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A Little Something for the Waiter and the Taxman

Small Restaurants and Warungs in Bali with Turnovers of Rp.10 million per Month to Pay Taxes

(8/22/2011)  In an effort to increase tax revenues for the Badung regency, restaurants and food stalls that escaped paying hotel and restaurant taxes in the past are now destined to make a monthly tax payment to the regional tax office.

After much debate a decision that would have set an initial tax threshold at Rp. 3 million (US$340) was raised to Rp. 10 million (US$1140). This means, in an effort to protect small business, only warungs and restaurants with sales of more than Rp. 10 million a single month will be required to collect and pay the 10% restaurant tax.

The new, stricter tax regime will be introduced in September 2011.