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Bali Property Taxes on the Rise

Luxury Taxes Being Applied on Villas and Apartment in Bali as Government Strives to Increase Tax Revenues


Bali News: Bali Property Taxes on the Rise
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(7/2/2011)

Bisnis Bali reports that many real estate entrepreneurs are complaining about the multifarious range of taxes imposed on the property sector in Bali.

“Those charged with luxury taxes are indeed luxury properties. Properties purchased on mortgages (BTN and KPR) should not incur these taxes,” explained the Bali representative of the Directorate General of Taxation, Zulfikir Tjajar, on Monday, June 27, 2011.

According to Zulfikir, all tax liabilities charged to taxpayers are in keeping with current tax regulations. Property tax rates are the same nationwide. If a building is deemed luxurious – such as an apartment, condotel and similar type of accommodation – they must pay sales tax (PPN) and management tax of lands and buildings (BPHTB).

Zufikir reminded the public to examine their financial capability to meet tax requirements when buying a property.

The Bali tax official revealed that Bali currently has 400,000 registered taxpayers comprised of both individuals and corporations. Tax revenue targets for the first half of the year have hit 65%, an improvement of 56.44% at this same point last year.


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