Rental Income Tax Indonesia 2026: 10% PPh Final, Reporting...

Q: Do foreign landlords pay rental income tax in Indonesia?

Yes. Foreign property owners earning rental income in Indonesia are subject to the same 10% PPh Final tax as Indonesian citizens. If the foreigner is a tax resident, they report and pay through the normal system. Non-residents may face 20% withholding tax under Article 26, unless reduced by a double tax agreement with their home country.

Q: Can I deduct expenses against rental income tax in Indonesia?

No. The 10% PPh Final on rental income is calculated on gross rental payments with no deductions allowed for property management fees, maintenance, depreciation, or other expenses. This simplifies compliance but means the effective tax rate on net income is higher than 10% when expenses are considered.

Q: How do I report and pay rental income tax in Indonesia?

If your tenant is a corporate entity, they withhold 10% and provide you with a bukti potong (withholding tax receipt). For individual tenants, you must self-assess, pay via e-Billing (generating a billing code on DJP Online), and report in your annual SPT. Payment is due by the 15th of the following month.

Zantara AI

Loading Zantara...

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

10% Final Tax

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

Monthly RentRp 25.000.000

Months OccupiedRp 9,6

Annual Gross RentRp 240.000.000

Annual Tax (10%)Rp 24.000.000

Net Annual IncomeRp 216.000.000

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%)

Bukti Potong is Your Proof

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

0 of 5 completed0/4 required

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

Clarify Tax Handling

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

Don't Ignore Rental Tax

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

Ask Zantara

AI-powered answers from our knowledge base

Rental Income Tax in Indonesia 2026: Landlord Guide

Questions about how this applies to your case?

Rental Income Tax in Indonesia 2026: Landlord Guide

Rental Income Tax Overview

How It Works

Tax Rate and Base

Important Points

Tax Calculator

Rental Income Tax Calculator

Default Inputs

Estimated Result

Who Collects the Tax?

Corporate Tenants (Withholding)

Individual Tenants (Self-Pay)

Payment and Reporting

If You Self-Pay

Self-Pay Tax Obligations

Different Rental Scenarios

Tax by Rental Type

Villa Rental Taxation

Tax Applies to Each Rental

If Using Management Company

Other Property Taxes

PBB (Land and Building Tax)

BPHTB (Transfer Tax)

Foreign Owner Considerations

If You're Tax Resident

If You're Non-Resident

Record Keeping

Common Questions

Ask Zantara

Related Articles