Overview of the basic types of taxes that may concern both companies and private persons taking part in ownership or business:

  • Tax for acquisition of land and buildings (Bea Perolehan Хак ATAS Tanah dan Bangunan - BPHTB)

BPHTB tax is paid by a buyer for acquiring rights for land and buildings. BPHTB rate equals to 5% of the cost of the acquired taxation object (Nilai Perolehan Objek Pajak).

  • Luxury tax

Luxury tax is imposed on property that matches the criteria of a luxury item. The property is considered to be premium real estate on condition that the size of it is over 150 square meters or the purchase price is over 4,000,000 IDR per square meter. The rate of luxury sale tax equals to 20% of the purchase price that is being paid at the time of transaction settlement.

  • Income tax (Pajak Penghasilan - PPH)

Income tax is imposed upon individual sellers. The rate equals to 5% of the total transaction cost. Transactions with the cost over 60,000,000 IDR are subject to added value tax.

  • Land and development tax (Pajak Bumi dan Bangunan – PBB)

Land and development tax is collected on a yearly basis and is imposed on all tax subjects. Tax declaration is issued by the government every March and is distributed to local authorities in the form of tax to be paid notification (SPPT).