Property taxes in Indonesia comprise several elements, one of which is the Land and Building Tax, also called Pajak Bumi dan Bangunan (PBB). This tax is remitted to the Directorate General of Taxes under the Ministry of Finance, Republic of Indonesia (Direktorat Jenderal Pajak, Kementerian Keuangan Republik Indonesia). Every land and property owner in Indonesia is obligated to pay this tax, which is determined by the property’s value. The entity or individual possessing the right to control and own the land fulfills this payment annually.
The PBB rate had been in the range of 0,01% to 0,3% but was revised in 2022 by the Indonesian government, increasing to 0,5%. The calculation of the PBB tax requires the NJOP and NJKP values:
- NJOP (Nilai Jual Objek Pajak) is the average value derived from real estate transactions. If there’s been no recent real estate transaction, the NJOP is set by the local government based on comparable properties.
- NJKP (Nilai Jual Kena Pajak) is the taxable sale value calculated from the NJOP.
Indonesia PBB tax calculator
How to calculate the Land and Building Tax (PBB) in Indonesia?
A property taxes calculator in Indonesia, such as a calculator Pajak Bumi dan Bangunan (calculator PBB), can be used to determine the NJKP using this formula:
NJKP = 40% or 20% x (NJOP – NJOPTKP)
The rate is 40% if the property value is at least IDR 1 billion ($67.165) and 20% if it’s less than IDR 1 billion ($67.165). NJOPTKP is a fixed IDR 12 million ($805).
After the NJKP is calculated, the PBB tax can be figured out using the land and building tax calculator with the formula:
PBB = 0.5% x NJKP
For instance, consider a property with an NJOP value of IDR 5.8 billion ($389.550).
- NJKP = 40% x (IDR 5.800.000.000 – IDR 12.000.000) = IDR 2.315.200.000 ($155.498)
- PBB = 0.5% x IDR 2.315.200.000 = IDR 11.576.000 ($778)
Based on this calculation, the annual PBB tax that the property owner must pay is IDR 11.576.000 ($778). Using the calculator Pajak Bumi dan Bangunan (calculator PBB) makes it easier to calculate property taxes in Indonesia.
