When making a purchase of land or villa in Indonesia, it is important to consider not only the standard value-added tax but also other property taxes. These taxes include:
- Pajak Bumi dan Bangunan (PBB): This is an annual land and building tax that is typically paid by the Lessee in
leasehold or yearly rental properties, rather than the landowner. - Bea Perolehan Hak Atas Tanah & Bangunan (BPHTB): This tax is applicable to freehold property transactions and is paid by the buyer. Currently, the tax value is 5% of the selling price.
- Pajak Penghasilan untuk Pengalihan Hak Atas Tanah & Bangunan: This is the income tax on land and building transfer in freehold property transactions, which is paid by the seller. Currently, the tax value is 2.5% of the sale price.
- Pajak Penghasilan untuk Sewa Tanah & Bangunan: This tax applies to leasehold property transactions and is paid by the seller. The tax value is 10% or 20% of the sale price, depending on whether the seller has a tax identification number (NPWP) or not.
- Nilai Jual Objek Pajak (NJOP): NJOP refers to the tax object sale value applicable to freehold properties. It determines the amount of transfer and acquisition tax that must be paid by the seller and the buyer, individually. The value varies by region and requires verification by the notary during due diligence.
Understanding these property taxes and ensuring compliance with tax regulations is essential for buyers in Indonesia. Here in Lasette, we are happy to help offer our expertise and clarify any uncertainties
regarding tax.
