Tax and accounting in Bali

A tax and accounting firm registers the owner or the owner’s company for tax, keeps the books, and prepares and files tax returns. For a property investor the taxes that usually come up are:

• On buying: the regional duty on acquiring land and buildings, BPHTB, at a rate of at most 5% set by each regency (UU 1/2022 Article 47). The seller pays a final income tax of 2.5% of the gross transfer value in most cases (PP 34/2016 Article 2(1)).
• Every year: the regional land and building tax, PBB-P2, at a rate of at most 0.5% set by each regency (UU 1/2022 Article 41).
• On rental income: a final income tax of 10% of the gross rent on land and building rental (PP 34/2017 Article 4(1)). Income from lodging services is outside that rule (Article 2(3)). A villa rented to guests also falls under the regional hotel tax (PBJT), at a rate of at most 10% (UU 1/2022 Articles 53(1) and 58(1)). See what tax applies to villa rental income?.
• On a company’s profit: corporate income tax at 22% from tax year 2022 (UU 7/2021, amending Article 17 of the income tax law).

For a PT PMA, the firm usually also handles the company’s monthly and annual filings. See PT PMA for property investors and company setup.

• Which taxes and returns are covered: monthly returns, annual returns, withholding, regional taxes.
• Whether bookkeeping is included, and in what software and language the books are kept.
• The fee for registration (taxpayer number, NPWP) if you do not have one yet.
• Who signs and submits the returns, and whether you get copies of every filing and payment receipt.
• What is charged for tax audits or correspondence with the tax office.
• Deadlines the firm will work to.

• The consultant’s practice licence (Izin Praktik) and card. A tax consultant needs a practice licence issued by the Secretary General of the Ministry of Finance (PMK 111/2014 as amended by PMK 175/2022, Article 3(1)). To qualify, a consultant must be an Indonesian citizen living in Indonesia, hold a taxpayer number, belong to a registered tax consultants’ association and hold a tax consultant certificate (Article 2(1)). Licences start at level A and can be raised in steps (Article 5(1) and (2)).
• Your own NPWP. Every taxpayer who meets the conditions must register with the tax office and is given a taxpayer number (UU 28/2007 Article 2(1)).
• The firm’s NIB (business identification number), issued through OSS.

• The adviser cannot show a practice licence but offers to act for you with the tax office.
• Returns filed without you receiving copies or payment receipts.
• Rental income from guests treated as 10% final tax with no mention of the lodging exception in PP 34/2017 Article 2(3), or no mention of the regional hotel tax.
• No clear answer on who pays and files the BPHTB and PBB-P2.

Filing deadlines from UU 28/2007 Article 3(3), as read 2026-10-22:

• Monthly returns: within 20 days after the end of the tax period.
• Annual income tax return for an individual: within 3 months after the end of the tax year.
• Annual income tax return for a company: within 4 months after the end of the tax year.

PBB-P2 is assessed on the state of the land and building on 1 January of each tax year (UU 1/2022 Article 43(2)).