How much tax do you pay for commercial real estate in Indonesia?
There are various types of
taxes to consider when owning
real estate">commercial
real estate in Indonesia. Here are the
taxes you need to pay:
Sales Tax The largest tax item is local sales tax, which is 10% of revenue and must be paid monthly.
Profit Tax Profit tax is normally 12%. For the first 3 years, there is a special benefit scheme for startup entrepreneurs, where you pay only 0.5% on revenue instead of the regular profit tax. This is a government stimulus initiative.
Property Tax Property tax (Pajak Bumi dan Bangunan, or PBB) is a tax on
real estate ownership based on property value. PBB is payable annually and amounts to 0.5% of the property value.
Dividend Tax Dividend tax on dividend income ranges from 10-13%.