Homebuyers Score Big: Enjoy a VAT-Free Properties Before December 2024

In an effort to boost economic growth across Indonesia by stimulating public purchasing power within the housing sector, the government has decided to offer a range of tax incentives for value-added tax (“VAT”) on transfers of landed houses (rumah tapak) and units in apartment buildings (rumah susun) (collectively referred to as “Properties”) until December 2024.[1] In order to officially implement this new tax incentive, the Minister of Finance (“Minister”) has issued Regulation No. 61 of 2024 on Additional VAT Incentives for Transfers of Property  Borne by the Government (Pajak Pertambahan Nilai yang Ditanggung Pemerintah – “PPN DTP”) for the 2024 Fiscal Year (“Regulation 61/2024”), which came into effect on 19 September 2024.[2]