The process of buying and selling a plot of land or building is an act that is charged with the obligation to pay taxes, while the taxes that are usually charged to the process are:
I. Fees for Acquisition of Rights to Lands and Buildings (BPHTB)
BPHTB is a levy on the acquisition of land and or building rights. The acquisition of land and or building rights is an act or legal event that results in obtaining rights to and or buildings by an individual or entity. Land rights are rights to land including management rights, as well as buildings on them as in Law Number 5 of 1960 concerning Basic Regulations on Agrarian Principles, Law Number 16 concerning Flats and other provisions of legislation. The basis for the imposition of duties on the acquisition of land and building rights from the acquisition value of the tax object at a rate of 5% of the acquisition value of the tax object. If you need need more informations, please feel free to contact us or simply book a meeting with our consultants.
II. Income Tax (PPH)
PPH is income tax on incoming received or obtained by an individual or entity from a transfer received or obtained by a party transferring rights to land and / or buildings through sales, exchanges, release of rights, submission of rights, auctions, grants, inheritance, or another way agreed between the parties. The amount of income tax from the transfer of land and / or building rights is 2.5% (two point five percent) of the gross amount of the transfer of land and / or building rights. If you need need more informations, please feel free to contact us or simply book a meeting with our consultants.
It is very important for you to know about the taxes that apply in Indonesia in the process of buying and selling land or buildings. Indo-Ned Consultancy always advise s and help s our clients to check the completeness of legal data on land or buildings before the buying and selling process to avoid unwanted surprises in the future. If you need more informations , please feel free to contact us or simply book a meeting with our consultants.