PPh Final (tax on rental income)

In one sentence. Indonesia's tax on rental income: 10% of gross rent for tax residents (PPh 4(2)) and 20% withholding for non-residents (PPh 26), reduced under a double-tax treaty.

Villa rental income is taxed in Indonesia at source. For a resident (an Indonesian, or a foreigner with an NPWP living there over 183 days) — a final tax of 10% of gross rent under PPh Article 4(2). For a non-resident — 20% withholding under PPh 26 on gross income; the rate drops where a tax treaty exists between Indonesia and your country and you file the DGT residency form.

Who withholds: a corporate tenant or the management company acting as agent; it remits the tax and issues you a withholding slip (bukti potong), which you need for the credit at home. Separate from PPh is the 10% local accommodation tax (NPWPD), paid by the guest.

Tax is then due in your country of residence with a credit for the Indonesian tax: worked cases for Australia (20% non-resident rate and the treaty credit), the US, UK, EU, Singapore and the UAE are in the articles. Realistic net yield after all taxes and management: 10–15% for a managed villa.

Updated: 2026-09-20. Not a public offer. Regulations change — we cite enacted acts only and update the entry when they do.

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