DTA (Indonesian P3B, Persetujuan Penghindaran Pajak Berganda) allocates taxing rights between two countries. For property income the rule is nearly universal. Indonesia taxes first (at source), your country of residence second, with a credit for what was paid.

In practice, without a DGT form (residency certificate filed through the withholding agent) a non-resident pays 20% under PPh 26, and with it the treaty rate. At home you declare the income and credit the Indonesian tax using the bukti potong slip, which in Australia means the foreign income tax offset, in the UK foreign tax credit relief, and so on.

A separate topic is CFC rules if the villa sits in a PT PMA. The company may count as a controlled foreign corporation and its profit be taxed in your hands at home. Country-by-country cases are in the articles.

Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.

Double taxation agreement (DTA)

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