Govt Lowers Income Tax on Sales of Luxury House, Motor Vehicles
The decision is stated in Regulation of Minister of Finance Number 92/PMK.03 of 2019 on the Second Amendment to Regulation of Minister of Finance Number 253/ PMK.03 of 2008 on Certain Entity Taxpayers as Collector of Income Tax from the Purchase of Goods Sales classified as Very Luxurious.
Under the regulation, goods classified as very luxurious which are subject to 1 % (one percent) of income tax include houses and their land with a selling price of the transfer price of more than Rp30,000,000,000.00 (thirty billion rupiah) over a building area of ??more than 400m2 (four hundred square meters); apartments, condominiums and the like with a selling price or its transfer of more than Rp30,000,000,000.00 (thirty billion rupiah) over a building area of ??more than 150m2 (one hundred fifty square meters).
Meanwhile, four-wheeled motorized vehicles transporting people less than 10 people with a selling price of more than Rp2, 000,000,000.00 (two billion rupiah) or with a cylinder capacity of more than 3,000cc; and two- and three-wheeled motorized vehicles with a selling price of more than Rp300,000,000.00 (three hundred million rupiah) or with a cylinder capacity of more than 250cc are subject to 5% (five percent) of tax.
Income tax as intended may be calculated as payment of income tax in the current year for taxpayers who purchase goods classified as very luxurious.
This Regulation of Minister of Finance shall take effect from the date of its promulgation, reads Article 2 of Regulation of Minister of Finance Number 92/PMK.03/2019 signed by Minister of Finance Sri Mulyani on 19 June 2019 and was promulgated by Director General of Laws and Regulations Widodo Ekatjahjana on 19 June 2019. (Ministry of Finance PR/ES)
Translated by: Muhardi
Edited by: M. Ersan Pamungkas