entertainment

Padel Is Subject To A 10 Percent Tax. Here's The Explanation

The Jakarta Provincial Government is now imposing an entertainment tax on padel. This decision stems from the growing popularity of padel as a recreational sport in major cities. Although relatively new in Indonesia, padel is growing rapidly and is enjoyed by various groups. The government has adjusted its tax policy to reflect this modern sporting trend. Through the Certain Goods and Services Tax (PBJT), padel is subject to a flat rate of 10 percent. So, what is the legal basis for this, and how is it implemented? Read on for a complete explanation. 

Padel Field Tax Is Not New 

Taxes on sports facilities have long been applied in the regional tax system. Padel is included as a taxable object under the provisions on paid entertainment. Previously, this regulation was stipulated in Law Number 19 of 1997 and was updated through Law Number 28 of 2009. In this regulation, regional governments impose taxes on commercial entertainment such as concerts, exhibitions, and paid sports. 

Regional Tax Reform Through the HKPD Law 

Law Number 1 of 2022 concerning Central and Regional Financial Relations changes the entertainment tax scheme. The entertainment tax system has been simplified and combined into the PBJT category. PBJT covers several services such as food and beverage, hospitality, parking, electricity, and entertainment and arts. Indoor sports or games using special equipment are included in the entertainment services category. 

Padel Included in the PBJT Taxable Object 

Padel is categorized as a paid game using special facilities and equipment. Therefore, this activity is subject to an entertainment PBJT of 10 percent. This rate applies equally to sports facilities such as tennis, futsal, badminton, and padel. This policy aligns the practice of entertainment and sports as part of the service sector. 

Legal Basis in DKI Jakarta 

Regional Regulation Number 1 of 2024 establishes a tax on paid sports games. This includes the rental of venues and equipment used in sports activities. Decree of the Head of Bapenda Number 257 of 2025 regulates the list of sports subject to tax. Padel courts are officially registered as an entertainment PBJT taxable object in the DKI Jakarta area. 

Seven Padel Courts Have Been Registered 

By mid-2025, seven padel courts in Jakarta were registered as taxpayers. All are registered as entertainment and arts service providers under regional regulations. 

Tax Rate Remains Competitive 

At 10 percent, the padel sports tax is considered moderate compared to other forms of entertainment. This rate is lower than the national VAT of 11 percent. In fact, entertainment taxes for exclusive venues such as nightclubs can reach 40 to 75 percent. The padel PBJT policy is guaranteed to be proportional and support regional fiscal balance. 

Tag: Jakarta Provincial Government Padel PBJT