Selasa, November 28, 2023

Purchases of Landed Houses and Multistory Housing Units with Maximum Prices of Rp. 5 billion Eligible to Secure 100% PPN Incentive until 30 June 2024

In an effort to boost the general public’s purchasing power and support business actors operating within the property sector, the Minister of Finance ("Minister") has decided to provide various incentives that take the form of government-borne, value-added tax (Pajak Pertambahan Nilai– "PPN") for handovers of landed houses and multistory housing units (collectively referred to as "Assets") during the 2023 fiscal year through the issuance of Regulation No. 120 of 2023 ("Regulation 120/2023"), which has been in force since 21 November 2023.
Regulation 120/2023 states that the PPN rates that will be borne by the government will apply to handovers of Assets during the signing of sale-and-purchase deeds (Akta Jual Beli/AJB) or paid-off conditional sale and purchase agreements (Perjanjian Pengikatan Jual Beli/PPJB). Said handovers must be completed in the presence of a notary, while actual handovers of Assets should be proven through reports and carried out during the 1 November 2023 - 31 December 2024 period.
Moreover, Regulation 120/2023 affirms that the above-mentioned PPN incentives will be granted in relation to brand new, ready-to-occupy Assets with maximum sales prices of Rp. 5 billion and may cover up to Rp. 2 billion of payable PPN. Regulation 120/2023 sets the following applicable PPN incentive rates: 1) For handovers of Assets that take place between 1 November 2023 and 30 June 2024: 100%; or 2) For handovers of Assets that take place between 1 July 2024 and 31 December 2024: 50%.
It should also be noted that the above-described PPN incentives will apply to single individuals (i.e. Indonesian or foreign nationals that have secured taxpayer-identification numbers at the least) for the acquisition of single Assets.

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In an effort to boost the general public’s purchasing power and support business actors operating within the property sector, the Minister of Finance ("Minister") has decided to provide various incentives that take the form of government-borne, value-added tax (Pajak Pertambahan Nilai– "PPN") for handovers of landed houses and multistory housing units (collectively referred to as "Assets") during the 2023 fiscal year through the issuance of Regulation No. 120 of 2023 ("Regulation 120/2023"), which has been in force since 21 November 2023.
Regulation 120/2023 states that the PPN rates that will be borne by the government will apply to handovers of Assets during the signing of sale-and-purchase deeds (Akta Jual Beli/AJB) or paid-off conditional sale and purchase agreements (Perjanjian Pengikatan Jual Beli/PPJB). Said handovers must be completed in the presence of a notary, while actual handovers of Assets should be proven through reports and carried out during the 1 November 2023 - 31 December 2024 period.
Moreover, Regulation 120/2023 affirms that the above-mentioned PPN incentives will be granted in relation to brand new, ready-to-occupy Assets with maximum sales prices of Rp. 5 billion and may cover up to Rp. 2 billion of payable PPN. Regulation 120/2023 sets the following applicable PPN incentive rates: 1) For handovers of Assets that take place between 1 November 2023 and 30 June 2024: 100%; or 2) For handovers of Assets that take place between 1 July 2024 and 31 December 2024: 50%.
It should also be noted that the above-described PPN incentives will apply to single individuals (i.e. Indonesian or foreign nationals that have secured taxpayer-identification numbers at the least) for the acquisition of single Assets.

......