Taxes
PPN (VAT) and the PMK 90/2025 incentive
PPN (НДС) и льгота PMK 90/2025 · Pajak Pertambahan Nilai (VAT) & PMK 90/2025 incentive
PPN (Pajak Pertambahan Nilai) is VAT at 11% (the HPP law provides for 12% with phased application). It arises when you buy a building from a VAT-registered developer; on a land lease from an individual and a construction contract with a small contractor VAT may not apply, or apply only to the works. Check whether the contract price includes VAT.
The PMK 90/2025 incentive: the state bears 100% of VAT on the first IDR 2 billion of a new home priced up to IDR 5 billion, handed over in 2026. Conditions: the buyer is an individual with an NPWP, including foreigners holding KITAS/KITAP; the property is a completed house or apartment transferred for the first time; benefit up to IDR 220 million. Excluded: leasehold (no transfer of ownership), purchase via PT PMA, land without a building.
The typical Bali buyer's mistake is counting on the incentive when buying a leasehold villa from a developer. Conditions and worked numbers are in the article.
Read more in the blog
- Indonesia's VAT incentive on housing: when it works for a foreigner and when it does not
- Property taxes in Bali: what owners actually pay
- How Much Does a Bali Villa Cost in 2026: Prices by Area and What Drives Them
Related terms
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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