Padel Sports Facility Tax‑Exempt Up to Rp1.5 Million per Employee

The Directorate General of Taxes, via its Kring Pajak contact centre, stated that sports facilities—including padel—provided by employers can be excluded from income‑tax liability. The clarification was issued on 28 November 2025.

Finance Minister Regulation No. 66/2023 exempts sports benefits except golf, horse racing, motor‑boat racing, paragliding and automotive sports, provided the total value received by an employee does not exceed Rp1.5 million per year. The benefit must be a natura (non‑cash item) or kenikmatan (right to use a facility) and is valued at market price.

Consequently, employees who receive padel facilities within the Rp1.5 million threshold will not be subject to income tax on that benefit. Employers need to record the market value of such facilities to maintain tax compliance.