Threshold for PBB-P2 Set at Between 20% and 100%: Is Your Property Ready for the New Tax Rates?

In 2018, the Minister of Finance (“Minister”) issued Regulation No. 208/PMK.07/2018 (“Regulation 208/2018”) on Guidelines for the Assessment of Rural and Urban Land-and-Building Tax (Pajak Bumi Dan Bangunan Perdesaan Dan Perkotaan – “PBB-P2”). At its core, Regulation 28/2018 outlines the scope of objects upon which PBB-P2 can be imposed and provides comprehensive guidance for regional governments regarding the establishment of Tax Object Sales Values (Nilai Jual Objek Pajak – “NJOP”) as the basis for the collection of PBB-P2.[1]