- In a bid to spur national economic growth and boost the general public’s property purchasing power, the government has decided to extend the Value Added Tax (Pajak Pertambahan Nilai – "PPN") Borne by the Government (Ditanggung Pemerintah – "DTP") incentive for handovers of landed houses and condominium units until the end of 2024. This extension is stipulated under Regulation of the Minister of Finance No. 7 of 2024, which has been in force since 13 February 2024.
- The incentive covers PPN DTP on Taxable Transaction Values (Dasar Pengenaan Pajak – "DPP") of up to a maximum of Rp. 2 billion as a part of total sales prices that have been capped at Rp. 5 billion. In terms of the applicable timeframes, the PPN DTP will apply during two periods at different percentages, specifically: 1) 100% coverage for transactions that take place between 1 January 2024 and 30 June 2024; and 2) 50% coverage for transactions that take place between 1 July 2024 and 31 December 2024.
- It should be noted that the PPN DTP incentive is a one-time benefit that is available to both Indonesian and foreign citizens and applies exclusively to new landed houses and condominium units that are registered with relevant authorities. Moreover, said properties should not be transferred within one year of the relevant handover dates. Additionally, the incentive covers installment schemes and units that have been paid for in advance since 1 September 2023.
- For more on this story, see Hukumonline: “Pemerintah Resmi Perpanjang PPN DTP”.
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