The buyer of property in Indonesia pays Transfer Tax (Bea Pengalihan Hak atas Tanah dan Bangunan – BPHTB) on 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 paid once throughout the property transaction 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)
A useful tool to calculate the BPHTB tax is the online BPHTB calculator. With the calculator BPHTB online, or kalkulator BPHTB, it’s easier to calculate property taxes in Indonesia. This tool is particularly useful for property purchases in Jakarta and Bali, where real estate transactions happen frequently. The kalkulator BPHTB simplifies calculating the BPHTB tax and is invaluable when buying property in Indonesia.
Read our full guide on Indonesian property taxes to learn everything about the property tax system.