NPWP for foreign villa owners in Bali: who needs one, and which kind

The usual advice to foreigners buying in Bali is to “get an NPWP”, as if it were one document. Since 2022 there are two kinds of number for individuals, and which one an owner holds depends on whether they are resident for tax — a test that counts days in Indonesia, not passports. This page reads the rules that decide it.

Seven words in Indonesian tax registration

The terms you will meet on the forms and in the regulations.

Who must register

The rule

UU KUP Pasal 2(1), as amended by the 2021 tax harmonisation law, requires every taxpayer who has met the subjective and objective requirements of the tax laws to register at the tax office covering their residence or seat and to be given an NPWP. If a taxpayer does not register, the Director General may issue one ex officio (ayat (4)). Wilfully failing to register is a criminal offense where it can cause a loss to state revenue (Pasal 39(1)(a)); we did not check whether later laws changed its penalty range, so we give none.

Deadlines

Under PMK 81/2024 Pasal 17, an individual who runs a business registers within 1 month of starting the business; for other income, by the end of the month after cumulative income passes the non-taxable threshold. Nightly letting of a villa is a business — lodging is excluded from the 10% final tax on rent (the rental tax page) — so the one-month clock is the one that usually applies.

A number for someone who is not yet a taxpayer

Pasal 16(6) also allows an individual who does not yet meet the objective requirements, or is not a tax subject, to be given an NPWP for tax-administration purposes. A buyer who has no Indonesian income yet can still hold a number.

Resident or not: the test that decides which number

An individual is a resident tax subject if they live in Indonesia, are present more than 183 days in 12 months, or living here — precisely, more than 183 days in any 12 months, or present in a tax year with the intention to reside (UU PPh Pasal 2(3)(a)). Anyone else receiving Indonesian income is a non-resident (ayat (4)).

Residents: the NIK is the number

UU KUP Pasal 2(1a) makes the NIK the NPWP of a resident individual. PMK 112/2022 Pasal 1 defines penduduk as Indonesian citizens and foreigners residing in Indonesia, and Pasal 2(1) applies the NIK rule to resident individuals from 14 July 2022. Since 1 July 2024, the NIK-as-NPWP and the 16-digit NPWP are the numbers used in tax and third-party services (PMK 136/2023). Whether a given foreigner holds an NIK is a question of civil registration, which this page does not cover.

Non-residents: a 16-digit number

Under PMK 81/2024 Pasal 16(2), a resident's NPWP is the activated NIK and a non-resident individual's is a 16-digit number generated by the tax office's system. Pasal 20(2) lists what a non-resident attaches to the application: a passport copy, a colour photo, and a colour photo holding the passport. The office issues the number within 1 working day of a complete application (Pasal 21). An old 15-digit number became 16 digits by adding a leading zero (PMK 112 Pasal 7(2)).

A note on foreign residents' foreign income

A foreigner who becomes resident is in principle taxed on worldwide income. The 2021 law carved out 4 tax years, for foreigners with certain expertise: those taxpayers are taxed only on Indonesian income (UU PPh Pasal 4(1a)). PP 55/2022 Pasal 4 limits the expertise to foreign workers in designated positions and foreign researchers with science, technology or mathematics qualifications — it is not a retiree or investor rule. Retirement stay permits and KITAS for owners are separate questions.

Five owner situations

How the rules above apply to the ways foreigners actually hold Bali villas.

The company case

A PT PMA is a separate taxpayer with its own 16-digit NPWP (PMK 112/2022 Pasal 2(1)(b)). Since 1 July 2024 a place of business separate from the company's seat is identified by a NITKU (Pasal 11(1)(b)) — which is how a company with an office in Denpasar and a villa in Canggu is identified at the villa. The company's annual duties are on the annual obligations page.

The hotel tax number is a different number

The 10% hotel tax on guests is a regency tax, registered with the regency's revenue office under a regional taxpayer number, not the NPWP. Filing the hotel tax.

Buying and selling: what the deed actually waits for

Advice to buyers often says an NPWP is required to buy. The provisions we read put the condition somewhere else: on proof of payment.

• The seller's 2.5%. The official signs the deed only after the seller's 2.5% is proved paid with a payment slip checked by the tax office (PP 34/2016 Pasal 3(5)); PMK 81/2024 Pasal 193(9) names the land deed official (PPAT) among those officials.
• The buyer's BPHTB. The PPAT or notary must ask for proof of BPHTB payment before signing the transfer deed, on pain of an IDR 10,000,000 fine per violation (PP 35/2023 Pasal 60).

Neither provision names the buyer's NPWP. A payment system or an office may still ask for a tax number when the tax is paid, and an owner who will earn income from the villa will need one anyway; but we found no rule making the buyer's NPWP a condition of the deed. Taxes on a sale. Every tax, in order.

Coretax, and the registration timeline

Under PMK 81/2024 Pasal 4, taxpayers exercise their rights and meet their obligations electronically through the Taxpayer Portal, integrated sites or apps, or the contact center; ayat (4) allows in-person service where electronic filing is not possible. For a non-resident owner, that means the application with passport and photos is made through the portal, not at a counter.

What this page does not cover

• Civil registration of foreigners — whether, and when, a foreign resident is issued an NIK.
• How much income tax a villa owes. The rental tax page and company income tax.
• Tax treaties between Indonesia and your home country.

Common questions