Exemption of 100% and Imposition of 0% on Acquisition Levy of Right of Land and Building

Acquisition Levy of Right of Land and Building (“BPHTB”) is a over legal act or event that results on an acquisition of right of land and/or building by person or legal entity.

On 13 October 2016, the Governor of Special Capital City of Jakarta issued a Governor of Special Capital City of Jakarta Regulation Number 193 of 2016 (“Governor Regulation No. 193/2016”), which stipulates exemption of BPHTB of 100% for the first sale and purchase or first obtainment of new rights and/or imposition of BPHTB of 0% as a result of inheritance or testamentary bequest with a Sale Value of Tax Object (“NJOP”) up to Rp2,000,000,000.00 (two billion Rupiah).

The exemption and/or imposition of BPHTB as mentioned above is granted by submitting an application to the Head of Tax Service Agency of DKI Jakarta Province or the appointed officers.

The application is submitted by attaching the following supporting documents:

  1. Exemption of Land

Exemption of BPHTB of 100% for individual taxpayer who obtains rights of land and/or building as a result of sale and purchase or first obtainment of new rights with the NJOP up to Rp2.000.000.000.

a. Formal requirements:

  • Statement letter which contains: (i) ID number (NIK); (i) taxpayer name; (iii) taxpayer address; (iv) tax object address; (v) description of application.
  • Copy of DKI Jakarta Identity Card;
  • Copy of Tax ID Number (NPWP);
  • Statement letter which states that the individual taxpayer has never owned land and/or building from a sale and purchase or obtainment of new rights and/or building, as legalized by Notary or Land Conveyancing Officer (“PPAT”) by using the format as set out in Governor Regulation No. 193/2016;
  • Power of attorney and identity card of the proxy, if using proxy;
  • Calculation of BPHTB payable as set out in the Tax Payment Slip BPHTB.

b. Material requirements (sale and purchase):

  • Authentic deed of land transfer from Notary or PPAT;
  • Copy of land certificate if the land acquisition is made from the certificated land;
  • Copy of Notification Letter of Land and Building Tax Payable for Rural and Urban Areas (“SPPT PBB-P2”) for the land that will be applied and evidence that the SPPT PBB-P2 has been paid or no arrears towards the SPPT PBB-P2.

c. Material requirements (obtainment of first rights) :

  • Decision letter on first obtainment of new rights of land from the officer of land city administration;
  • Other written evidences which contains information from government agencies related with the proof of the old land rights and/or building that came from old rights conversion.
  • Copy of SPPT PBB-P2 that will be applied for BPTHB exemption and evidence that the SPPT PBB-P2 has been paid slip or no arrears towards the SPPT PBB-P2.

2. Imposition of 0% BPHTB

Imposition of 0% BPHTB for individual taxpayer who obtains rights of land and/or building because of inheritance or grant testament for the sale value of tax object (NJOP) up to Rp2.000.000.000,00

a. Formal terms:

  • information letter which contains: (1) ID number (NIK); (2) Taxpayer name; (3) Taxpayer address; (4) Tax object address; (5) Description of application.
  • Copy of DKI Jakarta Identity Card;
  • Copy of Tax ID Number (NPWP);
  • Statement letter that contains individual taxpayer has never had land and/or building because of inheritance or grant testament in accordance with the format stipulated in Governor Regulation No. 193/2016;
  • Power of attorney for BPHTB exemption if authorized and endorsee identity card;
  • Payable BPHTB calculation which contains in Tax Payment Slip BPHTB.
  • Reference letter of inheritance or grant testament.

b. Material terms:

  • Authentic deed from Notary or PPAT) be in the form of acquisition of rights of land deriving from inheritance or grant testament;
  • Letter of granting of land rights or because of inheritance or grant testament from officer of administrative city ;
  • Copy of land certificate if the acquisition of rights of land was made on certificated land;
  • Copy of SPPT PBB-P2 that will be applied for BPTHB exemption and evidence that the SPPT PBB-P2 has been paid slip or no arrears towards the SPPT PBB-P2.

BPHTB exemption and/or imposition as mentioned above can be applied by individual taxpayer for:

  1. the overdue and unpaid BPHTB payment obligation until the fiscal year of the application;
  2. 1 object of land and/or building, once in a lifetime for each application and occupied by individual taxpayer; and
  3. individual taxpayer that is Indonesian national domiciled in DKI Jakarta at least 2 years in a row, since the issuance date of Identity Card (KTP) Province DKI Jakarta.

Budi Ananda Arbie

Did you like this? Share it:

Exemption of 100% and Imposition of 0% on Acquisition Levy of Right of Land and Building
0 votes, 0.00 avg. rating (0% score)

Comments are closed.