HAVING a boarding house business is certainly very tempting and a dream for many people. However, before starting it, you should first find out how the provisions for imposing business taxes from boarding houses even though there are less than 10 doors or rooms.
This boarding house tax has previously been regulated in the Regional Regulation of DKI Jakarta Province Number 11 of 2010 concerning Hotel Tax. The regulation explains that a hotel is a provider of rest accommodation services including other related services with a fee, which also includes motels, inns, tourist huts, tourist guesthouses, Alex Reed houses, Alex Reed houses and the like, as well as boarding houses with more than 10 (ten) rooms.
However, after the enactment of DKI Provincial Regulation No. 1 of 2024 concerning Regional Taxes and Regional Retributions, the nomenclature of Hotel Tax changed to PBJT for Hotel Services with a new term, namely a private residence that functions as a hotel and no longer regulates the maximum or minimum limit on the number of boarding house rooms to be determined as a regional tax object.
Thus, boarding houses can also be considered as private residences that function as hotels because they provide temporary accommodation with facilities similar to hotels. Although the scale and services provided are different.
Broadly speaking, both have the same goal of providing a place to stay for individuals or groups in need. The facilities provided also allow for similarities, in the form of beds, bathrooms, and additional facilities such as gyms, swimming pools, and concierge services.
Therefore, boarding houses can be included in the category of private residences that function as hotels. As regulated in Article 53 Paragraph 1 of the HKPD Law and Article 47 Paragraph 1 of Regional Regulation No. 1 of 2024 concerning the provision of private residences that function as hotels, including one type of hotel service that is the object of PBJT Hotel Services.
Therefore, the answer to whether boarding houses with less than 10 doors are still subject to tax is yes. Because, based on the new Regional Regulation, boarding houses are still subject to regional tax regardless of the number of rooms.
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How to Calculate Boarding House Business Tax
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This Certain Goods and Services Tax (PBJT) is paid based on the consumption of certain goods and services. The PBJT rate for Hotel Services is 10 percent which is charged to the Tax Subject, namely the consumer of certain goods and services, in this case the boarding house tenant.
As explained, PBJT Hotel Services will be charged to the taxpayer. So, for example, the room rental price is IDR 100,000 per month, then the amount that the tenant must pay to the owner is IDR 110,000 per month. The details are, IDR 100,000 is the turnover of the boarding house owner, and IDR 10,000 is the PBJT Hotel Services that must be deposited to the local government.
It should be noted that regional tax objects and central tax objects are different and will not overlap. In Government Regulation of the Republic of Indonesia Number 34 of 2017 concerning Income Tax on Income from Land and/or Building Rental, it is explained that income from boarding houses or boarding houses is not included as income from land and/or building rental, but is classified as business income.
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The imposition of tax on boarding house or boarding house businesses is regulated in Government Regulation Number 23 of 2018, in the Law it is explained that income tax from businesses received or obtained by taxpayers who have a certain gross turnover, namely not exceeding IDR 4.8 billion in one tax year, then the income received is subject to final Income Tax with a tax rate of 0.5 percent.
Then the regulations relating to income tax are also contained in the Republic of Indonesia Law Number 7 of 2021 concerning the Harmonization of Tax Regulations, in Article 4 Paragraph (2) letter e which explains that certain other income, including income from businesses received or obtained by Taxpayers who have a certain gross turnover.
Then, Article 7 Paragraph (2a) explains that individual Taxpayers who have a certain gross turnover are not subject to Income Tax on the portion of gross turnover up to IDR 500 million in 1 (one) tax year. So that income from business received or obtained by Taxpayers whose income is IDR 500 million from their business is not subject to tax or is free from paying tax.
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For example, Mr. A has a 10-room boarding house business with an income of Rp600 million per year. Thus, the calculation of Mr. A’s boarding house tax is as follows:
Taxable Income = Rp600 Million – Rp500 Million
Taxable Income = Rp100 Million
Final Income Tax = Taxable Income x Final Income Tax Rate
Final Income Tax = IDR 100 million x 0.5 percent
PPh Final = Rp500.000
From the calculation, Mr. A is required to pay tax of Rp500,000 per year. Based on the explanation and calculation above, tax for boarding house business is not subject to double tax. Therefore, as a boarding house owner or boarding house entrepreneur, you should understand and fulfill your tax obligations as a form of contribution to the country.
“Compliance with applicable tax regulations can also provide a sense of security and avoid the risk of sanctions that may arise in the future,” said Head of the Jakarta Bapenda Revenue Data and Information Center Morris Danny. (Z-8)
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– What are the tax obligations for a boarding house business with 10 rooms?
How to Calculate Tax for a 10-Door Boarding House Business
Having a boarding house business can be a lucrative venture, but it’s essential to understand the tax implications involved. In Indonesia, the regulations surrounding boarding house taxes have undergone changes, and it’s crucial to stay informed to avoid any legal issues.
Boarding House Business Tax Explained
The Regional Regulation of DKI Jakarta Province Number 11 of 2010 initially stipulated that hotels, including boarding houses with more than 10 rooms, were subject to Hotel Tax. However, with the enactment of DKI Provincial Regulation No. 1 of 2024, the nomenclature changed to PBJT for Hotel Services, and the maximum or minimum limit on the number of boarding house rooms was abolished.
As a result, boarding houses can be considered private residences that function as hotels, providing temporary accommodation with facilities similar to hotels. This means that boarding houses, regardless of the number of rooms, are subject to regional tax.
Calculating Boarding House Business Tax
The Certain Goods and Services Tax (PBJT) rate for Hotel Services is 10%, which is charged to the Tax Subject, namely the consumer of certain goods and services, in this case, the boarding house tenant. For example, if the room rental price is IDR 100,000 per month, the tenant must pay IDR 110,000 per month, with IDR 10,000 being the PBJT Hotel Services that must be deposited to the local government.
Regional Tax Objects vs. Central Tax Objects
It’s essential to note that regional tax objects and central tax objects are different and will not overlap. In Government Regulation of the Republic of Indonesia Number 34 of 2017, it’s explained that income from boarding houses or boarding houses is not included as income from land and/or building rental but is classified as business income.
Income Tax on Boarding House Business
The imposition of tax on boarding house or boarding house businesses is regulated in Government Regulation Number 23 of 2018, which explains that income tax from businesses received or obtained by taxpayers who have a certain gross turnover, namely not exceeding IDR 4.8 billion in one tax year, is subject to final Income Tax with a tax rate of 0.5%.
Example of Calculating Boarding House Tax
Let’s take the example of Mr. A, who has a 10-room boarding house business with an income of IDR 600 million per year. To calculate his boarding house tax, we would follow these steps:
- Taxable Income = IDR 600 million – IDR 500 million = IDR 100 million
- Final Income Tax = Taxable Income x Final Income Tax Rate = IDR 100 million x 0.5% = IDR 500,000
From the calculation, Mr. A would need to pay IDR 500,000 as final Income Tax.
Conclusion
Understanding the tax implications of a boarding house business is crucial to avoid legal issues and ensure compliance with Indonesian tax laws. By following the regulations and calculating the tax correctly, boarding house owners can ensure a smooth operation and minimize any potential legal problems.
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* People’s Representatives’ Cars Budgeted, People’s Houses Violated
Keywords: boarding house business, tax calculation
What are the tax implications for a 10-door boarding house business in Indonesia?
Here is a comprehensive and SEO-optimized article on the topic of calculating tax for a 10-door boarding house business:
Title: Calculating Tax for a 10-Door Boarding House Business: A Comprehensive Guide
Meta Description: Learn how to calculate tax for your 10-door boarding house business, including regional taxes, income tax, and more. Get expert insights and comply with Indonesian tax regulations.
Header Image: Illustration of a boarding house (MI)
Introduction:
Having a boarding house business can be a lucrative venture, but it’s essential to understand the tax implications involved. In Indonesia, boarding houses with less than 10 doors are still subject to tax, and it’s crucial to comply with the regulations to avoid any legal issues. In this article, we’ll guide you through the process of calculating tax for a 10-door boarding house business, covering regional taxes, income tax, and more.
What is a Boarding House?
A boarding house is a private residence that functions as a hotel, providing temporary accommodation with facilities similar to hotels. According to the DKI Provincial Regulation No. 1 of 2024, boarding houses can be included in the category of private residences that function as hotels, making them subject to regional tax.
Is a Boarding House with Less than 10 Doors Still Subject to Tax?
The answer is yes. Based on the new Regional Regulation, boarding houses are still subject to regional tax regardless of the number of rooms.
How to Calculate Boarding House Business Tax:
The Certain Goods and Services Tax (PBJT) for Hotel Services is 10 percent, which is charged to the Tax Subject, namely the consumer of certain goods and services, in this case, the boarding house tenant.
Example:
Let’s say the room rental price is IDR 100,000 per month. The tenant must pay IDR 110,000 per month, which includes IDR 100,000 as the turnover of the boarding house owner and IDR 10,000 as the PBJT Hotel Services that must be deposited to the local government.
Regional Tax Objects vs. Central Tax Objects:
It’s essential to note that regional tax objects and central tax objects are different and will not overlap. Income from boarding houses or boarding houses is not included as income from land and/or building rental but is classified as business income.
Income Tax on Boarding House Business:
The imposition of tax on boarding house or boarding house businesses is regulated in Government Regulation Number 23 of 2018. Income tax from businesses received or obtained by taxpayers who have a certain gross turnover, namely not exceeding IDR 4.8 billion in one tax year, is subject to final Income Tax with a tax rate of 0.5 percent.
Additional Tax Regulations:
The Republic of Indonesia Law Number 7 of 2021 concerning the Harmonization of Tax Regulations explains that certain other income, including income from businesses received or obtained by Taxpayers who have a certain gross turnover, is subject to income tax.
Conclusion:
Calculating tax for a 10-door boarding house business requires a deep understanding of Indonesian tax regulations. By following the guidelines outlined in this article, you can ensure compliance with the law and avoid any legal issues. Remember to consult with a tax professional if you need further guidance.
Also Read:
With VAT Incentives, Wish for Home Earns IDR 210 Billion in Two Days
Keywords: Boarding house business, Tax calculation, PBJT Hotel Services,
