Badung Bali Government Initiates Tax Crackdown on Villas

Date: May 17, 2025

In a significant move to enhance tax compliance within the tourism sector, the Badung Regency Government in Bali has launched a tax crackdown targeting villa accommodations. This initiative arises from growing concerns that many villas and boarding houses in the region are not paying taxes effectively.

Establishment of a Coordination Team

To address these issues, the Badung Regency has formed a special coordination team dedicated to optimizing tax revenues sourced from tourism. This decision comes in response to numerous complaints regarding the registration status of accommodation providers in the area. According to the head of the Revenue Division for the Badung Regency, Ni Putu Sukarini, the proliferation of new villas, particularly in areas such as North Kuta, Mengwi, and South Kuta, has contributed to many properties operating without proper tax registration.

Local Community Involvement

Sukarini has emphasized the importance of engaging local communities in the tax report process. Residents are encouraged to report any commercial villas suspected of operating as unregistered entities. The reported cases will be submitted to the Regional Tax Authorities, known in Indonesian as “Bapenda,” for further investigation.

Deployment of Field Officers

Bapenda has mobilized a team of 31 field officers, organized into eight groups, to collect data on accommodation establishments. Their primary focus is to identify new businesses lacking a Regional Taxpayer Identification Number (NPWPD). According to Sukarini, registering for an NPWPD can now be completed online, eliminating barriers to compliance. She stated, “There is no reason not to register. Even if a business is not licensed, if it meets the elements of the subject and object of tax, we can still collect taxes.”

Measures Against Non-Compliance

To bolster enforcement measures, Bapenda has compiled a comprehensive database utilizing information from various online sales platforms. This initiative is designed to better identify unregistered businesses operating in the region. For owners found violating regional tax regulations, substantial sanctions could be imposed.

Current State of Tax Compliance

Recent data indicates that the total number of accommodation-based taxpayers in the Badung Regency is at 5,710 units. This tally includes 4,218 villas, 1,100 hotels, and 310 additional accommodations, such as hostels, tourist lodges, inns, and motels. The crackdown aims not only to increase tax revenues but also to ensure a fair and competitive environment for all accommodation providers.

As Bali’s tourism sector continues to grow, the Badung Regency Government’s tax crackdown represents a proactive measure to ensure compliance and maintain the integrity of the local economy.