Reviewed by Florent Delente, Founder, ILA Global Consulting. Last updated: October 2026.
A PT PMA pays corporate income tax at 22% of taxable profit, and if its annual turnover is IDR 50 billion or less, the profit linked to the first IDR 4.8 billion of turnover is taxed at half rate, 11%. Every foreign tourist entering Bali pays a one-time levy of IDR 150,000 per person, about USD 8, before leaving Indonesia (Love Bali FAQ). A digital nomad becomes taxable in Indonesia mainly through the 183 day residency rule: more than 183 days in Indonesia in any 12 months makes you a tax resident, and a residence permit valid for more than 183 days, including the E33G remote worker KITAS, makes you a resident from the day you arrive.
This guide is for foreign founders and finance managers of PT PMAs, for remote workers living in Bali and for anyone visiting the island, with the company rules first and a full worked example. If you are looking for personal income tax brackets, they are in our guide to Indonesian tax rates and are not repeated here.
If you want the monthly returns, bookkeeping and annual return handled for you, ILA’s accounting and tax compliance team runs PT PMA filings in Coretax from Bali and Jakarta.
Dollar figures use one rough rate, IDR 17,900 per USD (Katadata, 5 October 2026).
Which part of this guide applies to you?
| You are | What applies in 2026 | Read |
|---|---|---|
| Company or PT PMA owner | 22% corporate income tax (11% on part of the profit if turnover is up to IDR 50 billion), monthly withholding, VAT once registered, all filed in Coretax | Part 1 |
| Digital nomad or remote worker | Tax resident from arrival on a KITAS valid for more than 183 days such as the E33G, or after more than 183 days in any 12 months; residents are taxed on worldwide income | Part 3 |
| Tourist or visitor | IDR 150,000 levy once per trip, paid on Love Bali or at official counters; KITAS and KITAP holders are exempt | Part 2 |
Part 1: What taxes does a company or PT PMA pay in Indonesia?
The 0.5% final tax on turnover that many small companies used is closed to new PTs since PP 20/2026 took effect on 22 April 2026; PTs already using it keep it only until their three-year window ends. On top of income tax, a PT PMA withholds tax on salaries and supplier payments every month, charges VAT at an effective 11% once it is registered for VAT, and files everything in Coretax, the tax office’s online system. This part ends with a full worked example.
How much corporate income tax does a PT PMA pay in 2026?
The standard rate is a flat 22% of net taxable income, set by the Harmonisation of Tax Regulations Law (UU HPP, Law 7/2021) and unchanged in 2026 (PwC Worldwide Tax Summaries, reviewed 11 June 2026). A PT PMA is a resident Indonesian company, so it is taxed on its worldwide income, the same way as a locally owned PT.
| Regime | Who it applies to | Rate in 2026 |
|---|---|---|
| Standard corporate income tax | All resident companies, including PT PMAs | 22% of taxable profit |
| Article 31E small company reduction | Turnover up to IDR 50 billion (about USD 2.8 million) | 11% on the profit linked to the first IDR 4.8 billion of turnover, 22% on the rest |
| Listed company discount | Public companies with at least 40% of shares listed, plus conditions | 19% |
| 0.5% final tax on turnover (PP 55/2022 as amended by PP 20/2026) | Individuals, single-founder perseroan perorangan and cooperatives; PTs only if they were registered before 22 April 2026 and are still inside their three-year window | 0.5% of gross turnover |
| Branch profit tax | Permanent establishments (branches) of foreign companies, not PT PMAs | 20% on after-tax profit, reduced by most treaties |
Sources: PwC, corporate income; PwC, withholding taxes; PP 20/2026, JDIH BPK.
Groups with consolidated revenue of EUR 750 million or more also fall under Indonesia’s global minimum tax rules from 2025 (PwC); founder-run PT PMAs are far below that line.
How does the Article 31E 50% reduction work?
Article 31E of the Income Tax Law gives resident companies with gross turnover of up to IDR 50 billion a 50% cut in the tax rate, but only on the share of taxable profit that corresponds to the first IDR 4.8 billion of turnover (PwC). No application is needed; you apply it in the annual return.
The formula has two steps:
- Facility profit = taxable profit × (IDR 4.8 billion ÷ annual turnover)
- Tax = facility profit × 11% + remaining profit × 22%
If turnover is IDR 4.8 billion or less, the whole profit is taxed at 11%. Above IDR 50 billion, the facility disappears completely, so a company crossing that line pays 22% on everything.
Example. Turnover IDR 12 billion, taxable profit IDR 1.8 billion. Facility profit is 1.8 billion × 4.8 ÷ 12 = IDR 720 million, taxed at 11% = IDR 79.2 million. The remaining IDR 1.08 billion is taxed at 22% = IDR 237.6 million. Total corporate tax IDR 316.8 million (about USD 17,700), against IDR 396 million at a flat 22%. The effective rate is 17.6%.
Can a PT PMA still use the 0.5% final tax?
For a new company, no. This is the biggest change of 2026, and most guides online still describe the old rules.
Before April 2026. Under PP 55/2022, taxpayers with turnover up to IDR 4.8 billion a year paid a final 0.5% on turnover instead of income tax on profit. The regime was time-limited from registration: three tax years for a PT, four for a CV, firma, cooperative or perseroan perorangan, seven for individuals (Justisio summary of PP 55/2022 Article 59). PP 55/2022 did not list foreign-owned PTs among the excluded taxpayers, and the tax office applied the regime automatically to a new PT whose turnover fit the criteria (DDTCNews, 21 August 2025).
Since 22 April 2026. PP 20/2026, signed and in force on 22 April 2026, rewrote Article 57 so that only individuals, single-founder perseroan perorangan and cooperatives can use the 0.5% rate. It deleted Article 59, removing the time limit for those who remain eligible. CVs, firmas, ordinary PTs and village enterprises (BUMDes) registered before the new rule may keep the 0.5% rate only until their existing period ends; those registered afterwards go straight to the general regime (DGT slides on PP 20/2026; pajak.go.id commentary).
A PT PMA can never qualify as a perseroan perorangan, because that form is reserved for Indonesian citizens running micro and small businesses (PP 8/2021). So for foreign-owned companies the position in October 2026 is:
| Your PT PMA | Corporate tax regime |
|---|---|
| Registered on or after 22 April 2026 | General regime: 22%, with the Article 31E reduction if turnover is up to IDR 50 billion |
| Registered in 2024, turnover up to IDR 4.8 billion, already on 0.5% | 0.5% for tax years 2024, 2025 and 2026, then general regime from 1 January 2027 |
| Registered in 2023 or earlier | Three-year window already over; general regime |
| Registered between 1 January and 21 April 2026 | Probably 0.5% for 2026 to 2028 if turnover fits |
| Any year in which turnover exceeds IDR 4.8 billion | General regime from the following tax year |
Is the 0.5% rate always better? No. It is charged on turnover, so a loss-making or low-margin company can pay more than under the general regime. A PT with IDR 4 billion turnover and IDR 600 million profit pays IDR 20 million at 0.5% against IDR 66 million under Article 31E (600 million × 11%). With a IDR 200 million loss it still pays IDR 20 million at 0.5%, but nothing under the general regime, where the loss can be carried forward for five years (PwC, deductions).
Which taxes does a PT PMA withhold every month?
Most monthly work is withholding: deducting tax from payments and paying it over on the recipient’s behalf. Since 1 January 2025, withholding slips (bukti potong) and returns are prepared in Coretax DJP.
| Tax | What it covers | Rate |
|---|---|---|
| PPh 21 | Salaries, bonuses and fees paid to resident individuals, including foreign staff who are tax resident | Monthly TER table (average effective rate) from January to November; December recalculated on the progressive 5% to 35% scale (PP 58/2023) |
| PPh 23 | Services, rent of assets other than land and buildings, royalties and interest paid to Indonesian companies and individuals | 2% on most services; 15% on royalties and interest; 100% higher if the recipient has no tax number |
| PPh 4(2) | Final tax on rent of land and buildings (office, warehouse, villa), construction services and some other items | 10% on rent of land and buildings |
| PPh 26 | Dividends, interest, royalties and service fees paid to non-residents, including salaries of non-resident foreign staff | 20%, reduced by a tax treaty with a valid certificate of domicile |
| PPh 25 | The company’s own monthly instalment of corporate tax | 1/12 of last year’s tax due after credits; nil in the first year for a new company |
| VAT | Output VAT on sales, once registered as a VAT-able entrepreneur (PKP) | 12% statutory, 11% effective for most supplies |
Sources: PwC, withholding taxes; DGT on PPh 25 instalments; UU HPP.
Two 2026 payroll points. Under PMK 105/2025, the government pays the PPh 21 of employees earning up to IDR 10 million a month in five sectors during 2026, and tourism is one of them. If your PT PMA runs tourism activities in Bali, check whether your business code and staff qualify. Social security runs alongside payroll tax; our BPJS guide gives the 2026 rates.
When must a PT PMA register for VAT, and what rate applies in 2026?
A company must register as a VAT-able entrepreneur (Pengusaha Kena Pajak, PKP) once its taxable supplies exceed IDR 4.8 billion in a year (DGT on the PKP threshold). Many PT PMAs register voluntarily below that, because corporate clients want VAT invoices and only a PKP can reclaim input VAT.
The rate. The statutory VAT rate rose to 12% on 1 January 2025 under UU HPP. Under PMK 131/2024, most goods and services are taxed on a deemed base of 11/12 of the price, so the effective rate stays at 11%; the full 12% on the full price applies only to luxury goods also subject to luxury sales tax (PPnBM) (PwC, other taxes). The Finance Minister said in late 2025 that a VAT cut was being studied, but no change had been issued for 2026 (Bisnis, 15 December 2025).
On a IDR 100,000,000 invoice, the base is IDR 91,666,667 and the VAT IDR 11,000,000.
E-Faktur in 2026. Tax invoices are issued in Coretax. The older e-Faktur desktop application can still be used for standard invoices under KEP-54/PJ/2025, but cancellations and replacements must go through Coretax, and the VAT return itself is filed in Coretax (DDTCNews, 2 April 2026). A PKP files a VAT return every month, including nil months.
Exports of goods and some exported services are zero-rated, and services bought from abroad carry self-assessed VAT (PwC, other taxes). Our VAT and NPWP registration service handles PKP registration.
What are the monthly and annual tax deadlines under Coretax?
PMK 81/2024, the Coretax procedures regulation in force since 1 January 2025, moved most monthly payment deadlines from the 10th to the 15th of the following month. Withholding returns are due 20 days after the month ends (DDTCNews, 12 April 2026). When a deadline falls on a weekend or public holiday, it moves to the next working day.
| Obligation | Pay by | File by | Notes |
|---|---|---|---|
| PPh 21/26 on payroll | 15th of the following month | 20th of the following month | Give each employee an annual withholding slip after year end |
| PPh 23, PPh 26, PPh 4(2) (unified withholding return) | 15th of the following month | 20th of the following month | One “unifikasi” return in Coretax |
| PPh 25 instalment | 15th of the following month | Payment with a state receipt number (NTPN) counts as the return | Nil in a new company’s first year |
| VAT | End of the following month, before filing | End of the following month | File even when nil |
| BPJS health and employment contributions (not tax) | 10th of the month | Monthly payroll report | See our BPJS guide |
| LKPM investment report (not tax) | n/a | 15 April, 15 July, 15 October, 15 January | Filed in OSS |
| Annual corporate income tax return | Any balance (PPh 29) before filing | End of the 4th month after year end: 30 April 2027 for 2026 | Can be extended by up to 2 months by notification; financial statements attached |
| Transfer pricing documentation | n/a | Available within 4 months after year end | Only if the thresholds below are met |
| Directors’ personal annual returns | Any balance before filing | 31 March | Separate from the company |
Sources: PwC, tax administration; Ortax on PMK 81/2024; SmartLegal on BKPM Regulation 5/2025.
LKPM is not a tax report, but it sits in the same calendar. Under BKPM Regulation 5/2025 the deadline moved from the 10th to the 15th of the month after each quarter, and small businesses report every six months instead of quarterly (SmartLegal). The authorities compare LKPM figures with tax returns, so they must match. Our PT PMA setup guide covers the other compliance duties.
How are dividends taxed when profits leave the company?
| Shareholder | Tax on dividends from a PT PMA |
|---|---|
| Indonesian company | Exempt under UU HPP, with no minimum shareholding |
| Individual who is an Indonesian tax resident (for example a founder living in Bali on a KITAS) | 10% final, or exempt if reinvested in Indonesia within the period and in the instruments set by the Minister of Finance |
| Foreign company or non-resident individual | 20% PPh 26, reduced by treaty |
| French company holding a substantial stake | 10% under the France and Indonesia treaty (15% for portfolio holdings) |
Sources: PwC, income determination; PwC, withholding taxes and treaty table; UU HPP.
Most treaties signed with European countries, Singapore and the US follow the same 10% and 15% pattern for dividends; the Netherlands treaty goes down to 5% for substantial holdings (PwC treaty table). The reduced rate only applies if the recipient is the beneficial owner and gives the PT PMA a valid certificate of domicile on the tax office’s form before the payment; otherwise the company must withhold 20% (PwC). Personal tax for founders is covered in our Indonesia tax guide.
Branches. A foreign company operating through a branch instead of a PT PMA pays 20% branch profit tax on after-tax profit, reduced by treaty, unless the profit is reinvested in Indonesia by the following year (PwC).
Which expenses can a PT PMA deduct?
A cost is deductible if it is incurred to earn, collect or maintain taxable income (the “3M” rule) and is backed by invoices, contracts and payment evidence.
| Usually deductible | Not deductible |
|---|---|
| Salaries, bonuses, THR and the employer’s BPJS contributions | Corporate income tax itself |
| Benefits in kind given to staff, which are taxable for the employee since UU HPP, with listed exceptions | Tax penalties, fines and late payment interest |
| Rent, utilities, marketing, professional fees | Private expenses of shareholders or directors |
| Depreciation: 4, 8, 16 or 20 year groups for equipment and vehicles; 20 years for permanent buildings | Most donations and gifts, except specific categories |
| Interest, within the 4:1 debt to equity limit and arm’s length rules | Provisions and reserves, except in certain sectors |
| Entertainment, if listed in a nominative list attached to the annual return | Costs linked to income already taxed under a final regime (for example rental income taxed at 10%) |
| Tax losses carried forward for up to 5 years | Excessive or non-arm’s length payments to related parties |
Sources: PwC, deductions; UU HPP.
The most common problem in founder-run PT PMAs is personal spending through the company (the director’s villa, a private car, school fees): not deductible, and open to reclassification as a hidden dividend.
What do transfer pricing rules mean for a small PT PMA?
Any transaction with a related party (your foreign parent, a sister company, a shareholder) must be priced as if the parties were independent. Under PMK 172/2023, a company must prepare a master file and local file if, in the previous year, its turnover exceeded IDR 50 billion, or its related party transactions exceeded IDR 20 billion for goods or IDR 5 billion for services, interest or intangibles, or it dealt with a related party in a jurisdiction taxing below 22% (InCorp). The documents must exist within four months after year end and be handed over within one month of a request during an audit (MUC Consulting).
Below the thresholds the arm’s length rule still applies. Management fees and royalties charged by a foreign parent are a classic audit target: keep a written agreement, proof the service was provided and a reasoned price.
What penalties apply for late filing or late payment?
Penalties come from the General Tax Provisions Law (UU KUP) as amended by UU HPP. Interest rates are reset monthly; October 2026 rates are from KMK 47/MK/EF.2/2026.
| Failure | Penalty |
|---|---|
| Late annual corporate return | IDR 1,000,000 |
| Late VAT return | IDR 500,000 per return |
| Late monthly withholding return | IDR 100,000 per return |
| Late payment, or underpayment you correct yourself (Articles 8(2) and 9(2a)) | 1.01% per month in October 2026, up to 24 months; part of a month counts as a full month |
| Underpayment found in a tax assessment (Article 13(2)) | 1.84% per month in October 2026, up to 24 months |
| Failure to issue a tax invoice, or late invoice, by a PKP (Article 14(4)) | 1% of the VAT base |
| Other assessment cases under Article 13(3) | Surcharge of up to 75% of the tax |
Sources: PwC, tax administration; KMK 47/MK/EF.2/2026 via DDTC; UU HPP.
The tax office can assess up to five years back (PwC), so keep five years of records. The indirect cost is often worse than the fine: unfiled returns block the tax clearance needed for KITAS renewals and company amendments, and a refund claim almost always triggers a full audit.
Worked example: one year of tax for a Bali PT PMA
A PT PMA in Denpasar, set up in 2023 and registered for VAT, sells IT development services to Indonesian companies. Tax year 2025, filed in 2026.
| Item | Amount (IDR) | About USD |
|---|---|---|
| Turnover (excluding VAT) | 12,000,000,000 | 670,000 |
| Taxable profit after adjustments | 1,800,000,000 | 100,600 |
| Profit taxed at 11% (1.8 billion × 4.8 ÷ 12) | 720,000,000 | |
| Tax at 11% | 79,200,000 | |
| Profit taxed at 22% | 1,080,000,000 | |
| Tax at 22% | 237,600,000 | |
| Corporate income tax due | 316,800,000 | 17,700 |
| Less: PPh 23 withheld by clients (2% of 12 billion) | (240,000,000) | |
| Less: PPh 25 instalments paid during 2025 (12 × 5,000,000, based on the 2024 return) | (60,000,000) | |
| Balance (PPh 29) to pay before 30 April 2026 | 16,800,000 | 940 |
| New PPh 25 instalment from the month after filing (316.8 million tax minus 240 million PPh 23 credits, divided by 12) | 6,400,000 a month | 360 |
VAT over the same year. Output VAT is 12 billion × 11/12 × 12% = IDR 1,320,000,000. With IDR 4 billion of purchases from PKPs, input VAT is IDR 440,000,000, so the company paid IDR 880,000,000 (about USD 49,200) over twelve monthly returns. VAT only becomes a cost when invoices are missing or late.
Paying a dividend. After-tax profit is roughly IDR 1.48 billion. The company pays a IDR 1 billion dividend to its French parent company, which owns 100%. With a valid certificate of domicile, PPh 26 is 10%, IDR 100 million. Without it, the company must withhold 20%, IDR 200 million, and the parent then has to claim the difference back.
And the old 0.5% regime? Never available to this company: the 0.5% rate was only ever for turnover under IDR 4.8 billion.
Four tax mistakes that cost PT PMAs money
- Assuming a new PT gets 0.5% “for the first three years”. Not since 22 April 2026.
- Not withholding on supplier payments. Unwithheld PPh 23 or PPh 4(2) is collected from your company, plus interest.
- Paying dividends abroad without the treaty form. The 20% default applies, and recovering the extra is slow.
- Skipping nil returns. A PKP files VAT every month, and the annual return is due even with a loss.
Part 2: How does the Bali tourist tax work in 2026?
Since 1 July 2025 the Bali tourist levy rules sit in Bali Provincial Regulation (Perda) 2/2025 and Governor Regulation (Pergub) 25/2025, which added sanctions such as being refused entry to tourist sites (Perda Bali 2/2025).
The Bali tourist levy at a glance
| Item | What applies in 2026 |
|---|---|
| Amount | IDR 150,000 per person, about USD 8 |
| How often | Once per trip, before you leave Indonesia |
| Who pays | Foreign tourists entering Bali, directly from abroad or via another Indonesian city |
| Legal basis | Law 15/2023 on Bali Province, Perda Bali 2/2025, Pergub Bali 25/2025, Governor Decree 699/03-L/HK/2025 |
| Sanctions for not paying | Verbal warning, written warning and/or refusal of service at tourist attractions |
Sources: Love Bali FAQ, Perda Bali 2/2025, Pergub Bali 25/2025.
Is the Bali tourist tax a tax or a levy?
Legally it is a levy (pungutan), not a tax. The Indonesian name is Pungutan bagi Wisatawan Asing, often shortened to PWA. It was created under Article 8 of Law 15/2023 on Bali Province and started on 14 February 2024 (Tempo). The money is earmarked for protecting Balinese culture and nature, improving the quality of tourism and running the levy system itself (Perda Bali 2/2025, Articles 7 and 10A).
It has nothing to do with Indonesian income tax and does not affect your tax residency (see Part 3, and our guide on how to become a tax resident in Bali). It is also separate from your visa: paying the levy does not give you permission to enter Indonesia, and holding a visa on arrival does not mean you have paid it. See our Bali visa on arrival guide, or let our visa on arrival service handle the entry paperwork.
What changed with Perda 2/2025 and Pergub 25/2025?
The levy was first set up by Perda 6/2023 and Pergub 2/2024. Low compliance pushed the province to rewrite both, and the amended texts took effect on 1 July 2025 (Perda Bali 2/2025; Pergub Bali 25/2025):
- Sanctions now exist: a verbal warning, a written warning and/or refusal of service at tourist attractions (Perda 2/2025, Article 16A). Tourists who cannot show proof of payment must pay on the spot (Article 6).
- Indirect arrivals are written in: the levy expressly covers foreigners who reach Bali through another part of Indonesia (Article 4A).
- Payment can happen during your stay: if you did not pay before the arrival checkpoint, you can pay on arrival, during your stay or when leaving Bali.
- Proof gets scanned at arrival points, hotels, attractions and other locations.
- Hotels and agents are paid to collect: registered partners and endpoints can earn a service fee (imbal jasa) of up to 3% of the transactions they process.
- Duplicate payments can be refunded if you paid twice for the same arrival date.
The last four points come from Pergub 25/2025. Criminal penalties such as short detention were discussed during the revision, but the final Perda 2/2025 only contains administrative sanctions.
Who has to pay the Bali tourist levy?
The test is simple: are you a foreign national entering Bali as a tourist? If yes, you pay. Nationality does not matter, and there is no published exemption for children, so each family member with a foreign passport needs a voucher.
| Your situation | Do you pay? | What to do |
|---|---|---|
| Holiday on a visa on arrival, e-VOA or visa exemption | Yes | Pay on Love Bali before you fly |
| Arriving in Bali on a domestic flight from Jakarta, Lombok or elsewhere | Yes | Same as above; the levy covers indirect arrivals |
| Cruise passenger stopping in Bali | Yes | Pay yourself on Love Bali or through your cruise agent |
| KITAS or KITAP holder (investor, work, spouse, retirement, second home, remote worker) | No | Show your stay permit to the officer |
| Diplomatic, official, student or family unification visa holder, or aircraft or ship crew | No | Show your visa or crew documents |
| Golden Visa or other non-tourist visa (for example a business visit visa) | No, after approval | Apply for the exemption on Love Bali before arrival |
| Indonesian citizen | No | The levy only applies to foreigners |
Sources: Love Bali FAQ, Perda Bali 2/2025, Article 4A.
How do KITAS, KITAP and Golden Visa holders claim the exemption?
KITAS and KITAP holders do not need to file anything: show your permit to the officer when asked. Most permits are now issued electronically, so keep the PDF of your e-ITAS or e-ITAP on your phone and a printed copy in your bag. An expired KITAS gives you no exemption and creates a bigger immigration problem; our KITAS and KITAP page explains the options.
Golden Visa and other non-tourist visa holders must apply through the Love Bali system and wait for approval. The Bali Tourism Office has said applications should be submitted at least five days before arrival in Bali (Consulate General of India in Bali). Verification takes a few working days (Tempo). If you are landing in less than five days, the safer option is to pay the IDR 150,000.
How to pay the Bali tourist tax online, step by step
- Open the official site, lovebali.baliprov.go.id. The domain must end in .baliprov.go.id. Ignore lookalike sites and apps that charge a “service fee” on top.
- Enter your details: full name exactly as it appears in your passport, passport number, nationality, email address and planned arrival date (Pergub Bali 25/2025).
- Pay by Visa, Mastercard, American Express or JCB card, bank transfer, virtual account, UnionPay or QRIS (Love Bali FAQ). Cash is not accepted anywhere.
- Save the voucher. It comes by email with a QR code. Keep a screenshot offline.
- Keep it for the whole trip. It can be scanned at any point during your stay.
If you typed the wrong email, the payment can still be traced through your passport data (Love Bali FAQ). The group form takes up to 9 people per payment.
Where else can you pay?
Cashless only: at counters at Ngurah Rai airport and Bali’s sea ports on arrival or departure, at registered hotels, villas, travel agents and tourist attractions during your stay, or through cruise agents before arrival in port (Love Bali FAQ; Pergub Bali 25/2025).
Is the levy enforced in 2026?
Yes, more than before, though Bali still prefers persuasion over punishment.
| Period | What happened |
|---|---|
| From 26 March 2024 | Spot checks at Uluwatu, Tanah Lot, Ulun Danu Beratan and Tampaksiring with the Tourism Police (Bali Tourism Office) |
| Full year 2025 | About IDR 369 billion collected; about 35.4% of foreign tourists paid (Bali Post) |
| August 2026 | Compliance up to about 43%; the province is working with immigration and international airlines to inform travellers before and on arrival (Bali Post) |
In practice you will not be deported for missing the levy, but you can be stopped at a major temple or attraction and refused entry until you pay, or asked for your voucher at hotel check-in. Governor Wayan Koster has said enforcement should not become counterproductive, so expect checks to increase gradually (Bali Post).
Levy mistakes to avoid
- Paying on a copycat site. Only the .baliprov.go.id domain and official counters and endpoints count.
- Assuming your visa covers it. The visa on arrival fee and the levy are paid to two different authorities.
- Typos in the passport number. A wrong digit can mean paying again on the spot and claiming a refund later.
- Villa operators not registering as an endpoint. Registering on Love Bali lets a licensed villa or tour business collect the levy for guests and earn the service fee; our villa licensing page covers the licences you need first.
Part 3: Do digital nomads pay tax in Indonesia?
Yes, in many cases: Indonesia taxes you once you are a tax resident.
When does a digital nomad become a tax resident?
Under Article 2(3) of the Income Tax Law you are a resident if you live in Indonesia, if you are physically here for more than 183 days in any 12 month period, or if you are here during a tax year and intend to reside here. The 183 days need not be consecutive, the period can cross two calendar years, and part of a day counts as a day.
The Directorate General of Taxes (DGT) restated these tests in PER-23/PJ/2025, issued in December 2025. The documents that show an intention to reside include an ITAS (the KITAS) or a limited stay visa valid for more than 183 days, a KITAP, a contract or lease of more than 183 days, and proof that your family has moved here (DDTCNews, 24 August 2026). So the E33G, a one-year ITAS, makes you resident from arrival. If you stay on visit visas for less than 183 days in any 12 months and earn nothing from Indonesia, you are generally outside Indonesian income tax.
Is foreign income tax free on the E33G visa?
We found no legal basis for that. The E33G rests on immigration rules (Permenkumham 22/2023; Permenkumham 11/2024), and an immigration regulation cannot exempt income from tax. KPMG Indonesia said in December 2024 that “there is no specific regulation” on the taxation of remote workers (Pajak.com, December 2024). We found no immigration circular or DGT ruling that sets these rules aside for E33G holders. In June 2026 the Singaraja tax office told visa agents that residents report income from Indonesia and from abroad, and that tax paid abroad can be credited (DGT, KPP Pratama Singaraja, June 2026). Indonesia does not tax on a remittance basis either: foreign income is taxable for a resident whether or not you transfer it to Indonesia.
What must you file once you are resident?
Register for a tax number (NPWP) in Coretax by the end of the month after your income passes the non-taxable allowance, and file your annual return by 31 March, reporting worldwide income and your assets and debts at 31 December, including foreign accounts and property. Pay the balance with the return, then monthly instalments (PPh 25) by the 15th of each month (PwC, Tax administration), and claim foreign tax credits or treaty relief with proof of tax paid abroad.
Treaty rules, the French case and a worked example are in our digital nomad visa and tax guide. If you already know you are resident, ILA’s tax declaration service registers you and files your return in Coretax.
Get your tax set up correctly from the first month
Most PT PMA tax problems start in the first year: no PKP registration, withholding never set up in Coretax, or a founder expecting the 0.5% rate. ILA’s accounting services cover bookkeeping, monthly withholding and VAT returns, the annual return and LKPM, and our tax team reviews treaty claims and related party pricing. For a 2026 checklist specific to foreign-owned companies, see also our PT PMA taxation overview. If you live in Bali as a remote worker, the same team looks at your visa, contract, home country ties and treaty, tells you where you are taxable and files what is needed in Coretax, in English or French. Contact us to review your position before the next annual return.
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Frequently asked questions
What is the corporate income tax rate in Indonesia in 2026?
22% of taxable profit. Companies with turnover up to IDR 50 billion pay 11% on the share of profit linked to the first IDR 4.8 billion of turnover, and qualifying listed companies pay 19%.
Can a new PT PMA use the 0.5% final tax?
No. Since PP 20/2026 took effect on 22 April 2026, only individuals, single-founder perseroan perorangan and cooperatives can opt in. PTs registered before that date keep the rate until their three-year window ends.
When is the annual corporate tax return due?
By the end of the fourth month after year end: 30 April for a calendar year, with any balance paid first. A two-month extension is available by notification.
What are the monthly tax deadlines in Coretax?
Withholding taxes and PPh 25 are paid by the 15th of the following month and withholding returns filed by the 20th. VAT is paid and filed by the end of the following month.
When does a PT PMA have to charge VAT?
Once registered as a PKP: mandatory above IDR 4.8 billion of annual taxable supplies, voluntary below. The effective rate is 11%, or 12% for luxury goods.
How much tax is withheld on dividends paid to a foreign shareholder?
20% under domestic law, reduced by treaty. For a French parent company with a substantial holding, the treaty rate is 10%, provided the certificate of domicile is in place before payment.
How much is the Bali tourist tax in 2026?
IDR 150,000 per person. The amount has not changed since the levy started on 14 February 2024 and is confirmed in Perda Bali 2/2025.
I have a KITAS. Do I need to register on Love Bali?
No. KITAS and KITAP holders are exempt and only need to show their permit to the officer. Golden Visa and other non-tourist visa holders are the ones who must apply on Love Bali.
Do digital nomads pay tax in Bali?
If they are Indonesian tax residents, yes, on worldwide income at 5% to 35%. You become resident with a KITAS valid for more than 183 days, a long lease or more than 183 days of presence in any 12 months.
Sources
- JDIH BPK: Law 7/2021 on the Harmonisation of Tax Regulations (UU HPP)
- JDIH BPK: PP 55/2022 on income tax adjustments
- JDIH BPK: PP 20/2026 amending PP 55/2022 (22 April 2026)
- DGT: slides on PP 20/2026 and the 0.5% final tax
- DGT: PP 20/2026, 0.5% rate for individual SMEs without time limit
- Justisio: changes for PT and CV after PP 20/2026
- DDTCNews: can a PT set up in late 2024 use the 0.5% rate (21 August 2025)
- JDIH BPK: PP 8/2021 on company capital and micro and small business companies
- JDIH BPK: PP 58/2023 on PPh 21 withholding rates (TER)
- DGT: PMK 131/2024, the 11 and 12 percent VAT rate
- DGT: VAT registration threshold for small entrepreneurs
- DGT: PPh 25 monthly instalments
- Coretax DJP portal
- Ortax: payment deadlines under PMK 81/2024
- DDTCNews: PPh 21 payment and filing deadlines (12 April 2026)
- DDTCNews: e-Faktur desktop limits under KEP-54/PJ/2025 (2 April 2026)
- DDTC: KMK 47/MK/EF.2/2026, interest rates for October 2026
- Bisnis: PMK 105/2025, PPh 21 borne by government in five sectors in 2026 (5 January 2026)
- Bisnis: Finance Minister on the 2026 VAT rate (15 December 2025)
- PwC Worldwide Tax Summaries: Indonesia, taxes on corporate income (reviewed 11 June 2026)
- PwC Worldwide Tax Summaries: Indonesia, withholding taxes (reviewed 11 June 2026)
- PwC Worldwide Tax Summaries: Indonesia, tax administration (reviewed 11 June 2026)
- PwC Worldwide Tax Summaries: Indonesia, income determination (reviewed 11 June 2026)
- PwC Worldwide Tax Summaries: Indonesia, deductions (reviewed 11 June 2026)
- PwC Worldwide Tax Summaries: Indonesia, other taxes (reviewed 11 June 2026)
- InCorp: transfer pricing documentation in Indonesia
- MUC Consulting: transfer pricing document deadlines in PMK 172/2023
- JDIH BPK: BKPM Regulation 5/2025
- SmartLegal: new LKPM schedule under BKPM Regulation 5/2025 (14 October 2025)
- Katadata: rupiah at IDR 17,916 per USD (5 October 2026)
- Love Bali, FAQ (Bali Provincial Government)
- Peraturan Daerah Provinsi Bali Nomor 2 Tahun 2025 (peraturan.go.id)
- Peraturan Gubernur Bali Nomor 25 Tahun 2025 (Love Bali)
- Bali Tourism Office: inspection of the tourist levy at tourism destinations
- Consulate General of India in Bali: Foreign Tourist Levy notice
- Tempo: 7 categories of foreign tourists exempt from Bali’s tourism tax
- Bali Post: Kepatuhan pembayaran PWA capai 43 persen (14 August 2026)
- PER-23/PJ/2025 on domestic and foreign tax subjects, DDTC legal database
- DDTCNews: When a foreigner becomes a resident taxpayer (24 August 2026)
- Permenkumham 22/2023 on Visas and Stay Permits, JDIH BPK
- Permenkumham 11/2024 amending Permenkumham 22/2023, JDIH BPK
- Pajak.com: KPMG on remote workers’ tax position (December 2024)
- DGT: KPP Singaraja briefs sponsors and visa agents on foreigners’ tax (June 2026)
- PwC Worldwide Tax Summaries: Indonesia, Tax administration for individuals (reviewed 11 June 2026)
