In Indonesia, the buyer of property is responsible for paying the Transfer Tax (Bea Pengalihan Hak atas Tanah dan Bangunan – BPHTB) when acquiring land or real estate. This BPHTB tax is often called the land acquisition tax and forms a crucial part of property taxes in Indonesia. The BPHTB tax is levied at a flat 5% rate, calculated based on the Tax Object Acquisition Value (Nilai Perolehan Objek Pajak – NPOP), deducting non-taxable real estate objects, known as Nilai Perolehan Objek Pajak Tidak Kena Pajak (NPOPTKP). The BPHTB tax is a one-time payment during property transactions in Indonesia. Completing the property sale relies on the Transfer Tax payment, as the notary will withhold signing the deed of transferring rights until the tax has been paid. You can calculate the BPHTB tax with the following formula:
BPHTB = 5% x (NPOP – NPOPTKP)
To simplify the process, an online BPHTB calculator is available. Known as the ‘kalkulator BPHTB,’ this tool makes it easier to calculate property taxes in Indonesia, especially in high-transaction areas like Jakarta and Bali.
You can read our comprehensive guide on Indonesian property taxes to learn more about the property tax system.
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