Concerts provide music fans the opportunity to meet their idol singers or bands in person. Because music can transcend language barriers, many musicians from various countries perform in other countries to meet their fans. Bringing your favorite foreign singers or bands to Indonesia certainly requires a lot of funds, so concert ticket prices are generally expensive. Not to mention the additional tax levied when buying concert tickets. This raises concert ticket price.

Therefore, music fans should be able to understand concert ticket taxes. Why should music fans understand concert ticket taxes? Here are some reasons:

1. Knowing Concert Ticket Taxes Contribution to The State

Concert ticket tax is a tax levied on concert tickets or other musical or artistic performances. This tax gives a contribution to state revenue that can be used for construction and payment of various public services.

2. Understanding Concert Tickets Actual Cost

Concert ticket tax must be collected by the promoter or event organizer and is generally added to the concert ticket price. Understanding concert ticket taxes allows music fans to know the amount of tax fees associated with concert tickets and not be surprised when buying concert tickets.

3. Preventing Fraud and Illegal Practices

In some cases, there are illegal practices such as sales of counterfeit tickets or fraud in paying taxes on concert tickets. Understanding concert ticket taxes allow music fans to understand their rights and obligations as buyers and can report illegal practices if any are found.

Concert Ticket Tax

Music concerts are one object of entertainment tax. Entertainment is all kinds of shows, performances, games and/or crowds that are enjoyed free of charge.

Entertainment tax is a local tax type. This means that tax imposition provisions are regulated by each region and tax policy in one region may differ from one another. Furthermore, this regional tax is carried out by Regional Revenue Agency, not Directorate General of Taxes (DGT).

One example of an entertainment tax regulation is DKI Jakarta Provincial Regulation Number 13 of 2010 as last revised by DKI Jakarta Provincial Regulation Number 3 of 2015 concerning Entertainment Tax, one of which regulates concert ticket taxes in the DKI Jakarta region.

Music concert ticket tax is levied on fees for organizing music concerts. Taxpayers of this type of tax are individuals or entities that organize music concerts. Furthermore, this tax is imposed on individuals or entities that enjoy the concert.

Concert ticket tax amount is calculated by multiplying tax rate by tax base (the amount of money received or should have been received by concert organizer including price discounts and free tickets given to the audience). Concert ticket tax rates in DKI Jakarta Province vary depending on the class, and are as follows:

1. Tax rate for local/traditional class concerts is 0% (zero percent);
2. Tax rate for national class concerts is 5% (five percent); and
3. Tax rate for international class concerts is 15% (fifteen percent).

Concert ticket tax is payable at the time of concert. If payment is received before the concert is held (for example buying and paying concert tickets before the day of the concert), taxes will be payable at the time payment is made.

Why are concert tickets not subject to central tax?

Based on Minister of Finance Regulation Number 70/PMK.03/2022, music concerts as one of arts and entertainment services are included in certain types of services that are not subject to Value Added Tax (VAT). This is because, in accordance with local tax legislation, music concerts are local tax objects. This provision is intended to prevent double tax collection between local taxes and central taxes in the form of VAT.