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Bali News

Paying a Fair Share

Bali Aims to Tax all Commercial Villa Operations by Enlisting Help from the Bali Villa Association


Bali News: Paying a Fair Share
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(12/2/2011)

The Hotel and Restaurant Tax and Entertainment Tax (PHR) are an important source of revenues for the regional administrations in Bali. The Revenue department for the Badung region of Bali (Dispenda) is pledging to optimize the collection of PHR, securing the substantial loss revenue potential represented by villas in Bali that are not paying their taxes.

The chief of Dispenda for Badung, I Wayan Adi Arnawa, told The Bali Post on Monday, November 11, 2011, that commercial villas qualify as tourist accommodation and, as such, should be taxed on their sales.

The former chief of the Badung Regional Enforcement Agency (Kasastpol PP), freely admitted that many villas in his region of south Bali were operating without the required licenses. In order to collect accurate data on villa operations, the Badung authorities are seeking the assistance of the Bali Villa Association (BVA). “Through the BVA we hope that all villa operating not for personal use but on a commercial basis can be inventoried in order to pay taxes,” said Arnawa in the company of the Secretary for Dispenda Bandung.

Arnawa denied that tax liability is an identical issue with efforts underway to legalize and register unlicensed villas. He explained that all financial transactions are subject to taxation, regardless of whether or not the subject villa is legally licensed.

He also explained that by involving the BVA his office desires to see that all commercial villas will register with the tax office and obtain an official tax number (NPWD). Once a villa has an official tax registration it is required to undertake regular tax reports and file them with the Dispenda before the 15th of each month covering the previous months sales activities.
 


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