Property Rental & Boarding House Tax
Property rental income is subject to 10% Final Income Tax that is final and cannot be credited. If the owner is already PKP, commercial rental VAT must also be collected. Arunika Consulting helps property owners ensure rental tax obligations are orderly and on time.
Tax Rate
10%
PPH FINAL
Risk Level
Low
Typical Turnover
IDR 100 million - 10 Billion per year
Tax Challenges
Definitive Final Tax
10% Final Income Tax becomes a fixed burden so good cash flow management is needed.
VAT Obligation
PKP must collect VAT on commercial rentals and report it every period.
Rental Contract Documentation
Rental contracts must be clear so tax basis and withholding are correct.
Our Tax Solutions
Final Income Tax Reporting
Management of Final Income Tax payment and reporting for rentals to avoid being late.
- No sanctions
- Organized documents
- Compliance maintained
Rental VAT Management
Tax invoice issuance and VAT reporting for commercial properties.
- VAT compliance
- Input tax credit
- Organized cash flow
Ownership Structure
Evaluation of personal vs entity ownership for tax efficiency and asset protection.
- Tax efficiency
- Asset protection
- Long-term planning
Related Tax Regulations
PP 34/2017
Final Income Tax on Land/Building Rental
10% Final Income Tax from gross rental value of land and/or buildings
PPN Sewa
VAT on Rental Services
11% VAT on commercial rentals (with certain exemption provisions)
Need a Tax Consultant for Property Rental & Boarding House Tax?
Consult your business tax strategy with our certified tax consultants. Free initial consultation.
Free Consultation via WhatsAppProperty Rental & Boarding House Tax Consulting Services Across Indonesia
We support clients in major Indonesian cities. Find a location-specific service page for your area.
Bali
Banten
Daerah Istimewa Yogyakarta
Jawa Tengah
Jawa Timur
Kalimantan Barat
Kalimantan Selatan
Kalimantan Timur
Kepulauan Riau
Riau
Sulawesi Selatan
Sulawesi Tengah
Sulawesi Tenggara
Sulawesi Utara
Sumatera Utara
Sumatra Selatan
Frequently Asked Questions
Who pays 10% Final Income Tax?
If the tenant is a tax withholding party, Final Income Tax is withheld from rental payment. If not, the owner pays themselves.
Are all property rentals subject to VAT?
No. VAT only applies to commercial rentals by PKP and does not include simple houses with exemption provisions.
Is Arunika Consulting officially licensed as a tax consultant?
Yes. We are registered tax consultants and support clients with compliant, professional tax advisory and representation.
What should I do if I receive an SP2DK letter or tax audit notice?
Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.
How much tax saving can tax planning deliver?
It depends on your structure and transactions. We identify legal efficiencies, incentives, and reporting improvements without crossing into tax evasion.
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