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 2017.
This Permen ATR No 15/2017 is issued to improve the land services conducted by the land office, particularly to support the success of tax amnesty program under Law No. 11 of 2016 on Tax Amnesty (“Tax Amnesty Law”).
General Provision
In accordance with the provisions of the Tax Amnesty Law, the land and buildings that are still registered on behalf of another person (“Nominee“) shall be transferred into the name of the taxpayer.
The land right transfer is made through the signing of statement letter between Nominee and the taxpayer before a notary declaring that the intended land and building is actually owned by the taxpayer.
This Permen ATR No. 15/2017 only applies to registration of land right transfer of taxpayer registered under the name of other people or Nominee in relation to the implementation of Tax Amensty Law.
Terms of Land Rights Transfer
The taxpayer must register the transfer of right to the local Land Office in accordance with the provisions of the laws and regulations.
For Nominee, the land right transfer is exempted from the imposition of income tax (“PPh“). The taxpayer however remains obligated to pay the acquisition levy over land and building (“BPHTB“) which is calculated based on the current tax object sale value (NJOP) of the land and building. The exemption from PPh only applies provided that:
- the taxpayer has obtained a tax amnesty certificate and has paid the ransom; and
- the transfer of land rights and the application for registration of land right transfer shall be executed no later than 31 December 2017.
Documents that need to be attached at the time of application for the land right transfer are as follows (may be in the form of derivative or certified copy according to its original by the authorized official):
- tax amnesty certificate;
- proof of ransom payment;
- proof of payment of BPHTB.
Daniel Pantouw
