Tax incurred when buying Property in Indonesia

When you buy property in Indonesia the price that is explained by the agent is not the actual whole price of the property.

There could be additional costs too.For example taxes. Therefor all these possibilities must be considered and looked upon carefully.

PPN (Pajak Pertambahan Nilai)

Renown as the Value Added Tax or VAT which is 10 %. See your pricelist carefully whether it is included or excluded.

BPHTB(Bea Perolehan Hak atas Tanah dan Bangunan)

To make it simple it means the duty for aquiring land and building rights. It's 5% of the total transaction value that occurs. It's subject to the price of the property after deducted by PPN(see PPN above)

BBN(Bea Balik Nama)

It literally means the duty for Owners name change. Of course you want to have the property with your name as the official owner. There's a cost for it 2% of transaction cost. It will be the buyers obligation, not the seller's.

PPnBM (Pajak Penjualan Barang Mewah)

Is the the tax inccurred for the sales of luxury items. It will become a luxury item if it's value is above Rp 3 million/m2 or above 400m2. It happens only if a buyer buys straight from the developer. A person to person sales doesn't make this tax show up.

So that's all folks.


Sent from my BlackBerry® smartphone from Sinyal Bagus XL, Nyambung Teruuusss...!


house and lot for sale philippines on February 13, 2012 at 11:02 PM said...

I have a friend in Indonesia who's planning to buy a property and I will refer this post to her. Thank you for sharing.

Charles A

Anonymous said...

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Property Investment Adelaide on August 15, 2012 at 1:07 AM said...

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