Indonesia Property Tax Calculator

Calculate PBB, rental income tax, capital gains tax, and investment returns

Property & Investment Details

Usually 70-80% of market value

Rental Income

Management, maintenance, utilities

PBB (Property Tax)

$1,996

per year

0.5% of taxable NJOP

Rental Income Tax

$3,300

per year

22% on net profit

Capital Gains Tax

$22,000

on sale

22% on capital gain

Investment Analysis (5 years)

Rental Income

Total Gross Rent$135,000
Operating Expenses-$60,000
Rental Income Tax-$16,500
Net Rental Income$58,500

Capital Appreciation

Purchase Price$500,000
Sale Price$600,000
Capital Gain$100,000
Capital Gains Tax-$22,000
Net Capital Gain$78,000

Total Taxes Paid

$48,480

Total Net Profit

$126,520

Annualized ROI

5.1%

Total ROI: 25.3%

Indonesia Property Tax Guide

PBB (Property Tax)

  • - Rate: 0.5% of taxable NJOP (government assessed value)
  • - Non-taxable threshold: First 12M IDR (~$800) exempt
  • - Payment: Annual, due by September each year
  • - NJOP: Usually 70-80% of market value, set by local government
  • - Penalties: 2% per month for late payment

Rental Income Tax

  • - PT PMA (company): 22% corporate tax on net profit (rent minus expenses)
  • - Personal: Final tax 10% on gross rental income (no expense deductions)
  • - Payment: Monthly withholding or annual filing
  • - Company advantage: Can deduct all operating expenses
  • - Personal disadvantage: Pay on gross, even if property loses money

Capital Gains Tax (PPh 25)

  • - PT PMA: 22% on actual capital gain (sale price - purchase price - improvements)
  • - Personal: Final tax 2.5% of gross sales price (simplified method)
  • - Personal example: Sell for $500k = $12,500 tax, regardless of profit
  • - Withholding: Paid at notary during property transfer
  • - No exemptions: Unlike many countries, no primary residence exemption

PT PMA vs. Personal Ownership

PT PMA (Company)

  • - Most secure ownership
  • - Expense deductions
  • - Capital gains on actual profit
  • - Setup cost: $5k-10k
  • - Annual compliance: $2k-4k

Personal (Hak Pakai)

  • - Simpler setup
  • - No annual compliance costs
  • - Higher rental income tax
  • - Higher capital gains tax
  • - Limited ownership period

Important: This calculator provides estimates only. Actual tax liability depends on individual circumstances. Always consult a qualified Indonesian tax advisor before making investment decisions. Tax laws change frequently, and there may be double taxation treaties with your home country.