Taxes in Bali for visitors, residents and remote workers

Visitors to Bali meet three charges: VAT on shopping, a regional tax on restaurant and hotel bills, and the provincial tourist levy. People who stay longer can become Indonesian tax residents and owe income tax on their worldwide income. This is general information, and a tax consultant (konsultan pajak) should check individual cases.

At a glance

Charge	Who pays	Rate or amount
VAT (PPN)	Shoppers	12% by law, 11% effective on most goods and services, 12% on luxury goods (2026)
PBJT on food, drink and hotels	Restaurant and hotel guests	Up to 10%, set by each regency or city; 10% in Denpasar (2026)
Bali tourist levy	Foreign tourists	Rp 150,000 per person per trip (2026)
Personal income tax	Tax residents	5 to 35 percent of taxable income (2026)
Final tax on rent	Landlords	10% of gross rent
Land and building tax (PBB-P2)	Property holders	Up to 0.5% a year; 0.1% or 0.2% in Denpasar
Acquisition duty (BPHTB)	Buyers of land or buildings	Up to 5%; 5% in Denpasar

VAT on shopping

Law 7 of 2021 on the harmonisation of tax regulations (HPP) sets VAT (PPN) at 12 percent. Since 1 January 2025, Minister of Finance Regulation 131 of 2024 applies that rate to a base of 11/12 of the price for goods and services that are not luxury goods, which gives an effective rate of 11 percent. The full 12 percent applies to luxury goods that also carry luxury goods sales tax (PPnBM), such as motor vehicles. For sales to final consumers it has applied since 1 February 2025. The rates were unchanged in September 2026.

Restaurant and hotel bills

Meals and drinks served in restaurants, cafés, warungs and hotels, and catering, carry no VAT under Article 4A of the VAT Law as amended by Law 7 of 2021. Room rental in hotels and villas is also outside VAT. Both are regional taxes instead.

Law 1 of 2022 on fiscal relations between the central and regional governments (HKPD) replaced the old restaurant tax, the PB1 line on older receipts, with the tax on certain goods and services (PBJT). Each regency or city sets the rate in its own regional regulation, up to 10 percent of the amount the customer pays.

In Denpasar, Regional Regulation 5 of 2023 sets PBJT at:

• 10 percent on food and drink, hotel services, parking, and arts and entertainment
• 40 percent on entertainment at discotheques, karaoke venues, nightclubs and bars

Hotel services there cover hotels, hostels, villas, homestays (pondok wisata), guesthouses, bungalows, resorts, glamping and private homes used as hotels. Food and drink count as a restaurant supply when the seller provides at least tables, chairs or tableware.

A bill that adds 11 percent "PPN" to a café meal applies the wrong tax. Food and drink sold by supermarkets that do not only sell food, by food factories and in airport lounges fall outside PBJT and carry VAT instead.

Service charge

A service charge is not a tax. Minister of Manpower Regulation 7 of 2016 treats service money at hotels and hotel restaurants as an addition to the set price, and the employer must pass it on to the staff.

Bali tourist levy

Every foreign tourist visiting Bali pays a levy of Rp 150,000 per person (2026). It is a provincial levy, separate from VAT, PBJT and visa fees. It has applied since 14 February 2024 under Bali Provincial Regulation 6 of 2023, amended by Regulation 2 of 2025.

• Pay once per trip, before leaving Indonesia.
• Pay online through the Love Bali website or app before arrival, at the counters at Bali's airport and port, or at registered hotels, travel agents and attractions.
• Payment is cashless: credit card, bank transfer, virtual account, UnionPay or QRIS.
• Proof of payment is a levy voucher with a QR code, sent by email.

Holders of diplomatic and official visas, transport crew, KITAS and KITAP holders, and holders of family unification, student, golden and certain other visas are exempt. Golden visa and other visa holders apply for the exemption through Love Bali. The others show their card or visa at the check.

VAT refund for tourists

Foreign tourists can reclaim the VAT on goods they take home under Minister of Finance Regulation 81 of 2024. The conditions in 2026:

• You are not an Indonesian citizen or permanent resident, have no Indonesian tax number, and stay no longer than 60 days from arrival.
• You buy at a participating store showing the "Tax Free Shop" logo and show the passport you used on arrival, which goes on the tax invoice.
• The purchases fall within 30 calendar days before departure and leave Indonesia in your accompanying baggage.
• The VAT adds up to at least Rp 500,000, from one invoice or several, with at least Rp 50,000 of VAT on each invoice. At the 11 percent effective rate, that takes about Rp 4.5 million of purchases before VAT.

How to claim:

1. Create an account and fill in the claim form in the VAT Refund for Tourists app, ideally soon after the first purchase.
2. On the day you leave, go to the airport VAT refund counter with the goods, your passport, your boarding pass and the tax invoices. Officers can compare the goods with the invoices.
3. One claim is allowed per visit.

Refunds up to Rp 5,000,000 are paid in cash in rupiah (2026). Larger amounts go by bank transfer within one month, minus the transfer costs. If you take cash for a larger refund, you receive Rp 5,000,000 and lose the rest. Refund counters operate at five airports, including Bali's I Gusti Ngurah Rai.

Tax residency

Director General of Taxes Regulation PER-23/PJ/2025 of 9 December 2025 sets the tests. An individual, Indonesian or foreign, is resident for tax when any one of these applies:

• Living in Indonesia: a place they own, rent or can use at any time that is more than a stopover, a main centre of personal, social or economic life in Indonesia, or a daily routine there.
• 183 days: more than 183 days in Indonesia within any 12 months. The days need not be continuous, and part of a day counts as a full day.
• Intent: being in Indonesia during a tax year with the intention of living there.

Intent can be shown by a KITAP, a limited stay visa (VITAS) or limited stay permit (ITAS) valid for more than 183 days, a work or business contract longer than 183 days, a lease longer than 183 days or a family move. A long stay permit can therefore make you resident before you have spent 183 days in the country. A visitor who stays no more than 183 days in 12 months, with no home in Indonesia and no intent to live there, is not resident.

Residents are taxed on income from Indonesia and from abroad. A resident becomes a domestic taxpayer once that income exceeds the non-taxable threshold (PTKP) shown below.

Tax number and NIK

Since 14 July 2022 the population identity number (NIK) has served as the tax number (NPWP) for resident individuals, meaning Indonesian citizens and foreigners living in Indonesia. Individuals who are not resident, companies and government bodies use a 16 digit NPWP. All tax services have used the new formats since 1 January 2024.

A tax number does not by itself mean tax is due: payment starts when income exceeds the PTKP. Someone with no income, or income below the PTKP, can ask the tax office or Kring Pajak (1500200) to make the number non-effective. A tourist who holds an Indonesian tax number cannot use the VAT refund.

Income tax rates

Law 7 of 2021 sets the rates for resident individuals in Article 17 of the Income Tax Law. They still apply in 2026:

Annual taxable income	Rate
Up to Rp 60,000,000	5%
Over Rp 60,000,000 up to Rp 250,000,000	15%
Over Rp 250,000,000 up to Rp 500,000,000	25%
Over Rp 500,000,000 up to Rp 5,000,000,000	30%
Over Rp 5,000,000,000	35%

Taxable income is net income minus the PTKP. The PTKP in 2026, unchanged since Minister of Finance Regulation 101 of 2016:

• Rp 54,000,000 for the taxpayer
• Rp 4,500,000 more if married
• Rp 4,500,000 for each dependent, up to three
• Rp 54,000,000 more when a wife's income is combined with her husband's

A single person with net income of Rp 60,000,000 has taxable income of Rp 6,000,000 and owes Rp 300,000 at the 5 percent rate.

Employers withhold income tax (PPh 21) from salaries paid in Indonesia. Income paid from abroad has no Indonesian withholding, so a resident calculates and pays that tax during the year through monthly instalments (PPh Pasal 25) and reports it in the annual return.

Annual return and Coretax

Individuals file the annual return (SPT Tahunan) by 31 March after the end of the tax year, companies by 30 April. Returns for the 2025 tax year, filed in 2026, were the first to go through Coretax, the new system of the Directorate General of Taxes. A late return brings a fine of Rp 100,000 for an individual and Rp 1,000,000 for a company (2025), and late or missing returns can also lead to criminal sanctions.

Remote workers and the E33G visa

The E33G remote worker visa (second home remote worker) lets a foreigner live in Indonesia while working for a company established outside Indonesia. The stay permit runs for one year and can be extended online. Applicants show income of at least USD 60,000 a year, an employment contract with the foreign company and a balance of at least USD 2,000 over the last three months (2026). Holders may not sell goods or services, and may not work for pay for people or companies in Indonesia.

The visa is an immigration permit, and tax follows the residency tests above. The one year E33G stay permit is an ITAS valid for more than 183 days, which counts as evidence of intent to live in Indonesia. A resident is taxed on worldwide income, which includes salary from a foreign employer. The four year rule below can limit this for foreign experts, and a tax treaty (P3B) with the home country can affect the result. Foreign salary has no Indonesian withholding, so a resident remote worker pays through the monthly instalments and the annual return.

The four year rule for foreign experts

Law 11 of 2020 on Job Creation, the omnibus law, added paragraph (1a) to Article 4 of the Income Tax Law. As written, a foreign national who has become a resident taxpayer is taxed only on income received or obtained from Indonesia, provided that:

• a. they have certain expertise; and
• b. it applies for 4 tax years counted from becoming a resident taxpayer.

Income from Indonesia includes pay for work, services or activities in Indonesia that is paid abroad. The rule does not apply to foreigners who use a tax treaty instead.

Since 1 January 2025, Minister of Finance Regulation 81 of 2024 (Articles 442 to 447) sets the details:

• Certain expertise covers foreign workers in positions set by the Minister of Manpower and foreign researchers designated by the relevant minister, with expertise in science, technology or mathematics shown by a certificate, a diploma or at least five years of relevant work experience.
• The person must transfer knowledge.
• The treatment is optional and needs approval. The application goes to the Director General of Taxes through Coretax before the treatment is used.
• Applicants must have filed their annual returns for the last two tax years, where filing was required.

The four tax years run from when you first became resident, even if you leave Indonesia and come back later.

Property taxes

Land and building tax (PBB-P2)

PBB-P2 is an annual regional tax on land and buildings. Each regency or city sets the rate, up to 0.5 percent under Law 1 of 2022. The base is the property's tax value (NJOP), set by the regional government. Denpasar rules, in force since 2024:

• 0.1 percent a year where the NJOP is up to Rp 1,000,000,000, and 0.2 percent above that
• Rp 15,000,000 of NJOP is untaxed, for one property per taxpayer
• 0 percent for food production and livestock land and for designated urban rice field green zones
• the tax follows the state of the property on 1 January

Denpasar waives PBB-P2 penalties for 2025 and earlier and reduces the bill for homes whose tax rose after the NJOP update, until 30 November 2026.

Acquisition duty (BPHTB)

Buyers pay BPHTB when they acquire rights to land or buildings. Law 1 of 2022 caps it at 5 percent and leaves at least Rp 80,000,000 of value untaxed on a first acquisition. In Denpasar the rate is 5 percent of the transaction price, minus Rp 80,000,000 for a first acquisition in the city. Where the price is unknown or below the NJOP, the NJOP is used. For a sale, the duty falls due when the conditional sale agreement (PPJB) is signed, or the deed of sale where there is no PPJB.

Renting out property

Government Regulation 34 of 2017, in force since 2 January 2018, sets a final income tax of 10 percent on the gross rent from land or buildings, with no minimum amount. When the tenant is a government body, a domestic company or another appointed withholding agent, the tenant withholds it. Otherwise the owner pays it, now through Coretax. Income from lodging services, such as rooms, dormitories and boarding houses (kos), falls outside this final tax. An owner who does not rent out a home pays only PBB.

Villas and private homes run as accommodation are hotel services for PBJT, which guests pay at 10 percent in Denpasar.