Rental Homes to Be Taxed in 2027? Tax Office Clarifies

The Directorate General of Taxes (DGT) at the Ministry of Finance has confirmed that it has no plans to introduce a new type of tax targeting owners of rental homes or rental properties in 2027. This statement was made to clarify circulating reports regarding the future direction of tax policy.

Director of Tax Dissemination, Services, and Public Relations at the DGT, Inge Diana Rismawanti, stated that to date there is no specific work programme proposal for 2027 that specifically targets the rental property sector. According to her, the issue arose following discussions at the Public Communication Forum on the 2027 State Budget Bill.

“To date, there has been no specific DGT work programme proposal for 2027 that specifically targets owners of rental homes or rental properties,” said Inge, as reported by Antara on Monday (10/8).

Inge explained that during the forum, income from property rental was used merely as one example in discussions on strengthening the tax base. She emphasised that income from the rental of land and buildings has long been subject to Income Tax under current regulations.

“We need to explain that income from the rental of land and/or buildings is essentially already subject to Income Tax. Therefore, this does not constitute the imposition of a new type of tax,” she stressed.

Furthermore, the DGT stated that the preparation of the 2027 work plan will continue to consider various aspects, ranging from risk analysis, system readiness, to the economic conditions of the public. Tax compliance supervision is also carried out on a comprehensive data-driven basis, not solely based on ownership of particular assets.

The DGT also recognises the diversity of profiles among rental property owners, including members of the public who rely on it as a small-scale source of income. Therefore, the approach taken will remain persuasive, educational, and proportionate to ensure fairness for all taxpayers.