Government Extends Granting of PPN Incentives for Handovers of Landed Houses and Multistory Housing Units in 2022

  • In an effort to boost the public’s purchasing power and support business actors within the property sector, the Minister of Finance recently issued Regulation No. 6/PMK.010/2022 ("Regulation 6/2022"), which contains provisions on the granting of government-borne value-added tax (pajak pertambahan nilai– "PPN") for handovers of landed houses and multistory housing units during the 2022 fiscal year.
  • In essence, the new PPN rates that will be borne by the government during the 2022 fiscal year break down as follows: 1) For houses with maximum sale prices of Rp. 2 billion: 50%; and 2) For houses with sale prices of between Rp. 2 billion and Rp. 5 billion: 25%.
  • The previous rates for this incentive during 2021 were set 50% higher, as follows: 1) For houses with maximum sale prices of Rp. 2 billion: 100%; and 2) For houses with sale prices of between Rp. 2 billion and Rp. 5 billion: 50%. (SETKAB)
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  • In an effort to boost the public’s purchasing power and support business actors within the property sector, the Minister of Finance recently issued Regulation No. 6/PMK.010/2022 ("Regulation 6/2022"), which contains provisions on the granting of government-borne value-added tax (pajak pertambahan nilai– "PPN") for handovers of landed houses and multistory housing units during the 2022 fiscal year.
  • In essence, the new PPN rates that will be borne by the government during the 2022 fiscal year break down as follows: 1) For houses with maximum sale prices of Rp. 2 billion: 50%; and 2) For houses with sale prices of between Rp. 2 billion and Rp. 5 billion: 25%.
  • The previous rates for this incentive during 2021 were set 50% higher, as follows: 1) For houses with maximum sale prices of Rp. 2 billion: 100%; and 2) For houses with sale prices of between Rp. 2 billion and Rp. 5 billion: 50%. (SETKAB)
......

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