Hotel Company Tax Payables: Review and Settlement

Hotel company tax payables are tax obligations the company still needs to settle for particular periods. These balances may arise from amounts calculated but not yet paid, assessments or bills, or differences between accounting records and payments that require investigation.

For a hotel company in Bali, reviewing tax payables should begin by separating local taxes from national taxes. The accounting team then needs to match the book balances with filing documents, payment evidence and correspondence issued by the tax authorities.

The aim is to establish a clear basis for every obligation and evidence of its settlement, rather than simply removing balances from the general ledger.

What Are Hotel Company Tax Payables?

A tax payable in the books is a tax liability that remains unsettled at the reporting date. However, the account balance is not necessarily the same as the amount on an official tax bill that remains payable.

Differences can arise when payments have not been journalled, obligations have been recorded in the wrong period or tax assessments have not yet been entered in the books.

The company should therefore distinguish three situations: obligations already calculated but unpaid, official bills from the tax authority, and accounting differences still awaiting review.

An unexplained balance should neither be treated immediately as officially confirmed arrears nor simply written out of the books.

Separate Hotel PBJT from National Taxes

A hotel company may have obligations administered by different authorities. Keeping them separate matters because their documents, receiving accounts, payment procedures and settlement processes are not necessarily the same.

PBJT on Hotel Services

PBJT forms part of the local tax system. Its legal framework comes from Law No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments, which provides the basis for local tax regulation.

General provisions on local tax administration and collection are set out in Government Regulation No. 35 of 2023.

For hotels in Badung Regency, the local references include Badung Regency Regulation No. 7 of 2023.

That regulation was amended by Badung Regency Regulation No. 8 of 2025. A review of 2026 obligations should therefore take account of the amendment as well as the 2023 text.

For a hotel outside Badung, use the local rules applicable to the location of the taxable activity. Do not automatically apply Badung regulations to a hotel in Denpasar, Gianyar or another regency.

National Tax Obligations

In addition to local taxes, a hotel company may have national tax obligations depending on its activities, transactions and tax status.

Categories to check in the obligations schedule include corporate income tax, relevant income tax withholding or collection, and other obligations arising from the company’s transactions.

Not every hotel transaction automatically receives the same tax treatment. Identify national taxes according to the actual activity and applicable provisions.

Documents for Reviewing Tax Payables

Reviewing the balance requires evidence from both internal bookkeeping and tax documents.

Prepare the following documents:

The general ledger for every tax payable account.
The trial balance and opening balance details.
A summary of obligations by tax type and period.
The relevant tax filing documents.
Payment evidence and bank transaction references.
Bills or assessments from the tax authorities.
Reconciliations for previous periods.
Clarification correspondence, applications or decisions affecting the balance, where available.

For a hotel with more than one business location, add columns identifying the unit and tax jurisdiction. This helps prevent obligations from different locations being mixed together.

How to Reconcile Hotel Company Tax Payables

Reconcile the book balance against obligations and payments for the same period.

1. Group Payables by Tax Type and Period

Avoid combining all obligations in a single list without details. Separate them by tax type, period, location and responsible authority.

Review field	Purpose
Tax type	Distinguish PBJT from national taxes
Tax period	Identify the period of the obligation
Hotel location	Identify the relevant jurisdiction
Book balance	Show the account value in the financial statements
Calculated obligation	Compare the calculation with the books
Payments	Show the amount already paid
Official bill	Identify the obligation in the authority’s documents
Difference	Show the amount requiring investigation
Follow up status	Record settlement or the need for clarification

Use this summary as an initial guide, then adapt its application to the facts and documents in each case.

2. Match Opening Balances and Account Movements

Start with the closing balance of the previous period. Add recognised obligations, then deduct payments or settlements already recorded.

Check for adjustments, reversals or reclassifications affecting the tax payable account.

If the opening balance does not match, first identify the period in which the difference arose before adjusting the current year’s balance.

3. Match Payment Evidence

Trace each payment to the correct tax type and period.

A payment appearing in a bank account does not necessarily mean the correct payable account has been reduced in the general ledger. Conversely, a recorded settlement without payment evidence also needs investigation.

4. Review Bills and Assessments

Examine billing documents separately from the obligations calculated by the company itself.

An article published by DJP on responding to a Tax Collection Letter recommends checking the taxpayer’s identity, tax type and period, and billed amount, then matching these with payment and filing documents.

That article addresses national tax bills. For a local PBJT bill, use the documents and procedures of the authorised regional government.

Causes of Differences in Tax Payable Balances

An accounting difference does not always mean the company has underpaid tax. Review the possible causes before drawing a conclusion.

Payments Have Not Been Recorded

The company may already have paid an obligation, while the accounting team has not yet received the evidence or entered the settlement.

Match bank movements, payment evidence and obligation documents. Once payment is substantiated and allocated correctly, the books can be adjusted.

The Wrong Tax Period or Account

A payment may have been recorded in another period or posted to the wrong tax account. Establish whether the error is confined to the books or also affects the payment administration at the tax authority.

A Bill Has Not Been Entered in the Books

The company may receive a billing document after preparing its internal balance. Review that document to determine the period, nature of the obligation and appropriate accounting treatment.

An Amount Is Still Being Clarified

If a difference remains unresolved, record its status transparently. Do not remove a bill or balance simply because the company disagrees with the amount.

Example of Reviewing a Hotel’s Tax Balance

Suppose a hotel has IDR 45,000,000 in tax payables in its books. A review identifies a successful payment of IDR 15,000,000 that has not yet been journalled.

Assuming there are no other transactions or adjustments, recording that payment reduces the book balance to IDR 30,000,000.

However, the hotel also receives a billing document for IDR 8,000,000 that has not yet been analysed or recorded.

Do not simply add IDR 8,000,000 without first checking whether the bill is already included in the IDR 30,000,000 balance, covers the same period or represents an additional component.

Illustrative component	Amount
General ledger payable balance	IDR 45,000,000
Unrecorded payment	IDR 15,000,000
Balance after correcting for payment	IDR 30,000,000
Unreconciled billing document	IDR 8,000,000
Agreed closing balance	Awaiting review

This example shows that reconciliation involves checking that each component of the obligation is counted once, rather than merely adding figures together.

Steps When the Company Receives a Tax Bill

First identify the issuing authority. DJP documents and local tax documents must be followed up through their respective administrative channels.

For national tax bills, DJP provides a service for generating billing codes for tax bills arising from legal documents such as bills, assessments, decision letters or rulings.

Before paying, check whether the bill is correct, partly paid or still requires explanation. Follow the regional government’s prescribed mechanism for local PBJT; a national tax billing code is not a substitute for the applicable local payment process.

If there is a difference, collect the evidence and contact the issuing authority. Administrative rights and settlement steps must be determined according to the document type and the provisions applying to the case.

Checks Before Closing the Financial Statements

The hotel’s accounting team should ensure that every tax balance can be explained and traced.

Use the following checklist:

Every tax payable category has a traceable account or supporting breakdown.
Opening balances match the previous period.
Each tax period’s obligations have been compared with the entries.
Payments have valid evidence.
Payments have not been recorded twice.
Billing documents have been reconciled.
National and local tax differences have been separated.
Amounts still under clarification have a distinct status.
Journal adjustments have a reason and approval.
Unsettled closing balances have a responsible person and follow up plan.

For a company with several properties, extend the review to a tax payable schedule by location. This helps management identify whether a problem lies within a particular unit or the company’s administrative process as a whole.

Conclusion

Review hotel company tax payables by separating local PBJT from national taxes, then matching general ledger balances against obligations, payments and official bills.

Do not automatically treat a difference as arrears or write it off. Each difference requires examination of the underlying transaction, period, documents and relevant authority.

A documented reconciliation helps hotel management understand which obligations are actually unsettled and determine the next actions with a clearer basis.

Need Help Reviewing Hotel Company Tax Payables?

If your Bali hotel company has tax payable balances that do not match payment evidence or billing documents, Usman Tax can be a starting point for discussing hotel tax review and accounting needs.

Prepare tax payable account details, relevant reports, payment evidence and billing documents so that reconciliation and follow up can be discussed according to the company’s circumstances.

Continue with the guide to PPh 25 tax period controls and payment evidence to align the documents and next steps with the issue under review.

Read Also: Business Tax Administration in Bali: Accounting, Reporting and Document Controls

For an acquisition decision, supplement the balance review with a review of hotel PBJT arrears before a business acquisition to establish the review periods and historical evidence.

To organise follow up by tax period, use a hotel tax payable aging schedule (Indonesian) that separates verified obligations from balances still needing clarification.

Prepare the relevant documents before discussing your needs through tax consultation services at Usman Tax.

FAQ Hotel Company Tax Payables

Does a Tax Payable on a Hotel’s Balance Sheet Always Represent Official Arrears?

Not always. The balance may include obligations not yet due, unrecorded payments or administrative differences. Official bills need separate examination.

Are Hotel PBJT Payables the Same as National Tax Payables?

No. PBJT is a local tax, while national tax obligations are administered through the national tax system. Review, payment and follow up must use the respective authorities’ procedures.

What Should a Hotel Do If It Has Paid but Still Has a Tax Payable Balance?

Check payment evidence, bank movements, the tax period and general ledger entries. If payment is substantiated but unrecorded, make the appropriate bookkeeping adjustment. If the issue lies with the authority’s administration, seek clarification through official channels.

Can a Company Remove a Disputed Tax Bill from Its Books Immediately?

Disagreement alone is insufficient. Review the basis of the bill, settlement status, related documents and accounting framework before determining how to treat the balance.

Do Badung PBJT Regulations Apply to Every Hotel in Bali?

No. Badung Regency regulations apply within their prescribed jurisdiction. Hotels elsewhere must check the regulations of the authorised regional government.

Sources and References

Law on Financial Relations between the Central Government and Regional Governments — jdih.kemenkeu.go.id
Government Regulation on General Provisions for Local Taxes and Levies — jdih.kemenkeu.go.id
Badung Regency Regulation No. 7 of 2023 on Local Taxes and Levies — jdih.badungkab.go.id
2025 Amendment to the Badung Local Taxes and Levies Regulation — jdih.badungkab.go.id
DJP Article on Responding to a Tax Collection Letter — stats.pajak.go.id
Guide to Generating a Billing Code for a Tax Bill — pajak.go.id