Every property transaction—whether buying, selling, leasing, or developing—comes with legal tax
obligations and administrative costs. This guide provides a practical overview of how to calculate
income tax (PPh), acquisition tax (BPHTB), notary fees, and other expenses under Indonesia’s latest regulations.
💰 Seller’s Final Income Tax (PPh Final)
For property sales by individuals or legal entities, a Final Income Tax of 2.5% applies to the transaction value.
- Legal basis: Government Regulation No. 34 of 2016 and PMK 261/PMK.03/2016.
- Must be paid by the seller before the sale deed (AJB) is signed.
- Proof of payment (e-Billing) is required to be attached to the AJB.
🏠 BPHTB (Property Acquisition Duty)
Paid by the buyer at a rate of 5% × (Transaction Value – Tax-Free Threshold).
- Standard rate: 5% across Indonesia.
- Tax-free threshold (NJOPTKP) varies by region (e.g., Denpasar IDR 60–80 million).
- Usually paid at a local government bank prior to signing the AJB.
🧾 VAT (PPN) & Luxury Tax (PPnBM)
VAT applies to sales conducted by developers or taxable business entities (PKP).
- VAT rate: 11% of the selling price (can be 0% for subsidized housing).
- Luxury Tax (PPnBM) applies to high-value properties, typically above IDR 5 billion.
📜 Notary / PPAT Fees
Fees for preparing sale-purchase deeds (AJB), preliminary sale agreements (PPJB), and title transfers.
- Average: 0.5% – 1% of the transaction value (negotiable).
- Includes certificate verification, deed drafting, and BPN registration.
🏗️ Validation & PBG Fees
Applies when the buyer conducts new construction or major renovation.
- Land certificate validation is done at the local BPN office.
- PBG fees depend on building area and zoning (typically IDR 50,000–100,000/m²).
🔁 Leasehold / Rental Tax
For long-term lease (hak sewa) or commercial rental agreements:
- 10% Income Tax (PPh) on rent for corporate lessors.
- 11% VAT applies if the lessor is a registered taxable company (PKP).
📑 Example Cost Simulation
Villa sale transaction valued at IDR 5,000,000,000 in Denpasar:
- PPh Final (2.5%) = IDR 125,000,000
- BPHTB (5%) = IDR 250,000,000 – (after NJOPTKP deduction of ~IDR 80,000,000 × 5%)
- Notary & PPAT ≈ IDR 25,000,000
- Total estimated taxes & fees ≈ IDR 400,000,000 (≈8%)
