Tax

Indonesia has tax treaty agreements with 57 countries. These tax arrangements are designed to avoid double taxation of income and/or business related profit both within Indonesia and your home country. Each country has different agreements and qualifications. For details, please ask your home country tax office or tax accountant.

Property Related Taxes
There are a handful of property related taxes property buyers/owners are liable to in Indonesia. Below is a brief overview of these taxes.

SPPT/PBB 　　　
This is an annual land and building tax which is set by the government valuation of the property.

PPN atas Kegiatan Menbagun
This tax is a value added tax on the cost of constructing a new building. The rate varies as follows:
4% from your building cost when you built by yourself ( No construction contract with constructor)
10% from your building cost when you built by constructor ( construction contract with constructor)
Both land and building floor below 200m2 avoid above tax.

BPHTB 
BPHTB is a tax on the sale and acquisition of property
A property acquisition 5% from purchase price mince Rp.10,000,000,-
A property seller 5% from sale price.

Pajak Sewa
This tax is applicable to the income value of a lease agreement, at 10% from lease price. The property owner/landlord is liable for this tax, but the tax officer will often come to the property address to collect, which can cause issues. It is advisable when leasing a property to be clear who is liable for this tax and when it will be paid.

Luxury Tax
Luxury tax is applicable to any property acquisition in which the government views the property as a luxury item. This can apply to apartments, condominiums, and sometimes villa too. The rate is set at 20% from purchase price.

Company tax
Company tax is based on the net income of an Indonesian business (CV, PT, PMA).
Company tax 25% of profit.

Income tax
Based on an individual's personal income:
5% personal income below Rp.50,000,000,-
15% personal income between Rp.50,000,000,- to Rp.250,000,000,-
25% personal income between Rp.250,000,000,- to Rp.500,000,000,-
30% personal income over Rp.500,000,000,-