Bali villa rental tax: the 10% PBJT, from the statute and the by-laws

A villa is on the statute’s list of hotels by name, and so is a private house let to guests. The rate is set regency by regency — here is what the two by-laws we read say.

Written from the Indonesian originals · Editor-reviewed · Law as read on 2026-09-25

By the balipropertyguide.com editorial team · Published 2026-09-25 · Last reviewed 2026-09-25 · 8 min read

5 primary sources cited on this page. How we check what is on this site

PBJT, hotel tax, villa tax, PB1: eleven questions, one tax

The tax on a villa booking in Bali has had several names, and listings, booking platforms and accountants still use all of them. Since Law 1/2022 it is one thing: PBJT on hotel services, set by each regency or city within a national ceiling. The table answers the usual questions from the statute and from the two regional by-laws we have read.

What people call it	What it is	What the law says
“PBJT”	Pajak Barang dan Jasa Tertentu — tax on certain goods and services	Hotel services are one of its five objects.Law 1/2022 (HKPD) art. 53(1)
“Hotel tax”, “villa tax”, “PB1”	PBJT on hotel services (Jasa Perhotelan)	Covers villas, and private residences used as a hotel.Law 1/2022 (HKPD) art. 53(1)
“Is my villa a hotel?”	The list in the statute	Villa is item (c); a private residence used as a hotel is item (j).Law 1/2022 (HKPD) art. 53(1)
“How much is the villa tax?”	National ceiling	At most 10%, set by by-law.Law 1/2022 (HKPD) art. 58(1)
“Villa tax Denpasar / Sanur”	Kota Denpasar	10%.Denpasar Perda 5/2023 art. 24(1)
“Villa tax Tabanan”	Kabupaten Tabanan	10%.Tabanan Perda 13/2023 art. 29(1)(c)
“Villa tax Canggu / Ubud”	Badung, Gianyar	By-laws not obtained; the ceiling is 10%.Law 1/2022 (HKPD) art. 58(1)
“10% of what?”	The base	The amount paid by the guest.Law 1/2022 (HKPD) art. 57(1)
“Who pays it, me or the guest?”	Subject and taxpayer	The guest bears it; the operator making the sale is the taxpayer.Law 1/2022 (HKPD) art. 56
“Airbnb villa tax”	Same list	The by-laws list the kind of accommodation, not the booking channel.Denpasar Perda 5/2023 art. 18(1)
“Tax on my rental income”	A different tax	National income tax on the owner. Not covered here.Our analysis — no regulation sets this

“PB1” is how the market still refers to it; the statute does not use that name. Denpasar’s 2023 by-law revoked the city’s separate hotel-tax by-law of 2011 when it replaced it with PBJT.

A villa is named in the statute, and so is your house

Law 1/2022 article 53(1) defines hotel services as accommodation and its supporting facilities at providers such as hotels, hostels, villas, guesthouses, bungalows, resorts, cottages, glamping — and, at item (j), tempat tinggal pribadi yang difungsikan sebagai hotel: a private residence used as a hotel (Law 1/2022 (HKPD) art. 53(1)). Denpasar’s by-law repeats the list word for word (Denpasar Perda 5/2023 art. 18(1)), and so does Tabanan’s (Tabanan Perda 13/2023 art. 23(1)).

Two things follow. There is no argument that a villa is not a hotel for this tax; it is on the list by name. And a house that is somebody’s home the rest of the year is on the list too, once it is let to paying guests. The listed exclusions are government dormitories, hospitals and care homes, education and religious lodging, travel agency services, and renting space inside a hotel — not private lettings.

The rate: a 10% ceiling, and 10% where we could read it

The statute caps PBJT at 10% and leaves the rate to by-law (Law 1/2022 (HKPD) art. 58(1)).

Jurisdiction	Hotel-services rate	Source
Kota Denpasar (Sanur)	10%	Denpasar Perda 5/2023 art. 24(1)
Kabupaten Tabanan	10%	Tabanan Perda 13/2023 art. 29(1)(c)
Kabupaten Badung (Canggu, Seminyak, Uluwatu)	Not obtained — ceiling 10%	Law 1/2022 (HKPD) art. 58(1)
Kabupaten Gianyar (Ubud)	Not obtained — ceiling 10%	Law 1/2022 (HKPD) art. 58(1)

Both by-laws we read sit at the ceiling. The statute sets a different band only for discotheques, karaoke, night clubs, bars and spas — 40% to 75% — and Denpasar and Tabanan both set 40% for those. A villa that runs a bar is a separate question for the bar.

On what, and from whom

The base is the amount paid by the guest (Law 1/2022 (HKPD) art. 57(1)); where there is no payment, it is the selling price of similar services in the region. The structure is that the guest bears it; the operator making the sale is the taxpayer (Law 1/2022 (HKPD) art. 56).

On a night billed at IDR 3,000,000, 10% is IDR 300,000. That is our arithmetic on the article, and it shows the practical point: the tax scales with the price, so a nightly rate quoted in a rental projection without saying whether it includes the tax is off by a tenth one way or the other.

What this means if you are buying to let

The tax is the easy part

A 10% charge on the guest’s payment is visible and predictable. It still belongs in any yield projection, and the brochures that quote gross nightly rates often leave it out. What an investment projection should carry.

The right is the hard part

The tax treats your house as a hotel the moment it is let. Land law may not. A foreigner’s hak pakai home carries a residential designation limit (PP 18/2021 art. 72(d)), and running accommodation is a licensed tourism business activity (PP 5/2021 art. 140(f)). Being inside the tax does not make the letting lawful. Which structure can actually let a villa.

The zone matters too

Whether accommodation is permitted on the land at all is a spatial-plan question. What each zone allows.

What this page does not cover

Income tax on the owner’s rental income is a national tax under separate legislation that we have not read, so there is no rate for it here. Nor is there a registration procedure: the by-laws set the tax, and the regional revenue office (Bapenda) administers it. And there is no Badung or Gianyar figure — we could not obtain either by-law, and a national ceiling is not a regional rate.

We are not a tax adviser or a villa manager. We are paid a fixed fee per enquiry whether you buy or not; this page quotes the statute and the by-laws so you can check what you are told.

Questions on this page

What is PBJT on a Bali villa?

PBJT (Pajak Barang dan Jasa Tertentu) is the regional tax on certain goods and services. One of its objects is hotel services, and Law 1/2022 article 53(1) lists villas, and private residences used as a hotel, among the providers of hotel services. The rate is set by regional by-law, at most 10% (article 58(1)).

How much is the tax on villa rentals in Bali?

Law 1/2022 caps it at 10%. Denpasar sets 10% (Perda 5/2023 art. 24(1)) and Tabanan sets 10% for hotel services (Perda 13/2023 art. 29(1)(c)). We have not obtained Badung's or Gianyar's by-laws, so for Canggu, Seminyak, Uluwatu and Ubud we can only give the 10% ceiling.

Does the villa tax apply to my own house if I rent it out?

The statute and both by-laws list 'a private residence used as a hotel' (tempat tinggal pribadi yang difungsikan sebagai hotel) as a hotel-services provider. A house let to paying guests is inside the list on its wording. Whether a foreigner's hak pakai home may be let at all is a separate question about the right, not the tax.

Who pays PBJT, the owner or the guest?

Law 1/2022 article 56 makes the consumer — the guest — the subject of the tax, and the person or entity making the sale the taxpayer. In practice the operator collects it on the guest's payment and pays it to the region.

What is the tax base for PBJT on a villa?

The amount the guest pays (Law 1/2022 art. 57(1)). Where there is no payment, the base is the selling price of similar services in that region (art. 57(2)).

Is PBJT the same as income tax on rental income?

No. PBJT is a regional tax charged on the guest's payment. Income tax on what the owner earns is a national tax under different legislation, which this page does not cover.

Sources cited on this page

Every rule above was read in the Indonesian original on 20 September 2026, not from an English summary. How we check this.