What Taxes Must Bali Developers Pay?
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In this episode, we break down the real tax obligations property developers face in Bali — from construction tax, VAT and self-build structures, through to the final taxes paid when selling villas to foreign investors.
We discuss:
• When developers are required to pay tax
• The difference between contractor tax vs self-build tax
• VAT obligations and common misunderstandings
• The 10% final income tax on villa sales
• The confusion around the “0.5% tax rule”
• How tax applies when selling through a PMA vs personal name
• What happens if a development loses money
• Why many developers underestimate their true tax exposure
• How Indonesia’s new AI-driven tax systems are changing enforcement
If you are developing, investing, building villas, or planning to enter Bali real estate, this is an important conversation to understand the financial realities behind Bali property development.
Follow @mellonieamin @thebaliopportunityornightmare @terje.h.nilsen for more insights