PP 55/2022, as amended by PP 20/2026: the 0.5% tax on small-business turnover

The tax that reaches an Indonesian villa owner's nightly letting income — and, since April 2026, no longer reaches an ordinary PT.

PP 55/2022 as amended, the articles a villa owner meets

A villa let by the night is accommodation, not a lease, so the 10% rent tax does not reach it. What taxes the owner’s income depends on who the owner is. For an Indonesian individual, a one-person company or a cooperative with a modest turnover, it is this regulation: a flat 0.5% of gross turnover. PP 20/2026 rewrote who qualifies; pages written before April 2026 describe the old list.

Who is in, after 22 April 2026

The 0.5% rate applies to final income tax on business income of a domestic taxpayer with a certain gross turnover (PP 55/2022 art. 56(1), as amended by PP 20/2026). Since PP 20/2026, the taxpayers who may use it are individuals, and companies that are one-person PTs (perseroan perorangan) or cooperatives, with gross turnover of not more than IDR 4.8 billion in a tax year (PP 55/2022 art. 57(1), as amended by PP 20/2026). The original text also let in cooperatives, limited partnerships (CV), firms, limited liability companies (PT) and village enterprises, alongside individuals (PP 55/2022 art. 57(1)(b), original text). Those are now out, with a transition: CVs, firms, PTs other than one-person PTs and village enterprises keep 0.5% until their existing period ends (PP 20/2026 art. II(1)(e)).

Excluded even if turnover is under the line: taxpayers who choose the general rates, one-person PTs set up to sell free-profession services, permanent establishments, individuals whose turnover together with their one-person PTs exceeds IDR 4.8 billion, and cooperatives after 4 tax years (PP 55/2022 art. 57(2), as amended by PP 20/2026). A foreign-owned PT PMA is an ordinary PT, not a one-person PT, so on our reading it is outside the 0.5% regime whatever its turnover. PT PMA requirements.

Sources: PP 55/2022 arts. 56-60 as enacted; PP 20/2026 art. I(3)-(6). The pre-2026 time limits are summarized from art. 59 as enacted, which we read; we do not repeat the corporate years here because the article no longer exists.

What it means for a Bali villa

An Indonesian owner letting by the night

An Indonesian individual whose villa letting is a business, with gross turnover under the ceiling, pays 0.5% of the gross turnover each month (PP 55/2022 art. 60(1)), and the first IDR 500 million of an individual's gross business turnover in a tax year is not taxed (PP 55/2022 art. 60(2)). The ceiling counts all gross receipts from business and free-profession services in the previous tax year, final-taxed or not, foreign included, before discounts (PP 55/2022 art. 58(1), as amended by PP 20/2026); for spouses, turnover is combined with the spouse's where they have a written separation of property or the wife elects her own tax obligations (PP 55/2022 art. 58(2), as amended by PP 20/2026). The regional hotel-services tax on what guests pay is a separate tax on top. The villa rental tax (PBJT).

An Indonesian landowner leasing land to a foreigner

Not this regime. Rent from a lease is already final at 10% of the gross rent (PP 34/2017 art. 4(1)), and income income of an individual from free-profession services, foreign income taxed abroad, income already under a separate final tax, and non-taxable income is outside the 0.5% (PP 55/2022 art. 56(3)). PP 34/2017, the rent tax.

Agents, notaries, PPATs

The free professions are lawyers, accountants, architects, doctors, consultants, notaries, PPATs, appraisers, online content creators, and intermediaries or people who find customers (PP 55/2022 art. 56(4), as amended by PP 20/2026). An individual agent’s commission or a PPAT’s fee is therefore taxed under the general rules, not at 0.5%. Notaries and PPATs.

The time limits are gone

Article 59, which capped how long a taxpayer could stay on 0.5%, was deleted (PP 20/2026 art. I(6)). Taxpayers whose period had already run out were let back in: individuals whose period ended in 2024 may use 0.5% for 2025 and 2026; individuals and one-person PTs whose period ended in 2025 may use it for 2026 (PP 20/2026 art. II(1)(a)). Advice written before 2026 that an individual “has seven years” on the 0.5% rate describes a rule that no longer exists.

PP 55/2022 was signed on 20 December 2022 (PP 55/2022, signature block) and replaced PP 23/2018 on income from business with a certain gross turnover, and PP 30/2020 (PP 55/2022 (JDIH BPK status: Mencabut)). PP 20/2026 was signed on 22 April 2026, in force on promulgation (PP 20/2026, signature block and art. II(2)).

This is commentary, not tax advice. The general income-tax rates and the Finance Minister's implementing regulation are not on this page.

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