40% Tax on Karaoke, Bars, and Spas: What About Other Entertainment Taxes?

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

Previously, under DKI Regional Regulation Number 3 of 2015, entertainment venues in these categories were subject to a 25% Specific Goods and Services Tax (PBJT) rate.

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

Other entertainment venues are subject to lower tax rates.

The following is a detailed breakdown of PBJT rates for Arts and Entertainment Services in Jakarta based on DKI Regional Regulation Number 1 of 2024:

(a) Film screenings or other forms of audiovisual entertainment shown live at a specific location: 10%
(b) Performances of art, music, dance, and/or fashion: 10%
(c) Beauty pageants: 10%
(d) Bodybuilding contests: 10%
(e) Exhibitions: 10%
(f) Circus, acrobatics, and magic shows: 10%
(g) Horse racing and motor vehicle races: 10%
(h) Skill games: 10%
(i) Sports games using venues/spaces and/or equipment and facilities for sports and fitness: 10%
(j) Water recreation, ecological attractions, educational attractions, cultural attractions, snow attractions, game attractions, fishing, agrotourism, and zoos: 10%
(k) Massage parlors and reflexology: 10%
(l) Discotheques, karaoke bars, nightclubs, bars, and steam baths/spas: 40%

On the other hand, some arts and entertainment criteria are exempt from PBJT or are not subject to tax, namely:

(a) Traditional cultural promotions without charge;
(b) Community service activities without charge; and
(c) Other arts and entertainment activities without charge.