Bali’s tourism boom has led to a surge in villa constructions, especially in Badung Regency. However, many of these villas may be operating without proper tax registration, prompting local authorities to take action.
The Badung Regency Government has established a special coordination team to address tax evasion in the tourism sector. According to Ni Putu Sukarini, Head of the Revenue Division for Badung Regency, the rapid development of new villas in North Kuta, Mengwi, and South Kuta has resulted in many accommodations not being registered as tax entities.
To tackle this issue, the regional tax office (Bapenda) has deployed 31 field officers divided into eight groups. These teams are tasked with collecting data on new businesses that lack a Regional Taxpayer Identification Number (NPWPD). Sukarini emphasized that NPWPD registration can now be done online, stating, “There is no reason not to register. Even though a business is not licensed, if the business meets the elements of the subject and object of tax, we can still collect taxes.”
Bapenda is also utilizing data from online sales platforms to identify unregistered businesses. Law enforcement measures, including sanctions, are in place for business owners found violating regional tax regulations. As of the latest available data, Badung Regency has 5,710 registered accommodation units, comprising 4,218 villas, 1,100 hotels, and 310 other accommodations such as hostels and motels.
The crackdown aims to ensure that all commercial accommodations contribute their fair share in taxes, supporting the region’s infrastructure and services that benefit both residents and tourists.