Exemptions of PBB-P2 Now Only Applies for One Tax Object and Exempted Administrative Sanctions Now Include Due Payment Interest

Following the mandate set under Regional Regulation of the Province of the Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta – “DKI Jakarta”) No. 1 of 2024 on Regional Taxes and Regional Retribution (“Regulation 1/2024”)[1] and in an effort to relieve the burden placed on taxpayers regarding Rural and Urban Land and Building Tax (Pajak Bumi dan Bangunan Pedesaan dan Perkotaan – “PBB-P2”), the Governor of DKI Jakarta (“Governor”) has decided to introduce various PBB-P2 leniencies, reductions and exemptions (collectively referred to as “Taxation Facilities”) for the 2024 period through the issuance of Regulation No. 16 of 2024 (“Regulation 16/2024”), which has been in force since 4 June 2024.[2]