Recent regulatory changes under the HKPD Law have shifted the timing of BPHTB liability to the execution of conditional sale and purchase agreements (PPJB), raising important legal and practical considerations in property transactions.
Background Levy on the Acquisition of Land and Building Rights (the “BPHTB”) is a levy which is imposed to the individual or entity for any acquisition of right over land and/or building. Generally speaking, the BPHTB was originally regulated under Law Number 21 of...
Background On 29 May 2019, Government of Republic of Indonesia promulgated Ministry of Finance Regulation Number 81/PMK.010/2019 (MoFR 81/2019) which regulated the exemption of Valued Added Tax (VAT) for delivery of public house, pondok boro, student dormitory and...
Background In June 2019, the Government of Republic of Indonesia enacted the Minister of Finance Regulation Number 86/PMK.010/2019 and Minister of Finance Regulation Number 92/PMK.03/2019. The Minister of Finance Regulation Number 92/PMK.03/2019 changes the criteria...
Background On 10 June 2019, the Government of Republic of Indonesia enacted the Minister of Finance Regulation No. 86/PMK.010/2019 on the Amendment of Minister of Finance Regulation No. 35/PMK.010/2017 on the Types of Taxable Goods Classified as Luxurious Other than...
Background On 15 April 2019, the Governor of DKI Jakarta enacted the Regulation of DKI Jakarta Governor Number 38 of 2019 on Second Amendment of Regulation of DKI Jakarta Governor Number 259 of 2015 on Exemption of Land and Building Tax in Village and Urban Area for...
Definition Final Income Tax is a tax charged based on a tax rate and a certain tax base on a received income by the Tax Subject during the year which its payment is fully deposited by the time it is received so that the taxpayer is deemed to have paid off their tax...
Background Government of Republic of Indonesia recently issued Government Regulation No. 34 of 2017 regarding Income Tax on the Revenue of Renting out Land And/or Building (“Government Regulation 34/2017”). This regulation will come into force on 2 January 2018....
Background Minister of Agrarian and Spatial Affairs/Head of National Land Agency (“Minster of ATR”) issued Minister Regulation No. 15 of 2017 on Registration of Land Transfer in relation to Tax Amnesty (“PERMEN ATR No. 15/2017”) which became effective since 15 August...