Updated Framework on PBB Deductions Introduced: Scope of Taxable Objects Eligible for Deductions Further Clarified

In 2017, the Minister of Finance (“Minister”) issued Regulation No. 82/PMK.03/2017 (“Regulation 82/2017”) on the Granting of Land-and-Property Tax (Pajak Bumi dan Bangunan – “PBB”) Deductions (“Deductions”) which, as its title suggests, addressed various aspects of and prerequisites for Deductions.[1] However, in an effort to provide further legal certainty regarding Deduction services and taxable Deduction objects (“Objects”), the Minister has now decided to adjust various aspects of Deductions through the issuance of Regulation No. 129 of 2023, which bears the same title as Regulation 82/2017 (“Regulation 129/2023”) and which is set to come into force on 30 December 2023.[2]

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