**A foreign-owned resort in Indonesia is run through a PT PMA, and that company pays a 22% corporate income tax on profit, charges and remits 11% VAT (PPN) on most sales, withholds tax on payroll and certain payments, and carries property, regional and tourism-related levies. Rates below are current as of June 2026 and can change.**
Tax is the part of a Raja Ampat resort plan that owners tend to underestimate. The headline numbers look simple, but the way they stack — company tax on profit, consumption tax on guests, withholding on staff and suppliers, plus a layer of local and tourism charges — is what determines real cash flow. This guide walks through each tax at a high level so you know what to ask a licensed adviser about before you commit.
Bali Premium Trip operates this site as an independent broker and concierge. We are not your accountant, lawyer or tax agent, and nothing here is licensed financial advice. Treat the figures as a map, not a ruling — confirm everything with a registered Indonesian tax consultant (konsultan pajak) and the relevant authorities before acting.
Who actually pays the tax — you or the company?
A foreigner cannot own freehold land or operate a resort as a private individual in Indonesia. The structure is a PT PMA (Penanaman Modal Asing) — a foreign-investment limited company — that you own shares in. The PT PMA is the taxpayer. It holds the land rights (typically Hak Pakai or Hak Guna Bangunan, or a leasehold), runs the resort, files returns, and pays tax under its own NPWP (tax ID).
This matters because the taxes below land on the company, not on you personally as a shareholder. You meet Indonesian tax again only when profit is distributed to you as a dividend, and your home country may tax that too. The order of events is roughly:
- The PT PMA earns revenue from room nights, F&B, diving, transfers.
- It pays operating costs, depreciation and corporate income tax on what is left.
- After-tax profit can be retained or paid out as a dividend.
- A dividend to a foreign shareholder triggers withholding tax in Indonesia (commonly 20%, often reduced by a tax treaty).
What is the corporate income tax rate?
The standard corporate income tax (PPh Badan) rate in Indonesia is 22% of taxable profit, in force since the 2022 tax year and still standard as of June 2026. Taxable profit is revenue minus deductible expenses, including depreciation on the building, furniture, boats and equipment — a meaningful shield for a capital-heavy resort in its early years.
A few practical points an owner should raise with an adviser:
- Losses carry forward. Tax losses can generally be carried forward for up to five years, which softens the heavy-capex opening period most resorts go through.
- Depreciation is your friend. Building, fit-out, jetties, dive gear and vehicles are written off over set useful lives, reducing taxable profit while the asset is still earning.
- Related-party pricing is watched. If your PT PMA pays management or licensing fees to an offshore entity you control, transfer-pricing rules apply and documentation can be required above certain thresholds.
| Tax | Rate (June 2026) | Falls on | Notes |
|---|---|---|---|
| Corporate income tax (PPh Badan) | 22% | PT PMA profit | Standard rate; losses carry forward ~5 years |
| VAT (PPN) | 11% | Most goods/services sold | Collected from guests, remitted monthly |
| Dividend withholding (foreign) | 20% | Dividend to overseas shareholder | Often reduced by tax treaty |
| Employee income tax (PPh 21) | Progressive | Staff salaries | Withheld by employer |
| Land & building tax (PBB) | Region-set | Property held | Annual; rate varies by area |
How does VAT (PPN) work for a resort?
Indonesia’s value-added tax, PPN, is 11% as of June 2026. Once your PT PMA is registered as a taxable enterprise (PKP), it adds 11% to most sales — rooms, food and beverage, spa, tours billed through the company — and remits the collected amount to the state. PPN is not your cost; it is a tax on the guest that you collect and pass on. The catch is administration: you file monthly, you can credit input PPN paid on qualifying purchases against output PPN you collected, and late or sloppy filing draws penalties.
A subtlety worth flagging: the tax authority has at times applied PPN to digital and certain tourism services in specific ways, and there has been policy discussion around a higher headline rate. As of this writing the rate applied to ordinary resort sales is 11%. Date-stamp this in your model and re-check before launch.
What about staff, suppliers and other withholding taxes?
Beyond the two headline taxes, a resort is a withholding agent. It deducts tax at source on several payments and remits it on behalf of the recipient:
- PPh 21 — employees. Salaries are taxed on a progressive scale (brackets from 5% up to 35% on the highest band). The resort withholds and pays this for staff.
- PPh 23 — services and rentals. Payments to many local vendors (cleaning, professional services, equipment rental) carry a 2% withholding, or higher in some cases.
- PPh 26 — payments abroad. Royalties, interest, management fees or dividends paid to non-residents carry 20% withholding, frequently reduced by an applicable tax treaty.
- PPh 4(2) — final taxes. Certain income, such as some land/building-related transactions, is taxed on a final basis at fixed rates.
These are the items that quietly add up. They are not a tax on the resort’s profit, but mishandling them — wrong rate, missed deadline, no withholding slip — is one of the most common compliance problems for new foreign operators.
Are there property, regional and tourism-specific levies?
Yes, and this is where Raja Ampat adds its own layer on top of the national taxes. Expect:
- Land and building tax (PBB). An annual property tax set at the regional level; the rate and assessed value depend on the kabupaten (regency) and location.
- Land transfer duty (BPHTB). A duty, commonly around 5% of value, when land rights are acquired or transferred — relevant at the point you secure the site.
- Regional / hotel and restaurant tax. Indonesian regencies levy a tax on hotel and restaurant turnover (historically up to 10%, set locally). This is separate from PPN and is collected for the regional government.
- Raja Ampat marine conservation levy. Raja Ampat operates a well-known visitor conservation fee (the “marine park tag”), the proceeds of which support local conservation. It is a charge on visitors rather than a corporate tax, but it is part of the cost picture guests and operators deal with, and amounts have changed over time.
Conservation-zone and spatial-planning rules in Raja Ampat are strict, and some areas restrict or prohibit development entirely. Those rules sit alongside tax and can be the bigger constraint. Confirm both the zoning status and the current regional levy schedule with local authorities before you model returns.
What is the realistic compliance calendar?
A foreign-owned resort lives on a recurring filing rhythm. At a high level:
| Obligation | Typical frequency | What it covers |
|---|---|---|
| PPN return | Monthly | VAT collected and credited |
| PPh 21 / 23 / 26 | Monthly | Withholding on staff, vendors, foreign payments |
| Corporate income tax (annual SPT) | Annual | Full-year profit and final settlement |
| PBB | Annual | Property tax |
| Bookkeeping in IDR | Continuous | Indonesian-standard accounts |
Most operators outsource this to a local accountant or tax agent from day one. The cost of compliance is small next to the penalties and the licensing risk of getting it wrong.
The honest bottom line
For a foreign-owned resort in Raja Ampat, the tax core is straightforward to state and harder to run: 22% corporate income tax on profit, 11% PPN collected from guests, progressive withholding on payroll, 20% on most cross-border payments, plus regional property, hotel/restaurant and conservation-related levies. These figures are current to June 2026 and are subject to change by national and regional authorities.
What this guide cannot do is tell you your number — that depends on your structure, your treaty position, your financing and your site’s zoning. Use it to ask sharper questions, then put a registered Indonesian tax consultant and a licensed lawyer in the room before you sign anything. Bali Premium Trip can help connect you to the right professionals and walk the ground with you; we do not replace them. Decisions, approvals and final rates always rest with the relevant Indonesian authorities.