Guide to Property Taxes in Indonesia
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 20.00% | 20.00% | 20.00% |
Nonresidents are liable to pay tax on Indonesian-sourced income. Married couples are generally taxed jointly but may opt for separate taxation if there is a prenuptial agreement between husband and wife.
Nonresidents are taxed at a flat rate of 20%. Double taxation agreements (DTAs) between Indonesia and other countries may reduce this rate to 10%.
Rental Income Tax
The rental income of nonresidents is taxed at a final withholding rate of 20% of gross income unless a double taxation treaty (DTT) states otherwise.
Corporate Taxation
Income Tax
Income and capital gains earned by companies are taxed at a flat rate of 25%. Income-generating and operating expenses are deductible when computing taxable income.
Capital Gains Tax
Capital gains are typically taxed at ordinary tax rates alongside other income of the individual. For nonresidents, the capital gains tax is fixed at 20%.
Buying and Selling Costs/Taxes
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Transaction costs |
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| Who Pays? | ||
| Property Transfer Tax | 5.00% | buyer |
| Notary Fees | 1.00% - 2.50% | buyer |
| Legal Fees | 0.50% - 1.50% | buyer |
| Real Estate Agent Fee | 3.00% - 5.00% | seller |
| Costs Paid by Buyer | 6.50% - 9.00% | |
| Costs Paid by Seller | 3.00% - 5.00% | |
| ROUNDTRIP TRANSACTION COSTS | 9.50% - 14.00% | |
| Source: Global Property Guide, PWC | ||
Property Holding Tax
Property Tax (Pajak Bumi dan Bangunan, PBB)
Property tax is levied at progressive rates on the assessed value of the property.
Property Tax Rates
| Tax Base, IDR (US$) | Tax Rate |
| Up to 200 million (US$13,761) | 0.01% |
| 200 million – 2 billion (US$137,611) | 0.10% |
| 2 billion – 10 billion (US$688,054) | 0.20% |
| Over 10 billion (US$688,054) | 0.30% |
| Source: Global Property Guide, KPMG | |