Rental Income Tax in Indonesia 2026: Landlord Guide
If you rent out property in Indonesia, you need to understand how rental income is taxed. Here's what property owners need to know.
Rental Income Tax Overview
Rental income from land and buildings in Indonesia is subject to 10% final income tax (PPh Final) on the gross rental amount.
"Final" means this is the complete tax - you don't add it to your other income for progressive rates.
How It Works
Tax Rate and Base
| Element | Detail |
|---|---|
| Tax rate | 10% |
| Tax base | Gross rent received |
| Tax type | PPh Final (Article 4(2)) |
| Deductions | None allowed |
Important Points
- Calculated on gross rent (no expense deductions)
- Final tax - not combined with other income
- Applies to all types of rental (residential, commercial)
- Same rate for individuals and companies
Tax Calculator
Rental Income Tax Calculator
Calculate your rental tax liability
Default Inputs
- Monthly Rent (IDR)
- 25,000,000 IDR
- Occupancy Rate (%)
- 80 %
Estimated Result
Estimated total
Effective monthly tax: IDR 2,000,000
Rp 24.000.000
Who Collects the Tax?
Corporate Tenants (Withholding)
If your tenant is a company (tax subject):
- Tenant withholds 10% from rent payment
- Tenant pays the tax to the government
- Tenant gives you Bukti Potong (tax slip)
- You receive net rent (90%)
The Bukti Potong proves your tax was paid. Keep it for your records and include in your annual tax return.
Individual Tenants (Self-Pay)
If your tenant is an individual:
- You receive full rent (100%)
- You must pay 10% tax
- Pay via bank or tax office
- Report in annual tax return
Payment and Reporting
If You Self-Pay
Self-Pay Tax Obligations
When you must pay the tax yourself
calculate
payment
reporting
records
Different Rental Scenarios
Tax by Rental Type
How tax applies to different situations
| Feature | Residential Long-Term House or apartment rental | Commercial Property Office, retail, warehouse | Villa Rental Short-term vacation rental | Through PT PMA Company owns property |
|---|---|---|---|---|
| Tax Rate | 10% | 10% | 10% | 10% |
| Collection | Usually self-pay | Often withheld | Self-pay | Company pays |
| Reporting | Annual SPT | Annual SPT | Annual SPT | Corporate SPT |
Villa Rental Taxation
For short-term/vacation rentals:
Tax Applies to Each Rental
- 10% on each rental payment
- Applies even to nightly rates
- Management company may collect and pay
If Using Management Company
Many villa owners use management companies that:
- Collect rent from guests
- Withhold and pay 10% tax
- Provide you with documentation
- Handle reporting
When hiring a villa management company, clarify: - Who pays the 10% rental tax? - Will they provide Bukti Potong? - Is tax included in their fee structure?
Other Property Taxes
Besides rental income tax, property owners also pay:
PBB (Land and Building Tax)
| Aspect | Detail |
|---|---|
| Rate | 0.1% - 0.3% of NJOP |
| Frequency | Annual |
| Payment | By August 31 |
| Who pays | Property owner |
NJOP = Nilai Jual Objek Pajak (taxable value, often below market)
BPHTB (Transfer Tax)
- 5% when buying property
- Paid by buyer
- One-time at purchase
Foreign Owner Considerations
If You're Tax Resident
Report rental income on your annual SPT (Form 1770):
- Include in income section
- Report tax already paid
- No additional tax (it's final)
If You're Non-Resident
- 10% final tax still applies
- May have treaty implications
- Consider getting DGT form for reduced withholding on other income
Failing to pay rental income tax can result in: - Back taxes plus interest - Penalties up to 200% - Issues with future property transactions - Problems with visa renewal (if applicable)
Record Keeping
Keep these records:
- Rental agreements
- Payment receipts from tenants
- Bukti Potong from corporate tenants
- Tax payment receipts (NTPN)
- Property ownership documents
Retention: Keep for 10 years (tax audit period)
Common Questions
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