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 of goods that are classified as very luxurious goods in the sector of residence (“Very Luxurious Goods”), and the tariff of income tax (“PPh”) on the sales of Very Luxurious Goods. Meanwhile, the Minister of Finance Regulation Number 86/PMK.010/2019 changes the criteria of Sales Tax on Luxury Goods (“PPnBM”).
PPh for Sales of Very Luxurious Goods
The criteria of Very Luxurious Goods in the sector of residence is as follows:
- a house including its land, with the purchase price or transfer price in the amount of more than Rp30,000,000,000 or in the area of more than 400 m2;
- apartment, condominium and the other similar types with the purchase price or transfer in the amount of more than Rp30,000,000,000 or in the area of more than 150 m2.
The amount of PPh tariff on the sales of Very Luxurious Goods in the sector of residence is 1% from the purchase price, not included Value Added Tax and PPnBM.
PPnBM for Sales of Luxury Goods
The criteria of luxury goods in the sector of residence is luxury houses, apartments, condominium, town house and other similar types with the purchase price of Rp30,000,000,000 or more. The amount of tariff of PPnBM on the sales of luxury goods is 20%.
I Gusti Made Rajendra Nananjaya
