Renting out a house, apartment, kos or shop? Rent of land and buildings carries a 10% final tax on the gross rent — no deductions for costs. See who pays it and what you keep.
Income from renting out land and/or buildings — houses, apartments, boarding houses (kos), shophouses, offices, warehouses and even land for billboards — is subject to a final income tax of 10% of the gross rent under PP 34/2017. Because it is final, you cannot deduct maintenance, depreciation or loan interest, and the income is not added to your other income in the annual calculation.
| Situation | Who pays | Deadline |
|---|---|---|
| Tenant is a company, government body or appointed agent | Tenant withholds 10% from rent | By the 15th of the month after payment |
| Tenant is an individual | Landlord pays 10% directly | By the 15th of the month after rent is received |
Either way, the rent and the tax are reported in the landlord's annual SPT as income subject to final tax.
Commercial leases often state a rent that the landlord receives clear of tax. The tenant then has to gross it up so that 10% of the gross equals the tax: gross = net ÷ 0.9. A Rp90 million net rent becomes Rp100 million gross with Rp10 million tax.
Rules for serviced apartments, mixed-use leases and PPN on rent can be complex. Confirm with DJP or a tax consultant.