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Costs associated with Buying & Selling Houses

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  • Costs associated with Buying & Selling Houses

    In 2015? I recall there was a Government drive to increase taxes & duties for transactions involving sale of 'Luxury' properties - There was a lot of talk at the time that this would slow the housing market right down and result in LESS tax revenues for the Government - does anyone know if such additional 'luxury taxes' on housing transactions were in fact fully implemented and if yes, how are they calculated and applied?

  • #2
    Originally posted by Perplex78 View Post
    ... does anyone know if such additional 'luxury taxes' on housing transactions were in fact fully implemented and if yes, how are they calculated and applied?

    I don't know and I think you will not find an anwer if you search in this Forum .

    I suggest you to search the internet and/or ask few real estate agents / PPAT notaries .


    https://www.akseleran.co.id/blog/pajak-jual-beli-rumah/ (Jun 2020 , How to Calculate Taxes for Buying a Home)
    Last edited by marcus; 02-10-20, 22:54.

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    • #3
      Thank you Marcus, I appreciate you taking the time to guide me in the right direction. I spoke with and agent from one of the larger real estate companies today and he said an additional luxury tax WAS implemented, originally affecting houses priced above IDR 5Billion - but due to the uproar it caused the threshold has been subsequently amended and is now around IDR30 Billion - so I guess I should count myself 'lucky' that our house is nowhere near that value. Unfortunately he didn't know what the actual luxury tax tariffs would be for houses over IDR30Billion and whether they were flat or tiered - but suggested most PPAT notaries would or should know.

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      • #4
        I should have your problems.

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        • #5
          Originally posted by Perplex78 View Post
          ... but due to the uproar it caused the threshold has been subsequently amended and is now around IDR30 Billion ...

          Yes , that informations seems correct . One of the tax related to buying/selling properties is the Value Added Tax (PPN) , which is usually 10% but 20% for luxury properties (above Rp30 billion).


          From https://www.hukumonline.com/klinik/d...lian-properti/ (jan 2020)
          Title : Dasar Hukum Pengenaan PPN atas Pembelian Properti
          By : Arasy Pradana A. Azis, S.H., M.H.

          [... Meanwhile, a higher tax rate (sales tax on luxury goods) is given to luxury residential groups such as luxury homes, apartments, condominiums, town houses, and the like with a selling price of IDR 30 billion or more.

          Attachment I to Regulation of the Minister of Finance Number 35 / PMK.010 / 2017 concerning Types of Taxable Goods Classified as Luxury Other Than Motorized Vehicles which are subject to Sales Tax on Luxury Goods as amended by Regulation of the Minister of Finance Number 86 / PMK.010 / 2019 of 2019 concerning Amendments to the Regulation of the Minister of Finance Number 35 / PMK.010 / 2017 concerning Types of Taxable Goods Classified as Luxury Other Than Motorized Vehicles Subject to Sales Tax on Luxury Goods classifies the property as luxury goods, and is subject to a sales tax rate on luxury goods of 20% ( page 1).

          Houses that do not meet the above criteria have a VAT rate of 10% in accordance with the provisions of Article 7 paragraph (1) of Law 42/2009 ...]

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