Badung taxes a villa guest's bill at 10%. Which line of the statute catches your house decides the rest
A villa is named in the statutory list of hotel services at letter c. The carve-out for lets longer than a month, and the rule putting the duty on the owner rather than the platform, both attach to letter j — and the statute does not say which line a given house falls under.
The number
Badung sets PBJT on hotel services at 10% of what the guest pays. The statute names a villa at letter c and a private residence functioning as a hotel at letter j. The month-long carve-out and the owner-not-platform rule both belong to letter j, and the statute never says which line a given house is on.
Sources accessed 29/09/2026
Two bookings arrive for the same villa above Canggu. A family takes it for a fortnight in August; a couple moves in for the autumn, October to mid-December. Whether the first bill carries a local tax the second does not comes down to which line of a printed list the house sits on.
The rate is the settled part. Pasal 22(1) of Badung’s own tax regulation, Perda 7/2023, names a villa among hotel services, and Pasal 28(1)(c) sets the rate on hotel services at 10%.2Badan Pendapatan Daerah Kabupaten Badung, Last reviewed Pasal 58(1) of Law 1 of 2022 caps this tax at 10%, and Pasal 58(4) leaves the applicable figure to a regional regulation.1Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan, Last reviewed Badung took the ceiling.
Pasal 57(1) makes the base the amount the consumer pays, and Pasal 56 separates two roles owners tend to merge: the guest is the subject of the tax, the person making the sale is the taxpayer.1Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan, Last reviewed The guest bears the money; the seller carries the obligation.
Every owner with a listing asks who remits it, and the statute answers in its elucidation rather than in the article. Where a private residence functioning as a hotel is marketed by a third party, the elucidation of Pasal 56(2) makes the taxpayer the owner or the party controlling the residence, the one supplying the accommodation to the end consumer, and not the marketing or management provider operating through a digital platform.1Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan, Last reviewed
Then the exception, narrower than it looks. Pasal 53(1) of Law 1 of 2022 lists what counts as hotel services, naming a villa at letter c and a private residence functioning as a hotel at letter j.1Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan, Last reviewed The elucidation of letter j defines that limb as a house, apartment or condominium supplied as accommodation in the manner of a hotel, but excluding a long-term rental contract of more than one month.1Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan, Last reviewed Badung repeats that definition, and that carve-out, under its own Pasal 22(1) letter j.2Badan Pendapatan Daerah Kabupaten Badung, Last reviewed
Read the two lines together and the carve-out stops being a rule about length of stay. It hangs on letter j. A villa is caught by letter c, where no length of contract is mentioned at all. On the text, the autumn couple falls outside the tax if the house is a private home supplied as accommodation and inside it if the same house is a villa — and the article does not say which a given house is.
The regulation setting the rate has been amended since: Perda Badung 8/2025 rewrites parts of Perda 7/2023, and the articles its amending provisions reach do not include Pasal 22, Pasal 26 or Pasal 28.3Pemerintah Kabupaten Badung, Last reviewed We read that amendment item by item, because a rate quoted from a superseded text is worth nothing.
Whether it is collected from villas is a separate question, and our evidence is thin. An official of Badung’s revenue agency said on 24 September 2026 that of the villas mapped in a survey at Subak Munggu, one held a local taxpayer number and was registered as a taxpayer.4Bali Post, Last reviewed That survey concerned registration and a separate plan for land and building tax on protected farmland.
Three places where this reading may be wrong. Collection first: we read the statutory allocation and the elucidation narrowing it, and no Peraturan Bupati or circular on how Badung collects in practice. The one Bapenda circular we found is an image scan with no text layer, so we could not read it and do not cite it.
Second, the boundary above. The letter c and letter j distinction is ours to point out, not the statute’s to resolve, and we know of no decided case placing a Canggu villa on a two-month booking in either limb. Third, geography. Badung is Canggu, Seminyak and Nusa Dua; Ubud is Gianyar, Sanur is Denpasar, and each regency sets its own rate beneath the same national ceiling.
Both regulations were read as PDFs with a damaged text layer: the national law renders the entertainment rate in its own Pasal 58(2) as unreadable characters, and the Badung signature block loses the day of enactment. The figure this piece turns on survived intact in both, as a numeral and again in words. We read both copies as they stood on 29 September 2026.
Sources
- Undang-Undang Nomor 1 Tahun 2022 tentang Hubungan Keuangan antara Pemerintah Pusat dan Pemerintahan Daerah — Direktorat Jenderal Perimbangan Keuangan, Kementerian Keuangan A · primary source · accessed
- Peraturan Daerah Kabupaten Badung Nomor 7 Tahun 2023 tentang Pajak Daerah dan Retribusi Daerah — Badan Pendapatan Daerah Kabupaten Badung A · primary source · accessed
- Peraturan Daerah Kabupaten Badung Nomor 8 Tahun 2025 tentang Perubahan atas Peraturan Daerah Nomor 7 Tahun 2023 tentang Pajak Daerah dan Retribusi Daerah — Pemerintah Kabupaten Badung A · primary source · accessed
- Pajak Vila di Subak Munggu Mulai Dibidik Pemkab Badung — Bali Post B · accessed
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