Taxes in Bali: What Foreigners and Companies Pay in Indonesia in 2026

Life in Bali looks different for everyone: some people work remotely, some open a business, and some rent out property. Taxes in Bali will be different in each of these cases. The amount depends on your tax status, your income, and the type of activity. Indonesian residents pay under one set of rules, and non-residents pay under another. Companies, property rentals, and income from Russia each have their own rules.

Below are the rules on taxes in Bali for 2026.

When you become an Indonesian tax resident

You are recognized as a tax resident if at least one of three conditions is met: you live in Indonesia, you stay in the country for more than 183 days within 12 months, or you are in Indonesia during the tax year and intend to live here. The days are counted in total and do not have to be consecutive.

This is why the tax office looks at more than just the number of days. Your actual place of residence and your intention to live in Indonesia also matter. This intention is confirmed by a long-term visa, a KITAS or KITAP, housing in the country, or your family moving here.

A tourist visa does not exempt you from taxes, and a KITAS does not mean you will have to pay tax. The tax office assesses the situation as a whole: how much time you spend in the country, where you live, and what income you receive. You can read more about the criteria in our article on tax residency in Indonesia.

Resident status alone does not mean you have to pay taxes in Bali. Tax arises when your income exceeds the non-taxable threshold of IDR 54 million per year for a person without family deductions. Income includes not only money from Indonesia but also payments from other countries, such as from a foreign employer or clients.

Example. You live in Bali for 200 days a year and work remotely for IDR 10 million per month, which is IDR 120 million per year. This is above the non-taxable threshold, so the income is taken into account when calculating Indonesian income tax.

Once you become a resident, you need to register with the tax office, obtain an NPWP tax number, and file an annual tax return. In practice, a foreigner can register only with a KITAS or KITAP, because the tax office requires one of them together with a passport. In our tax team's experience, a remote worker KITAS (E33G) is also accepted. What an NPWP is and how to obtain it is covered in the next section, and the deadlines are covered in the "Reporting deadlines and penalties" section.

There is an exception for some foreign specialists: for the first four tax years, they pay tax only on income earned in Indonesia. The exception does not apply automatically: you need to confirm that you meet the qualification requirements with documents, and the list of these documents is set by the tax office.

Tax number (NPWP): who needs it and how to get it

You need a tax number to register, file tax returns, and pay taxes. Without it, you do not exist for the tax office.

Since 1 July 2024, Indonesian citizens use their national identification number (NIK) from their identity card (KTP) instead of a tax number.

Foreigners are assigned a separate 16-digit NPWP number. It is issued upon registration in Coretax, the electronic system of the Indonesian tax office. To register, a foreigner needs a passport and a KITAS or KITAP, because the tax office will not register you without them, and the list of documents is published on the website of the tax office (DJP).

Personal taxes: rates and reporting

Taxes in Bali for individuals are calculated on taxable income for the year, not on all the money that arrives in your account. The non-taxable threshold and deductions allowed by law are first subtracted from annual income, and only the remainder is subject to the rate.

The following rates apply in 2026 (Art. 17 of the Income Tax Law as amended by UU 7/2021):

The rates are applied progressively, bracket by bracket. If your taxable income is IDR 100 million, the first IDR 60 million is taxed at 5% (IDR 3 million), and the next IDR 40 million at 15% (IDR 6 million). The total tax is IDR 9 million, not IDR 15 million at the top rate.

For a resident, the calculation includes income from both Indonesia and other countries. For a remote specialist, the client's location does not matter: if the money comes from Russia, it still has to be reported in the Indonesian tax return.

Corporate taxes

The base corporate income tax rate for an Indonesian company in 2026 is 22%. The tax is calculated on taxable profit, not on turnover.

Public companies can pay 19%. The conditions are that at least 40% of the shares are traded on the Indonesian stock exchange, these shares are held by at least 300 parties, each holding does not exceed 5%, and this holds for at least 183 days in the tax year.

Small businesses with an annual turnover of up to IDR 4.8 billion can use the 0.5% of turnover regime. From 22 April 2026, following regulation PP 20/2026, it remains available to individual entrepreneurs and single-founder companies (PT Perorangan) with no time limit, and to cooperatives for four tax years. For individuals, the first IDR 500 million of turnover per year is not taxed. Income from independent professions, such as consultants, legal professionals, doctors, and architects, does not qualify for the regime.

Regular companies in the form of a PT, including a PT PMA, as well as a CV and a firma, no longer receive the 0.5% rate: they pay corporate income tax under the general rules. If such a company applied the 0.5% rate before 22 April 2026 and its period under the previous rules has not yet expired, it completes that period at the 0.5% rate and then moves to the general regime.

Tax on property rentals

Income from renting out land or a building is subject to a separate tax of 10% of the rental amount. The rate is the same for individuals and companies.

The tax is calculated not on profit after expenses but on the full rental amount. This amount may also include related payments for maintenance, upkeep, security, and services.

The tenant may withhold the tax. For example, a corporate tenant deducts 10% from the rent and transfers it to the tax office. If the tenant does not do this, the owner pays the tax.

Renting out a house and running a hotel business are different things. Separate tax rules apply to accommodation for tourists.

Double taxation with Russia

Russia and Indonesia have an agreement on the avoidance of double taxation. It was signed on 12 March 1999, entered into force on 17 December 2002, and has applied since 1 January 2003. The Multilateral Convention (MLI) amended the agreement: for taxes withheld at source, the changes have applied since 1 January 2021, and for other taxes since 2022. The treaty text is published in English.

The agreement determines which country taxes each type of income: real estate, business profits, dividends, interest, royalties, employment income, and others.

If a person is a resident of both countries under their domestic rules, the agreement resolves the conflict. First, the authorities look at where the person has a permanent home, and then at which country the person has closer personal and economic ties with.

The agreement provides for a tax credit. Tax paid on income in one country is credited when calculating tax in the other. The credit is limited to the amount of tax that the second country would have charged on that income.

For dividends, interest, and royalties, the agreement limits the tax at source to no more than 15% of the income amount, provided that the conditions of the agreement are met.

The agreement does not automatically exempt income from tax in one of the countries. It determines who taxes a specific type of income, how it is taxed, and how to avoid paying twice. The type of income and the person's tax status are determined first, and then the rules of the agreement are applied.

Reporting deadlines and penalties

Individuals file their annual tax return by 31 March of the following year. Income for 2026 must be declared by 31 March 2027.

Companies file their tax return by 30 April of the following year.

A penalty applies for filing the annual tax return late (Art. 7 of the Law on General Provisions and Tax Procedures):

• IDR 100,000 for an individual;

• IDR 1,000,000 for a company.

This penalty applies only to a late tax return. If the tax payment itself is late, interest is also charged at a rate set monthly by the Ministry of Finance, for no more than 24 months.

Frequently asked questions

Do you need to pay taxes in Indonesia if you live in Bali?

It depends on your status and income. If you have spent more than 183 days in Indonesia within 12 months, you are most likely a tax resident. Tax arises when your income exceeds IDR 54 million per year, including income from remote work for foreign clients.

Your visa does not determine your status. The tax office looks at the length of your stay, your place of residence, and your intention to live in the country. A long-term visa or a KITAS confirms this intention.

What is a tax number?

It is your identifier in the Indonesian tax system. You need it to register, file tax returns, and pay taxes.

What is the tax rate for a foreigner?

There is no separate rate for taxes in Bali for foreigners. A tax resident pays according to the general scale from 5% to 35%, depending on taxable income.

Land and building rentals are taxed at 10% of the rental amount, and small businesses at 0.5% of turnover.

Is there a double taxation agreement with Russia?

Yes. It determines which country taxes each type of income and how to credit tax paid in the other country.

Not sure which taxes in Bali apply to you and what you need to file? Contact us, and we will review your situation and help you understand where to start.

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