Rental Income Tax Indonesia 2026 | 10% PPh Final Guide

Q: What is the tax rate on rental income in Indonesia?

Rental income from land and buildings is taxed at 10% PPh Final on the gross rental amount. No deductions are allowed for maintenance, management fees, or mortgage interest. A villa rented for IDR 200 million per year generates IDR 20 million in tax.

Q: Who pays the rental income tax -- landlord or tenant?

If the tenant is a company or registered tax withholder (pemotong pajak), the tenant withholds 10% from the rent payment and remits it. If the tenant is an individual, the landlord must self-assess and pay the 10% tax directly.

Q: Do I need to report Airbnb rental income in Indonesia?

Yes. All rental income from platforms like Airbnb must be reported and taxed at 10% PPh Final. If you receive rent directly from individual tourists, you must self-assess and remit the tax. Operating without proper reporting can result in penalties.