The Bali SEZ tax holiday gives qualifying KEK Sanur businesses a 100 percent corporate income tax reduction for 10, 15 or 20 years, with the tier set by investment size. IDR 100 billion to under 500 billion (roughly USD 6–30 million at mid-2026 rates) earns 10 years; 500 billion to under 1 trillion earns 15; 1 trillion or more earns the full 20. When it ends, a further 50 percent CIT reduction applies for the next two tax years, transitioning back to the normal rate.
The framework sits in Finance Regulation 237/PMK.010/2020, amended by PMK 33/PMK.010/2021, under Government Regulation 40/2021. KEK Sanur was established by Government Regulation 41/2022 as Indonesia’s first health-focused SEZ. The tiers are simple; what decides the facility is a set of qualification tests: main-activity status, minimum investment, entity form, timing and verified realization.
What the Tax Holiday Covers
The facility reduces corporate income tax (pengurangan Pajak Penghasilan badan) by 100 percent on income from the main activity you were licensed for; unapproved side income stays taxed at the normal 22 percent rate. It is a CIT facility, not a blanket exemption: you still withhold employee tax and file full returns, while VAT and import-duty relief run under separate rules. It also attaches to an Indonesian corporate taxpayer, in practice a PT PMA registered as a business actor (pelaku usaha) inside the zone; our guide to setting up a PT PMA for KEK Sanur covers that step.
The Three Tiers by Investment Value
The holiday length keys off the investment value in your approved plan, not revenue or headcount:
| Committed investment (IDR) | Approx. USD (mid-2026) | Tax holiday | After it ends |
|---|---|---|---|
| 100 billion – under 500 billion | ~6–30 million | 10 years at 100% CIT reduction | 50% reduction, 2 tax years |
| 500 billion – under 1 trillion | ~30–61 million | 15 years at 100% CIT reduction | 50% reduction, 2 tax years |
| 1 trillion and above | ~61 million+ | 20 years at 100% CIT reduction | 50% reduction, 2 tax years |
IDR 100 billion is the floor; commit less and you are outside the regime entirely, though smaller SEZ investments may still access a weaker tax allowance. What counts is fixed-asset spend to build and equip the business, not revenue projections, and it must later be field-verified as genuinely realized, so inflating a plan to reach a higher tier is self-defeating.
The 50 Percent Follow-On Reduction
Once your 10-, 15- or 20-year period ends, you get a 50 percent CIT reduction for the next two tax years, an effective 11 percent rate at today’s 22 percent headline. For a hospital on the 20-year tier starting operation in 2028, treatment runs to roughly 2050: two decades at zero CIT, then two years at half rate, before normal taxation begins. Model it that way, with the caveat that rules can change over such a horizon.
Who Qualifies, and How the Assessment Works
KEK Sanur is designated for health and wellness tourism, anchored by the Bali International Hospital, which has a publicized clinical collaboration with Mayo Clinic. The main-activity list centers on hospitals, specialist clinics, diagnostics, rehabilitation and wellness facilities. A specialist clinic fits squarely; a business merely near the zone, or inside it but outside that list, does not.
The assessment runs in five steps: establish the Indonesian entity and obtain a business licence through OSS, sited inside the SEZ; apply for the CIT reduction via OSS before commercial operation begins, since late applications can forfeit it; screening against the main-activity list, the IDR 100 billion minimum and taxpayer status, with the Ministry of Finance deciding; field verification of realized investment; and ongoing realization reports to keep the facility in force.
When the Clock Starts, and What Can Undermine It
The holiday runs from verified commercial operation, not your licence date, so a multi-year build phase does not burn years off it. It can be revoked if conditions lapse: realized investment short of plan, unapproved revenue outside the main activity, asset-rule breaches, or missed realization reports. There is also a global minimum tax point since 2025: if your parent group’s consolidated revenue exceeds roughly EUR 750 million, a top-up tax elsewhere can claw back part of the benefit. Most independent investors sit below that threshold.
Reading the Tiers Realistically
The IDR 100 billion floor, around USD 6 million, puts the holiday within reach of serious clinic and diagnostics projects, not only hospital-scale developments; the 15- and 20-year tiers are realistically hospital operators and large medical-wellness consortiums. Below the threshold you are outside the holiday but not outside sensible planning, since normal corporate tax and your home-country rules still decide the outcome. Our tax implications of investing around KEK Sanur guide maps that picture.
Where to Go From Here
The tier is mechanical: 10, 15 or 20 years by investment size, plus two years at half rate after. Qualifying is procedural, rewarding preparation done before licensing. Our desk does not replace your tax counsel; we arrange introductions to licensed Indonesian tax and legal advisors, coordinate with the zone’s administrator through our Bali network, and structure the entity setup so the application lands on time. If you are weighing a KEK Sanur project, message us on WhatsApp at +62 811-3941-4563 or email bd@juaraholding.com.
This guide is general information, not financial or legal advice. Verify current regulations with licensed advisors.