balipropertyguidePP 35/2023 in English: the machinery of Bali's property taxes
Law 1/2022 sets the ceilings and regency by-laws set the rates. PP 35/2023 sets everything in between: the base, the moment a tax falls due, and how to challenge it.
PP 35/2023, the articles a property owner meets, in order
Three of the taxes on Bali property are regional: the annual property tax (PBB-P2), the acquisition duty (BPHTB) and the tax on hotel services that a villa let by the night collects (PBJT). Law 1/2022 sets their ceilings; regency by-laws set the rates; PP 35/2023 sets the common machinery — the base, the moment a tax falls due, and how to challenge an assessment. It replaced PP 10/2021 and PP 55/2016, among others (PP 35/2023 (JDIH BPK status: Mencabut)).
| Article | What it decides | Used on |
|---|---|---|
| PP 35/2023 art. 12(1)-(2) | The PBB base is NJOP, set by valuation. | annual property tax |
| PP 35/2023 art. 12(4) | PBB is computed on the state of the property on 1 January. | — |
| PP 35/2023 art. 13(1)-(2) | The base is set at 20% to 100% of NJOP after the tax-free NJOP, by group, considering NJOP increases, use and clustering. | — |
| PP 35/2023 art. 18(2) | BPHTB falls due on the PPJB for a sale, the deed for an exchange, gift or contribution to a company, registration for inheritance, the judgment, the decision granting a new right, or the auction. | taxes on a sale |
| PP 35/2023 art. 1(33) | Hotel services means providing accommodation, which may come with food and drink, entertainment and other facilities. | villa rental tax |
| PP 35/2023 art. 19(1)(c) | PBJT on hotel services is charged on the amount paid to the provider of hotel services. | — |
| PP 35/2023 art. 89(2)-(3), (5) | An objection is filed in writing in Indonesian, within 3 months of the assessment, after paying at least the amount the taxpayer agrees. | — |
| PP 35/2023 art. 90(3), (5) | It must be decided within 12 months, failing which the objection is deemed granted. | — |
| PP 35/2023 art. 85(1) | Collection lapses after 5 years from when the tax fell due. | — |
| PP 35/2023 art. 99 | A regional head may grant reductions, relief, exemptions or write-offs of tax, fees or sanctions — on application or of office, considering ability to pay or a disaster or fire affecting the property. | — |
| PP 35/2023 (JDIH BPK status: Mencabut) | Replaced: PP 10/2021 and PP 55/2016, among others. | — |
The base and the moment
PBB is based on NJOP, set by valuation (PP 35/2023 art. 12(1)-(2)), computed on the state of the property on 1 January (PP 35/2023 art. 12(4)), with the base set at 20% to 100% of NJOP after the tax-free NJOP, by group, considering NJOP increases, use and clustering (PP 35/2023 art. 13(1)-(2)). The 1 January rule is the one to remember at purchase: the year’s PBB is assessed on whoever and whatever the property was on that date, so who bears it for the year of sale is a matter for the contract. Annual property tax in Bali.
BPHTB falls due on the PPJB for a sale, the deed for an exchange, gift or contribution to a company, registration for inheritance, the judgment, the decision granting a new right, or the auction (PP 35/2023 art. 18(2)). For a sale on a PPJB, that is the PPJB date, not the AJB — the same rule the 2022 law sets, now restated with its exceptions. PPJB vs AJB.
Hotel services means providing accommodation, which may come with food and drink, entertainment and other facilities (PP 35/2023 art. 1(33)), and PBJT on them is charged on the amount paid to the provider of hotel services (PP 35/2023 art. 19(1)(c)) — the guest’s payment, not the operator’s profit. Villa rental tax.
Challenging an assessment
An objection is filed in writing in Indonesian, within 3 months of the assessment, after paying at least the amount the taxpayer agrees (PP 35/2023 art. 89(2)-(3), (5)). It must be decided within 12 months, failing which the objection is deemed granted (PP 35/2023 art. 90(3), (5)). That deemed-acceptance rule is the taxpayer’s protection against an objection left in a drawer.
Two other provisions round it out. Collection lapses after 5 years from when the tax fell due (PP 35/2023 art. 85(1)), which bounds how far back a regency can go on unpaid PBB — relevant when a buyer inherits a seller’s arrears question. And a regional head may grant reductions, relief, exemptions or write-offs of tax, fees or sanctions — on application or of office, considering ability to pay or a disaster or fire affecting the property (PP 35/2023 art. 99).
The deadlines, side by side
| Step | Time limit | Where it is written |
|---|---|---|
| Object to an SPPT or assessment | 3 months from the date sent | PP 35/2023 art. 89(2)-(3), (5) |
| Decision on the objection | 12 months, or deemed granted | PP 35/2023 art. 90(3), (5) |
| Appeal to the tax court | 3 months from the decision | PP 35/2023 art. 95(1) |
| Refund interest on a successful objection | 0.6% a month, at most 24 months | PP 35/2023 art. 91(1) |
| Collection of unpaid tax | lapses after 5 years | PP 35/2023 art. 85(1) |
In Denpasar, NJOP is reassessed every three years (Denpasar Perda 5/2023 art. 6(5)). A reassessment year is when an SPPT is most likely to jump — and the 3-month clock starts when it is sent, not when the owner abroad first sees it. An owner living overseas should know who receives the SPPT at the property.
If the objection fails
An objection is not free. If it is rejected or only partly granted, the taxpayer faces an administrative fine of 30% of the tax per the objection decision, less what was paid before objecting (PP 35/2023 art. 91(3)). If it succeeds, overpaid tax comes back with interest of 0.6% a month for at most 24 months (PP 35/2023 art. 91(1)). An objection decision can be appealed to the tax court within 3 months of the objection decision (PP 35/2023 art. 95(1)). The 30% figure is the reason to object on numbers you can document — a valuation, the land area, the building’s actual state on 1 January — rather than on a general sense that the bill is high.
What it does not set
Rates. The rates for Badung, Gianyar, Denpasar and the other regencies are in their own by-laws; this site has read Denpasar’s and Tabanan’s and not yet Badung’s or Gianyar’s. The 2022 law and its ceilings.
This is commentary, not tax advice. The official Indonesian text on JDIH BPK is the authority.
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Questions on this page
What is PP 35/2023?
Government Regulation 35/2023 on the general provisions of regional taxes and levies, implementing Law 1/2022 (HKPD). It sets how PBB-P2, BPHTB and PBJT are based and when they fall due, how objections work, and when collection lapses. It replaced PP 10/2021 and PP 55/2016.
How do I object to a PBB or BPHTB assessment in Bali?
In writing in Indonesian to the regional head within 3 months of the assessment, after paying at least the amount you agree with (PP 35/2023 art. 89(2)-(3), (5)). It must be decided within 12 months, failing which it is deemed granted (art. 90(3), (5)).
When does BPHTB fall due on a Bali purchase?
On the date the PPJB is signed for a sale — or on the AJB if there is no PPJB — and on the deed, registration, judgment, grant decision or auction for other acquisitions (PP 35/2023 art. 18(2)-(3)).
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.