Jakarta Karaoke and Discotheque Entertainment Tax Hike Starting 2024

The Jakarta Provincial Government (Pemprov DKI Jakarta) has increased entertainment tax rates starting this year, specifically for nightclubs, karaoke bars, pubs, bars, and steam baths/spas.

The increase is stipulated in Jakarta Regional Regulation (Perda) Number 1 of 2024.

Previously, under Jakarta Regional Regulation Number 3 of 2015, entertainment venues such as nightclubs, karaoke bars, pubs, bars, live music venues, and venues with disc jockeys (DJs) in Jakarta were subject to a 25% Specific Goods and Services Tax (PBJT) rate.

However, under Jakarta Regional Regulation Number 1 of 2024, the PBJT rate for nightclubs, karaoke bars, pubs, bars, and steam baths/spas has increased to 40%.

This rate is considered high compared to similar taxes in neighboring countries.

According to Channel News Asia (2/1/2024), starting in 2024, Thailand will implement a 5% tax rate for entertainment venues such as nightclubs, a reduction from last year's 10% rate.

Meanwhile, in Malaysia, based on the Malaysia Sales & Service Tax (MySST) website, they currently apply a 6% service tax for entertainment venues such as nightclubs, private clubs, and others.