Govt Raises Luxury Tax Limit for Apartments, Condominiums
In a bid to boost the growth of property business, the Indonesian Government deemed it necessary to change the provisions on the limit of luxury residential values subject to luxury goods tax (PPnBM).
Minister of Finance Sri Mulyani Indrawati on 10 June 2019 has signed Regulation of Minister of Finance Number 86/PMK.010/2019 on Amendment to Regulation of Minister of Finance Number 35/PMK.010/2017 on Types of Goods deemed Luxury Items excluding Automotive Products that Subject to Luxury Goods Tax.
In Appendix I of the Regulation, there is a list of types of taxable goods classified as luxury items excluding automotive products that are subject to 20 percent tax.
Luxury residentials such as luxury homes, apartments, condominiums, town houses, and the like with a selling price of Rp30,000,000,000.00 (thirty billion rupiahs) or more, Appendix I of the Regulation reads.
Previously, the Minister of Finance Regulation Number 35/PMK.010/2017 listed types of taxable goods classified as luxury items excluding automotive products that are subject to 20 percent tax, namely:
- Houses and town houses of non-strata title with a selling price of Rp20,000,000,000.00 (twenty billion rupiahs) or more;
- Apartments, condominiums, town houses of strata title, and the like with a selling price of Rp10,000,000,000.00 (ten billion rupiahs) or more.
The Ministerial Regulation was enacted by Director General of Laws and Regulations of Ministry of Law and Human Rights Widodo Ekatjahjana, on 11 June 2019 and came into force on the date of its promulgation. (JDIH Kemenkeu/ES)
Translated by: Galuh Wicaksono
Edited by: Mia Medyana
