Double taxation agreement (DTA)

In one sentence. The treaty between Indonesia and your country that reduces withholding on rent and lets you credit Indonesian tax at home; Indonesia has DTAs with Australia, the UK, most EU states, Russia and Kazakhstan among others.

A DTA (Indonesian: P3B — Persetujuan Penghindaran Pajak Berganda) allocates taxing rights between two countries. For property income the rule is nearly universal: Indonesia taxes first (at source), your country of residence second, with a credit for what was paid.

In practice: without a DGT form (residency certificate filed through the withholding agent) a non-resident pays 20% under PPh 26; with it, the treaty rate. At home you declare the income and credit the Indonesian tax using the bukti potong slip: in Australia the foreign income tax offset, in the UK foreign tax credit relief, and so on.

A separate topic is CFC rules if the villa sits in a PT PMA: the company may count as a controlled foreign corporation and its profit be taxed in your hands at home. Country-by-country cases are in the articles.

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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