Govt. Reregulates PPN Exemptions for Handovers of Basic Houses and Very Basic Houses

With the ultimate aim of supporting the government’s affordable housing program for low-income citizens, the Minister of Finance (“Minister”) has issued Regulation No. 81/PMK.010/2019 on Value-Added Tax Exemption Thresholds for Handovers of General Houses, Pondok Boro, Student Dormitories and Other Housing (“Regulation 81/2019”). In essence, Regulation 81/2019 has been introduced in the hope that low-income citizens will be more easily able to afford to purchase housing and updates the value-added tax (pajak pertambahan nilai – “PPN”) exemption thresholds which can be enjoyed by housing.[1]