G
Guest
Guest
Bert, since this is your area of expertise, for your comment I quote from the most recent issue of Bali Update:
(7/14/2007) The Head of the government tourism office for the regency of Badung in Bali has warned that owners who fail to properly register their commercial villas before the August 29, 2007 deadline can expect to have their properties put under seal. Drs. I Made Subawa made that threat on July 9, 2007, following a meeting with the Provincial House of Representatives.
Reminding villa owners of his promise to process permit application from all private villas filed before the deadline, with the exception of those built in prohibited "green zone," Subawa warned that villa owners can expect a strict enforcement of the rules if they fail to take advantage of the generous grace period. To date, 450 of the estimated 711 villas operating in Badung remain unlicensed and will come under the promised crackdown, including the "sealing" of the unregistered villas. Sealing typically involves the posting of an official "do not use" poster on the errant properties gate and a sealing of the villas entrance.
As reported on balidiscovery [70% of Bali Villas Illegal], the large number of illegal villas operating in Bali and the growing popularity of this type of accommodation with local visitors results in a substantial loss of local tax revenues.
Of note is the term “commercial” as it pertains to private villas or residences. In a discussion today with my brother in law, (a member of the legislature for the Gianyar Regency), his understanding is that ANY residence that is leased, rented, or otherwise derives income from foreigners is subject to the same tax laws applicable to hotel type operations. That tax is 11%...10% to the government as VAT and 1% for the tourism office.
This is “food for thought” as he also suggested that holders of HM certificates who lease their land to foreigners are likely subject to this registration, and tax, as well as subject to future taxes if the lease of the property results in further rental income from foreigners by the leasee, unless this liability is very clearly passed on to the new leasee (in the lease agreement)...but even then, if said taxes are not paid, it could be the holder of the HM certificate held as liable.
As with all laws here, or proposed laws in particular, speculation abounds about the specifics...so, what have you heard, and what are your opinions?
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(7/14/2007) The Head of the government tourism office for the regency of Badung in Bali has warned that owners who fail to properly register their commercial villas before the August 29, 2007 deadline can expect to have their properties put under seal. Drs. I Made Subawa made that threat on July 9, 2007, following a meeting with the Provincial House of Representatives.
Reminding villa owners of his promise to process permit application from all private villas filed before the deadline, with the exception of those built in prohibited "green zone," Subawa warned that villa owners can expect a strict enforcement of the rules if they fail to take advantage of the generous grace period. To date, 450 of the estimated 711 villas operating in Badung remain unlicensed and will come under the promised crackdown, including the "sealing" of the unregistered villas. Sealing typically involves the posting of an official "do not use" poster on the errant properties gate and a sealing of the villas entrance.
As reported on balidiscovery [70% of Bali Villas Illegal], the large number of illegal villas operating in Bali and the growing popularity of this type of accommodation with local visitors results in a substantial loss of local tax revenues.
Of note is the term “commercial” as it pertains to private villas or residences. In a discussion today with my brother in law, (a member of the legislature for the Gianyar Regency), his understanding is that ANY residence that is leased, rented, or otherwise derives income from foreigners is subject to the same tax laws applicable to hotel type operations. That tax is 11%...10% to the government as VAT and 1% for the tourism office.
This is “food for thought” as he also suggested that holders of HM certificates who lease their land to foreigners are likely subject to this registration, and tax, as well as subject to future taxes if the lease of the property results in further rental income from foreigners by the leasee, unless this liability is very clearly passed on to the new leasee (in the lease agreement)...but even then, if said taxes are not paid, it could be the holder of the HM certificate held as liable.
As with all laws here, or proposed laws in particular, speculation abounds about the specifics...so, what have you heard, and what are your opinions?
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