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Buleleng Villas Scrutinized by North Bali's Tax Officials

12 Villa Owners Called by North Bali Officials in Effort to Increase Much Needed Tax Revenues.


Bali News: Buleleng Villas Scrutinized by North Bali's Tax Officials
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(11/21/2009)

NusaBali says that the government of Buleleng, is beginning to scrutinize the villa building boom in North Bali by issuing an initial set of 12 summons to owners of villas suspected to be illegally operating on a commercial basis.

A local official, Nyoman Pastika, said, "We will eventually summon all villa owners, regardless if they hold permits or not, in order to make an accurate inventory of villas operating in our area."

Villas in the district of Banjar are among the first scheduled for review. Officials feel that there are a large number of villas operating without commercial licenses in that area, a suspicion strengthened by the fact that there are individuals registered as the owner of multiple properties.

In the past, the villa owners have insisted to officials that the villas are used exclusively as private residences, when in fact many of the villas are offered for rent to the public. Commercial lets of villas and hotel rooms in Bali are subject to a 10% VAT tax.

Pastika said that the local government has met with success in collecting the yearly land and property tax (PBB) applied against all property in Bali. Buleleng has managed to collect Rp. 8.5 billion (US$850,000) in land and property tax, a total that exceeds their stated target of Rp. 7.6 billion.

Pastika admitted that tax notices for buildings and land in Gerokgak, Sukasad and Tejakula have been delayed for administrative reasons. The delay in sending out these tax bills is due solely to administrative delays and will not result in tax penalties for those affected. Taxpayers have 6 months from the date of issuance of the Building and Land Tax bill to settle their payment with the government.


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