Bali Tax Services for Expats: Do Foreigners Need to Pay Taxes?

August 5, 2025

Living in Bali is a dream for many expats, but dealing with taxes in Indonesia can be confusing, especially when you’re unsure what rules actually apply to foreigners. When it comes to the question “Do expats need to pay tax in Indonesia?”, the answer depends on what visa you are using to stay in Bali.

Keep reading to discover key tax obligations for expats, how to stay compliant, and how Usaha Expat makes it easier with trusted Bali tax services for expats.

Do Expats in Bali Need to Pay Taxes?

Whether or not you need to pay taxes in Bali as an expat depends mainly on your residency status. Generally, taxes apply to foreigners who hold a residence permit and receive income in the country, such as those with an Investor ITAS or a Working ITAS.

Expats With Investor ITAS

An Investor ITAS is granted to foreign directors of a legally established PT PMA (a foreign-owned company in Indonesia). This residence permit allows them to live, earn income from their business, and manage their company in Indonesia. Since they receive income from their business in Indonesia, they are classified as tax residents and are required to report their income annually.

Expats With Working ITAS

On the other hand, a Working ITAS is issued to foreign employees who are employed by an Indonesian company, including PT PMA. These individuals are both working and earning income from their company in Indonesia, and are therefore subject to income tax obligations.

Reading suggestion: Differences Between Investor and Working ITAS

In both cases, staying compliant with Indonesia’s tax regulations is essential, and with the right Bali tax services for expats, managing these obligations can be smooth and stress-free.

Common Tax Responsibilities for Expats and Their Businesses

Here are the most common personal and company tax responsibilities that you may face as an expat in Bali:

For Individuals with Investor ITAS or Working ITAS:

Annual Personal Income Tax Report:
The Annual Personal Income Tax Report is a mandatory tax filing for individuals who are classified as tax residents in Indonesia and have an NPWP (the tax identification number), such as PT PMA directors and foreigners working under an Indonesian companyisa with a legal stay permit visa This report summarises all personal income earned during the tax calendar year, whether from salaries, dividends, investments, or other sources.

For PT PMA Company:

Company Monthly Tax Reports
Even if the company isn’t yet generating income, you still need to report this.
Company Annual Financial and Tax Reports
Which must be submitted, and your company may also be audited.

Many expats think that rules only apply to big businesses. However, in Indonesia, tax compliance is mandatory for businesses, regardless of their scale. If you do not file documents correctly and on time, you may face fines, lose your business license, or have visa problems.

Common Tax Responsibilities for Expats and Their Businesses

The Indonesian tax system can be complex, especially for foreigners. Rules change often, forms are in Bahasa Indonesia, and even something as simple as registering for an NPWP can be difficult without guidance.

Usaha Expat offers flexible packages tailored to your business size and needs. Whether you’re a solo expat managing personal tax or the director of a growing PT PMA, we have options to suit your budget.

We’re more than just consultants, we’re fellow expats who’ve been through the same challenges. That’s why we built a team to help others navigate bureaucracy with honesty, transparency, and full support.

Don’t wait for deadlines or penalties to find out what you should’ve done months ago. Let our team take care of your tax and compliance needs from day one. Book a free consultation today!