Indonesian Taxes for PT PMA Owners: What You Actually Pay

The headline number is 11%. As a foreign investor holding a Lombok villa through a PT PMA, the main ongoing tax you pay on rental income is 11% of net profit. That's it — not a stack of hidden charges, not layered brackets. One rate applied to what's left after operating costs.

What counts as net profit. Net profit is the rental revenue your villa generates minus the legitimate operating costs: management fees, cleaning, maintenance, utilities, insurance, marketing, and depreciation. Only what remains is what the 11% is calculated on. That's why bookkeeping and monthly reports matter — every real expense properly documented reduces the taxable base.

Who files it. Your PT PMA files monthly and annual tax returns with the Indonesian tax authority (DGT). At Noha, our management service handles all of it — the accounting, monthly closes, tax filings, and communication with the tax office. You receive a clean quarterly report showing revenue, costs, taxes paid, and distributable income. No paperwork on your end.

Property tax (PBB). There is also an annual property tax called PBB — Pajak Bumi dan Bangunan — which is a small percentage of the assessed value of the land and building. For a Kuta villa, this typically comes to a few hundred euros per year and is included in the operating costs your management service pays on your behalf.

When you sell. If you sell the villa at a profit in the future, a capital gains tax applies on the sale. The exact treatment depends on how the sale is structured (share transfer of the PT PMA vs. asset sale). We work with local tax advisors to structure the exit efficiently when the time comes.

The bottom line. The Indonesian tax framework for PT PMA-owned rental villas is simple by international standards: 11% of net profit, plus a nominal annual property tax, plus capital gains on eventual sale. Everything is handled through your PT PMA and, in the Noha model, filed for you as part of the 20% management fee. This article is a general overview — for your specific situation, we always recommend confirming with a licensed Indonesian tax advisor.