Indonesian Taxation

Session 1: Overview
 Siti Nuryanah, PhD
PhD (Victoria University, Australia)
MBus(Acc) (Victoria University, Australia)
MSM (Universitas Indonesia)
SE, CA (Universitas Indonesia)
https://bit.ly/SitiNuryanahTube
 Agenda
a. Tax System
b. Rule and Function of Tax in Government Budget
c. Tax Concepts (Including Tax Levy)
d. Problems in Tax Levy
e. Link between Tax and Accounting
f. Local Taxes and Retributions, Land and Building Tax of Rural
and Urban Areas (PBB-P2), Acquisition Duty of Right on Land
and Building (BPHTB), Tax on Title Transfer of Land and
Building (PPhTB) and Stamp Duty
g. Illustration of Local Tax Collection (PBB P-2)
Type any tax that you know!
Go to https://www.menti.com/ala9gjb28fpn
Why do we need to learn about Tax?

Individual
Obligation

Economic
Company’s
Growth Tax
Obligation
(Macro-
(Fin. Acttg)
economics)

State
Revenue
(Public-
Sector
Acctg)
6
Career in Tax-related Field

Tax
management

Tax officer
Others Career
(DJP)

Tax
Consultant

7
Taxes in a Company

Transaction

Withholding

Managerial Taxes in a Company’s Corporate

Decision Company Obligations Income Tax

Others

Financial
Statement

8
 Company Taxes
Withheld by Other
Parties (Inc. Tax
art 22,23,24), VAT
Corporation
Withhold
Income Tax
art 21

- Land & Building Tax Withhold VAT

Income Tax Calculation: - Stamp Duty on Taxable
Earn Revenue - Land /Building Right Good/Service
Acquisition Charge Transaction
-/- Deductable Expenses - Local Taxes
= Taxable Income
X Tax Rate File
Tax
Tax Payable Return
Tax Credit
• Installment (Art 25)
• Withheld by others (22,23)
• Tax paid abroad (art 24) Pay Taxes (Installment –
DGT
Underpaid/Overpaid Tax (29/28 art 25, Other Tax Payable) 9
 TAX
aw IN FINANCIAL STATEMENTS 46
ax L
T KA
PS

10
 TRANSACTIONS AND COMPANY MANAGEMENT
DECISIONS RELATED TO TAXES
Transactions Related to Tax
• Sales of goods or rendering of services
subject to VAT
• Purchase of goods or payment for services
subject to VAT
• Payment of salaries
• Rental payments and use of assets
• Payment of services to other parties
• Payment of income on loans such as interest
Management’d Decisions affected by Tax
• Company acquisition
• Business combination
• Company termination
• Establishment of a subsidiary,
• Establishment of operational
cooperation with other parties
11
Tax System
Definition of Tax (1)

Prof. Dr. Rochmat Soemitro, S.H

people's contribution to the state treasury by law

(enforceable) without direct reciprocal
services(compensation), which can be levied
directly and used to pay for public expenses
(The basics of tax law and
income tax 1990: 5)

13
Definition of Tax (2)
Prof.Dr.P.J.A.Adriani
Contribution to the state (enforceable) owed by those who are obliged
to pay it according to regulations with no direct return to the payer and is
used to finance general expenditures related to the state's duty to organize
the government

Mr. DR. N. J. Feldmann

Taxes are achievements that are carried out by and are owed to the
Entrepreneur (according to the norms stipulated in general), without any
counter-achievements, and are solely used to cover general expenses

Prof. Edwin R. A. Seligman

“Tax is compulsory contribution from the person to the
government to defray the expenses incurred in the common
interest of all, without reference to special benefit conferred.”
14
Tax Definition

• Contribution prescribed by Law

• Without direct compensation
• Imposed by the Government (Central or Local
Government
• Used for public expenditure
• May have other purpose (regulatory purpose)

15
The Difference between Tax and Retribution

RETRIBUTION
got reciprocal services as direct compensation
(also called service charges)

Retribution Characteristics:
1. Collection should be based on law
2. The nature of the collection is enforceable
3. Levied by government
4. Used for public expenditure
5. The payer got direct compensation

16
 The Difference between Tax and Donation

 Donation
The only party got the benefit is the beneficiary

-- Donations
Donations areare not
not used
used for
for the
the public
public expenditures
expenditures which
which are are
managed
managed by by the
the government,
government, but but are
are carried
carried out
out byby and
and for
for the
the
benefit
benefit of
of aa certain
certain group
group ofof people
people and
and do
do not
not require
require aa legal
legal
basis
basis for
for levies
levies –– there
there is
is no
no requirement
requirement toto set
set aa law
law or
or
implementation
implementation regulation
regulation for
for donation
donation
-- The
The contribution
contribution are
are not
not based
based on
on law
law but
but are
are more
more ofof aa
mutual
mutual assistance
assistance in in nature
nature

17
TAX PAYMENT SYSTEMS (STELSEL)

 Stelsel
 Fictive  ITA 25 (Tax Installment)
 Real  ITA 21, 22, 23, 24
 Mixed  ITA 29

ITA 25 Installment Payment (fictitious) Count back

Withholding tax by other parties (ITA 21, 22, 23, 24) - real ITA 29 - mixed

18
 TAX COLLECTION SYSTEM
 Official assessment  SKP (TAX ASSESSMENT LETTER), PBB
 Self assessment  Annual Tax Filing
 Withholding system  ITA 21, 23, 22, VAT, ITA 4 (2)

Self Assessment
Application
REGISTRATION PAYMENT FILING
• Registrasi Online: https://www.youtube.com/watch?v=NyAoNVVAnTo
• Pembayaran pajak elektronik https://www.pajak.go.id/id/pembayaran-pajak-menggunakan-e-billing
• Pelaporan SPT elektronik (e-form atau e-filing), contoh:
https://www.youtube.com/watch?v=I08EWFfkrMk
https://www.youtube.com/watch?v=jLSARSW3vzk&t=121s
19
TAX COLLECTION JURISDICTION

 Tax Collection Principles

 Domicile / residence: tax collection is based on
domicile and residence. The provisions on tax subjects
in the Income Tax Law are based on place of residence.
 Source: tax collection is based on the source of income,
if a person or company earns income from Indonesia, it
will be taxed in Indonesia even though the person or
company is abroad. Income Tax Article 26
 Nationality: a tax is levied on nationality. Taxes on
diplomatic staff

20
Rule and Function of Tax
in Gov’t Budget
 Tax Functions
• Budgetary  main source of State revenue
• Regulatory  Luxury Goods Sales Taxes on
Liquors, Higher cigarette tax, lower income tax for
SME

Regulatory – The function of taxes to regulate the economy

• Corporate Income Tax in the Ciptaker Law is to ease the burden
on the company so that the company can be going concern.
 Income redistribution • PPnBM (Sales Taxes) on luxury goods, liquor, ITA 22 on very
 Democracy luxury goods limits people's consumption patterns for these
goods.
• Final Income Tax 0.5% for MSMEs with a turnover of up to 4.8
billion, to encourage MSME development
22
 APBN 2023

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F i r
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Ref: https://media.kemenkeu.go.id/getmedia/6439fa59-b28e-412d-adf5-e02fdd9e7f68/Informasi-APBN-TA-2023.pdf?ext=.pdf
Ref: https://media.kemenkeu.go.id/getmedia/6439fa59-b28e-412d-adf5-e02fdd9e7f68/Informasi-APBN-TA-2023.pdf?ext=.pdf
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Ref: https://media.kemenkeu.go.id/getmedia/6439fa59-b28e-412d-adf5-e02fdd9e7f68/Informasi-APBN-TA-2023.pdf?ext=.pdf
 Where do your taxes go?

https://www.kemenkeu.go.id/alokasipajakmu
 Tax
Concepts
Principles of Taxation

• EQUALITY  Tax is fair and equitable  CONVENIENCE  Tax is not

– Fair Vertically complicated, pay as you earn,
– Fair Horizontally
i.e. withholding system

 CERTAINTY  not arbitrary, based on  ECONOMY  efficient i.e.:

the law being implemented self-assessment

Adam Smith in An inquiry

into the nature and cause
of the wealth of nations
This principles are also known as
4 Maxims of Adam Smith
36
Tax Collection Principles

Principle according to Legal Juridical Principle

Philosophy
Tax laws must provide legal guarantees 
• Insurance Theory
Law
• Interest Theory
• Ability to Pay Theory
• Service Theory
• Purchasing Power Principal Theory

Economic Principle Collection Principle

Country  Taxes should not hinder the  Residential Principle
economy  Facilitate economic  Nationality Principle
improvement  Source Principle

37
 INSURANCE THEORY

Is it true?
• Paying taxes is similar to
paying insurance premium
• The state is responsible to
protect its citizen’s life
(taxpayers) who have paid
tax as a guarantee to get the
protection

38
INTEREST THEORY

• As the state should protects the

citizens’ interests (assets and
lives), the tax paid by the
taxpayers should be charged
based on their interest (that should
be protected by the government)

39
ABILITY-TO-PAY (BEARING) THEORY

• Each person should be taxed with the

same weight (fair) according to their
ability-to-pay (bearing) capacity:
– Objective aspect (amount of income)
– Subjective aspect (amount of expenditure)

40
 PURCHASING POWER PRINCIPLES THEORY

• Taxes are used to maintain public interest

not individual/ state interest.
• Tax collection is taking the purchasing
power of the public household for the
state household, then channeling it back
to the community with the intention of
preserving people's lives and to bring it in
a certain direction (eg welfare).
• Taxes are used more for regulatory
purposes.

41
 SERVICE THEORY

• Taxes are considered as a form of people's service to

the state
• The theory of tax as a liability is absolute.
• In the royal era, taxes = “ulubekti” as a form of people's
loyalty to the king. King = representative of God.
• In the colonial era, taxes = contributions to the
colonizers, so that taxes = colonizers caused a
“belasting trauma” which considered taxes to be
identical to the colonizers, so independent
independence did not pay taxes. The problem is asking
people to pay taxes at the beginning of tax reform.

42
TAX LAW

Set of rules that govern the relationship

between the government as tax collectors
and citizens as taxpayers

43
Tax Law Positions

• Criminal Law
Imposing sanctions for negligence and deliberate
action against taxpayers who violate regulations.

• Civil Law
Seeking the basis for possible tax collection based
on events, circumstances and legal actions in a civil
environment

44
TYPES OF TAX LAW
MATERIAL TAX LAW FORMAL TAX LAW

Regulates the tax object, the tax subject, the amount of tax incurred Procedures for bringing material law into reality
and the tax debt cancellation and the legal relationship between the
government and taxpayers
• General Rules and Tax Procedure Law (UU Ketentuan Umum dan
Tata Cara Perpajakan)
• Income Tax Law (UU Pajak Penghasilan) • Tax Collection using Distress Warrant Law (UU Penagihan Pajak
• VAT (Value Added Tax) Law and STLG (Sales Tax on dengan Surat Paksa)
Luxury Good) Law (UU Pajak Pertambahan Nilai dan • Tax Court Law (UU Pengadilan Pajak)
Pajak Penjualan Barang Mewah (PPnBM))
• Stamp Duty Law (UU Bea Meterai) NEW TAX LAW
• Regional Tax and Retribution Law (UU Pajak dan Retribusi  UU CIPTAKERJA
Daerah)  UU 7/2021 HPP Harmonisasi Peraturan
• Land and Building Tax Law (UU Pajak Bumi dan Bangunan) Perpajakan

UU PP PMK PerDirjen SE Dirjen DINAMYC

45
UU HPP – Tax Harmonization Law
UU 7/2021
UU HPP consists of 9 Chapters which have six
setting scopes.
 General Provisions and Tax Procedures (Ketentuan
Umum dan Tata Cara Perpajakan - KUP)
 Income Tax (PPh)
 Value Added Tax (VAT)
 Voluntary Disclosure Program (Program
CREDITS: This presentation template was created by Slidesgo,
Pengungkapan Sukarela - PPS)
including icons by Flaticon, infographics & images by Freepik and
 Carbon Tax illustrations by Stories

 Excise duty
46
UU CIPTAKER – OMNIBUS LAW
UU No 2/2020 Perppu 1/2020  Policy related to Pandemic
Covid-19

 Adjustment of income tax rates for domestic corporate taxpayers and

permanent establishments; (22% from 2020-2021, 20% by 2022, 3%
incentive to listed 40%)
 Tax treatment in Trading through Electronic Systems (PMSE);
 extension of time for the exercise of rights and fulfillment of tax
obligations; and
 Granting authority to the Minister of Finance to provide customs
facilities inCREDITS:
the formThisof presentation
exemptiontemplate was created by Slidesgo,
or relief from import duties in the
including icons by Flaticon, infographics & images by Freepik and
context of handling emergency conditions
illustrations by Storiesas well as restoring and
strengthening the national economy.
 Extension of time for submission by Taxpayers and Settlement by DGT
47
 General Provisions and Tax Procedures
Amended several times, lastly by Law 16 of 2009
Bab I Ketentuan Umum
Bab II Nomor Pokok Wajib Pajak, Pengukuhan Pengusaha Kena Pajak, Surat Pemberitahuan, Dan
Tata Cara Pembayaran Pajak
Bab III Penetapan Dan Ketetapan Pajak

Bab IV Penagihan Pajak

Bab V Keberatan Dan Banding

Bab VI Pembukuan Dan Pemeriksaan

Bab VII Ketentuan Khusus

Bab VIII Ketentuan Pidana

Bab IX Penyidikan

Bab X Ketentuan Peralihan

Bab XI Ketentuan Penutup

Taxation 2 48
TAX PROCEDURES – UU KUP
FISCUS
TAXPAYER c
Tax Audit

OFFICIAL ASSESMENT
ASSESMENT
SELF

Registration
Pendaftaran
(NPWP-NPPKP)
c Stipulation
(SKP)
Bookeeping/
Pembukuan/
Pencatatan
Recording
Objection

Pembayaran
(SSP)Payment
(SSP)
TAX
Appeal COURT

Pelaporan
Reporting
(SPT) SUPREME
Judicial
COURT
Review
49
General Provisions and Tax Procedures

Taxation 2 50
 INCOME TAX(UU 36/2008)
Fourth amendment of UU 7/1983

General Procedures
Tax Subject
Tax Object
• Object; not object; subtracting and not subtracting

Tax Calculation
• Tariffs, capital structure, transaction prices, revaluations

Tax Payment
• ITA 21; 22; 23; 24; 25; 26

Tax Calculation at the end of the year

• ITA 28; PPh 29

Others; Transitions and Closing

51
VAT & STLG (PPnBM) LAW (UU 42/2009)
Fourth Amendment of UU 8/1983

Establishment of Taxable Entrepreneurs

Obligation to report business, collect and deposit and

report tax payable

Tax Object

Tax Rates and Tax Calculation

Period and Place of Tax Payable

Tax Calculation Report

Special Provisions - Collector

52
 TAX RATES
PERCENTAGE
• Marginal Rate: the tax rate on any
additional income earned.
• Effective Rate: the overall rate
applicable to earned income.
Example:
• Intan in December 2022 earned an
income of 100 million and an income
from Jan-Nov of 554 million.
• The marginal rate on December earnings
is 35%.
• The effective rate of income (654m)
during 2022 is
• 54 million not taxable, 60 million x 5% +
190 million x 15% + 250 million x 25% +
100 million x 30% = 124 million
• Effective rate = 124 / 654 = 18.96%
STRUCTURED
• Proportional Tariff: each tax object is subject to the
same percentage rate, for example 10% VAT rate, for
submission of BKP 100 million VAT of 100 million x 10%
= 10 million
• Fixed Rates: each tax object is subject to the same
rate. For example, the material fee for each document
is subject to a tariff of 10,000 regardless of the
contents of the document.
• Progressive Tariff: each object with a larger tax rate is
subject to a higher rate, for example the income tax
rate. Progressive can be progressively progressive, the
increase is higher and progressively progressive, the
increase is getting smaller.
• Degressive Rate: each object with a larger tax rate is
subject to a lower tax rate
53
 Starts and Ends of Tax Debt

When a tax debt arises Expiration of tax debt

• Material: when the law comes • Payment
into effect • Compensation
• Formal: when billed / determined • Expired
by the tax authorities • Liberation / deletion

54
 TYPES OF TAX
PAJAK DAERAH (Based on UU PRD) –
Central Tax (Based on Undang Undang)
implemented in Peraturan Daerah
• Income tax • PROVINCE TAX
• Value Added Tax (VAT) and Sales Tax on • PKB, BBNKB, Fuel Tax, Motor Vehicles,
Luxury Goods (SLTG) Surface Water, Cigarettes
• Stamp Duty • KABUPATEN KOTA TAX
• property tax • Taxes on hotels, restaurants,
• Tax on Land and Building Rights entertainment, billboards, street
Acquisition lighting, non-metallic minerals and
rocks, parking, groundwater, swallow's
nests, rural and urban land and
building tax, tax on land and building
rights acquisition

55
 Type of Taxes

Taxes

Type Nature Collector

Subjective Objective
Taxes Taxes

Direct Indirect Central Local

Taxes Taxes Govt Govt

56
 Problems
in Tax Levy
Ref: OECD (2022)
Ref: OECD (2022)
 Tax Revenue and Tax Reform

Ref: APBN 2023

Tax Disputes

DGT

Ref: https://setpp.kemenkeu.go.id/statistik
 Taxpayers:
61.17%

Ref: https://setpp.kemenkeu.go.id/statistik
Tax dispute  DGT more often loses in the appeal process.
 Tax Resistance

PASSIVE
• Economic Structure
• Legal structure
• Voting System
• Moral and intellectual population TAX MANAGEMENT
ACTIVE
Administrative and Tax  Tax Avoidance
Crimes Sanctions
 Tax Evasion
 Tax Manipulation

66
Tax Reform in Indonesia from time to time
https://www.youtube.com/watch?v=HNlK0wTQ7m4

Core Tax Administration System

https://www.youtube.com/watch?v=cdrvXs4MR2c
Digitalization and Core Tax System
Link between
Tax and
Accounting
 Bookkeeping
Article 28 Paragraph (1), (7) and Elucidation (7)

70
 Accounting Standards in Indonesia
Statement of Financial Accounting Standards– PSAK  based on IFRS

Financial Accounting Standards - Private Entity– SAK EP

Accounting Standards – MSM Entities- SAK EMKM

Syariah Accounting Standard Presentation of Financial Statements - the Entity's Non-

• Regulating Sharia transactions
• Reporting Sharia organization
• Applied in conjunction with PSAK /
SAK ETAP / EMKM depends on the
entity
profit Oriented - ISAK 35 (PPSAK 13 – PSAK 45 Revoked)
• Reports’ name may be different
• Accounts in financial statements may differ
• Taking into account the provisions of PSAK 1 Presentation
of Financial Statements

Government
Government Accounting
Accounting Standards
Standards (Standar
(Standar Akuntansi
Akuntansi Pemerintahan-SAP),
Pemerintahan-SAP), PP PP 71
71 of
of 2010,
2010, isis used
used for
for
Central
Central and
and Regional
Regional Government
Government entities
entities in
in preparing
preparing financial
financial reports.
reports. Accrual-based
Accrual-based standards,
standards, withwith
primary
primary reference
reference of
of IPSAS
IPSAS // International
International Public
Public Sector
Sector Accounting
Accounting Standards.
Standards.

71
 Accounting vs Tax

IFRS/ PSAK Tax Law

Fiscal
Accounting Reconciliation
Taxable Income
Income

DIfference

Permanent Temporary

Deferred Tax:
Fiscal  Asset / Liability
Reconciliation  Expense / Revenue

72
Quiz Game

1. Go to:
https://kahoot.it?pin=281953&refer_method=link

2. Type your name: Firstname

Local Taxes
and
Retributions
 • Vehicle tax
• Transfer of Motor Vehicle Title Fee
Provincial Tax • Motor Vehicle Fuel Tax
• Surface Water Tax
• Cigarette Tax Provincial
and
Regency /
• Hotel Tax City
• Restaurant tax
• Entertainment Tax Taxes
• Advertisement tax
• Street Lighting Tax
Regency / City Tax • Non-Metal Mineral and Rock Tax
• Parking Tax
• Groundwater Tax
• Swallow's Nest Tax
• Rural and Urban Land and Building Tax
• Fees for Acquisition of Rights to Land and Buildings
Legal Basis -Regulation
UU No. 28/2009
(REGIONAL TAXES AND REGIONAL RETRIBUTION
LAW)
UU No.12/1985
UU NO.12/1994
Land and Building Tax

Central Regional government

government
Plantation
Rural areas

Forestry
Urban areas

Mining
Rural and Urban Land and Building Tax (PBB P2)

Rural and Urban Land and Building Tax (PBB P2) is a tax on land
and / or buildings owned, controlled, and / or utilized by
individuals or entities, except for areas used for plantation,
forestry and mining business activities.

Land – Earth in PBB P2 is the surface of the earth covering land

and inland waters as well as the sea in the regency / city territory
Buildings are technical constructions that are permanently
planted or affixed to land and / or inland waters and / or sea
Rural and Urban Land and Building Tax (PBB P2)

Included in the definition of buildings are:

• a road located in a building complex such as a hotel, factory
and emplacement, which is an integral part of the building
complex
• motorway, swimming pool, fancy fence, sport venue
• shipyards, docks
• luxury garden
• storage / refinery for oil, water and gas, oil pipelines; and
• tower
 Tax Objects Not Subject to Tax PBB
P2 4
1 Objects that are protected forest, nature
reserve forest, tourism forest, national
Objects used by the Government
park, grazing land controlled by the
and Regions for government
village, and state land that has not been
administration.
encumbered with a right.
2
5
Objects that are used solely to serve the public Objects used by diplomatic
representatives and consulates
interest in the fields of worship, social, health,
based on the principle of
education and national culture, which are not
reciprocal treatment; and
intended to gain profit.
6
3 Objects used by agencies or
representatives of
Objects used for graves, ancient
international institutions as
relics, or the like. stipulated by Ministry of
Finance Regulations
Subjects and Taxpayers of PBB P2

Subjects and Taxpayers for Rural and Urban Land and Building
Tax are Individuals or Entities that actually have rights over the
land and / or benefit from the land, and / or own, control, and /
or obtain benefits over the building.
 Tax & Tariff Imposition Basis

The basis for the imposition of Rural and

Urban Land and Building Tax is Sales
Value of Tax Objects) (Nilai Jual Objek
Pajak -NJOP). The NJOP is
determined by the
The amount of NJOP is determined Regional Head
every 3 years, except for certain tax
objects that can be determined
annually in accordance with the
development of the area.
NJOPTKP is stipulated
by Regional Regulation
The amount of the Sale Value of Non-
Taxable Tax Objects (NJOPTKP) is set
at a minimum of IDR 10,000,000 for
each Taxpayer.
The Tariff is set at the highest at 0.3%, stipulated by a Regional
Regulation(UU no.28/2009)
 Stipulation of NJOP
Sales Value of Tax Objects or NJOP is the average price obtained from land sale and purchase
transactions that occur fairly. NJOP determination can be done by:

Comparison of prices with other
similar objects, is an approach /
method of determining the selling
value of a tax object by
comparing it with other similar
tax objects which are located
nearby and have the same
function and the selling price is
known.
New acquisition value, is an
approach / method of
determining the selling value of
a tax object by calculating all
costs incurred to acquire the
object at the time of the
appraisal, which is reduced by
depreciation based on the
physical condition of the object.
Replacement selling value
is an approach / method of
determining the selling
value of a tax object based
on the production results
of the tax object
The following is an example of
the lowest to highest NJOP
details in the DKI Jakarta area
based on the Governor
Regulation of DKI Jakarta
Province Number 24 of 2018.
Example PBB P2
Taxpayer A has tax objects in the form of:
• Land area of 800 m2 with a selling price of IDR 300,000 / m2
• A house with an area of 400 m2 with a sale value of IDR 350,000 / m2
• Park area of 200 m2 with a sale value of IDR 50,000 / m2
• The fence is 120 m long and the average height is 1.5 m with a selling
price of IDR 175,000 / m2
How much PBB is owed if the tax rate stipulated in the Regional Regulation
is 0.2%?
NJOPTKP = IDR 12,000,000
Answer:

NJOP Earth: 800 x 300,000 = 240,000,000

NJOP Building:
a. House: 400 x 350,000 = 140,000,000
b. Park: 200 x 50,000 = 10,000,000
c. Fence: (120 x 1.5) x 175,000 = 31,500,000
Total NJOP of building = 181,500,000
Sales Value of Tax Objects as Tax Basis = 421,500,000
Sales Value of Non-Taxable Tax Objects = (12,000,000)
NJOP for PBB calculation = 409,500,000
The effective tax rate stipulated in Regional Regulation is 0.2%
PBB owed: 0.2% x 409,500,000 = 819,000
 Time and Place of Tax Due

The time to determine the

tax payable is according to
the state of the tax object on
January 1.
Tax Year is a period of Place of tax payable is in
1 (one) calendar year. the regional area which
includes the location of the
tax object.
 Tax Payment PBB P2
• Data collection is carried out using Tax Object Tax Return (SPOP: Surat Pemberitahuan Objek
Pajak), which is a letter used by taxpayers to report data on subjects and objects of PBB P2 in
accordance with the provisions of regional taxation laws and regulations.
• The SPOP must be filled in clearly, correctly, and completely and signed and submitted to the
Regional Head whose working area includes the location of the tax object, no later than 30
working days after the date of receipt of the SPOP by the Tax Subject.
• Based on the SPOP, the Regional Head issues an SPPT (Tax Return Payable), which is a
letter used to notify the amount of PBB P2 owed to the taxpayer.
• Regional Heads can issue SKPD (Regional Tax Determination Letter) in the following cases:
– SPOP is not submitted and after the Taxpayer has been reprimanded in writing by the
Regional Head as specified in the Warning Letter
– Based on the results of the examination or other information, it turns out that the amount of
tax owed is greater than the amount of tax calculated based on the SPOP submitted by the
Taxpayer.
Exercise 1

Mr. A has 2 PBB-P2 objects which are located separately in

Sukasari Village, Cianjur, with the following details:
Houses, according to the functional appraiser:
Land area = 1,000 m2, NJOP = 1,000,000 / m2
Building area = 500 m2, NJOP = 800,000 / m2
Vacant land, according to the appraiser:
Land area = 2,000 m2, NJOP = 900,000 / m2

Calculate the PBB of each object, if the NJOPTKP is

IDR12,000,000 and the PBB rate is 0.1%!
Answer
House:
NJOP of the Land = 1,000,000,000
NJOP of Building = 400,000,000
NJOP as DPP = 1,400,000,000
Sales Value of Non-Taxable Tax Objects = -
NJOP for PBB Calculation = 1,400,000,000
PBB outstanding (0.1%) = 1,400,000

Vacant land:
NJOP of the Land = 1,800,000,000
NJOP as DPP = 1,800,000,000
Sales Value of Non-Taxable Tax Objects = (12,000,000)
NJOP for PBB Calculation = 1,788,000,000
PBB outstanding (0.1%) = 1,788,000
Fees for Acquisition of
Rights to Land and
Buildings:
Bea Perolehan Hak
atas Tanah dan
Bangunan (BPHTB)
UU No. 28/2009
 TAX SUBJECT TAXPAYERS

• Individuals or entities that obtain • Individuals or Entities that obtain

rights to land and / or buildings rights to land and / or buildings

TAX BASIS
TARIFF
• The basis for the imposition is the Tax Object
Acquisition Value (Nilai Perolehan Objek
Pajak - NPOP). BPHTB rates are set at a
• The tax owed must be paid in full at the time maximum of 5%, stipulated by a
the BPHTB rights are acquired that are Regional Regulation
collected in the regional area where the Land
and / or Buildings are located.
Tax Object

Acquisition of Rights to Land and / or Buildings, which includes:

transfer of rights due to:
• sale and purchase, exchange, grant, will grant, inheritance
• income in a company or other legal entity
• separation of rights resulting in transfer
• the designation of the buyer in the auction
• implementing the decision of a judge who has permanent legal force
• business combination
• business amalgamation
• business expansion; or
• Gift Land rights are: ownership rights,
use rights, building use rights,
usage rights, apartment units
granting new rights because:
• continuing waiver of rights; or ownership rights, and management
• beyond waiver rights.
 Not Subject to BPHTB

Obtained tax object due to:

• Diplomatic and consular representation based on the principle of reciprocity
• The state for the administration of government and / or for the
implementation of development in the public interest
• Bodies or representatives of international institutions stipulated by PMK on
condition that they do not run a business or carry out other activities outside
the functions and duties of the agency or representative of the organization
• Individuals or Entities due to conversion of rights or due to other legal
actions without a change in name
• Individual or Entity due to waqf; and
• Individuals or bodies used for religious purposes
 Acquisition Value of Tax Objects
• Buying and selling is the transaction price
• Exchanges are market values
• market value
Grants are market value
• Testament grants are market value
• Inheritance is market value
• Income in a company or other legal entity
is market value
• The separation of rights that results in the
transfer is the market value
• The transfer of rights due to the
implementation of a judge's decision
which has permanent legal force is a
market value.
• The granting of new land rights as a
continuation of the release of rights is a
• The issuance of new rights to land other
than relinquishment of rights is market
value
• A business combination is market value
• Consolidation is a market value
• Business expansion is market value
• Prizes are market value; and / or
• The buyer's appointment in the auction is
the transaction price stated in the minutes
of auction.
 Acquisition Value of Tax Objects
• If the NPOP is unknown or lower than the NJOP used in the imposition
of Land and Building Tax in the year the acquisition is made, the basis
for imposition is Land and Building Tax NJOP.
• The amount of the Non-Taxable Tax Objects Acquisition Value
(NPOPTKP) is set at a minimum of IDR 60,000,000 for each Taxpayer.
• In the case of obtaining rights due to inheritance or testament grants
received by an individual who is still in a bloodline family relationship in a
straight line one degree up or one degree down from a will grant
provider, including husband / wife, the NPOPTKP is set at a minimum of
IDR300,000,000.
• NPOPTKP is stipulated by Regional Regulation.
Calculation Tax of BPHTB

• Acquisition Value of Tax Objects/

Nilai Perolehan Objek Pajak (NPOP) XXX
• Acquisition Value of Non-Taxable Tax Objects/
Nilai Perolehan Objek Pajak Tidak Kena Pajak (NPOPTKP) (XXX)
• Acquisition Value of Taxable Tax Objects/
Nilai Perolehan Objek Pajak Kena Pajak (NPOPKP) XXX
• Taxes Payable = Tariff x NPOPKP
When Taxes Are Payable? At the time of:

• Sale and purchase is from the date the deed is drawn up and signed;
• Interchange is made from the date the deed is drawn up and signed;
• Grant is from the date the deed is drawn up and signed;
• A will grant is from the date the deed is drawn up and signed;
• Inheritance is from the date the person concerned registers his transfer of
rights to the land affairs office;
• Entry in the company or other legal entity is from the date the deed is drawn
up and signed;
• The separation of rights that results in the transfer starts from the date the
deed is drawn up and signed;
• The judge's decision is from the date of the court's decision which has
permanent legal force.
 When Taxes Are Payable? At the time of:…(2)

• The granting of new rights over land as a continuation of the release of

rights starts from the date of issuance of the decision to grant rights;
• The issuance of new rights other than waiver of rights shall be from the
date of issuance of the decree granting rights;
• A business merger is from the date the deeds are drawn up and signed
• Business consolidation is from the date the deeds are drawn up and
signed;
• Business expansion shall be from the date the deed is drawn up and
signed;
• Prizes are from the date the deed is drawn up and signed; and
• The auction is from the date of the appointment of the auction winner.
 Payment of BPHTB
• Taxpayers are required to pay tax payable without being based on the existence
of a tax assessment letter (self assessment), using a BPHTB Deposit Letter.
• Taxes payable are paid to the treasury of the Regional Government through
state-owned banks or BUMD banks or other payment places designated by the
Minister of Finance in regency / municipal areas which include the location of
land and / or buildings.
• The obligation to pay is carried out before:
– The deed of transfer of rights to land and / or buildings is signed by the /
Notary/ Pejabat Pembuat Akta Tanah - PPAT
– Minutes of auction for buyers are signed by the auction official
– The Head of the Land Office shall register rights in terms of: 1) granting of new
rights; 2) transfer of rights due to the implementation of a judge's decision,
testament grant, or inheritance
Income Tax Transfer of Rights to Land and
Buildings (PPhTB)

Tax is imposed when The party that

the owner of the land has to pay is the
and / or building sells or party who
transfers his ownership transfers the right
to another party

The final PPhTB rate is 2.5% of the gross amount (the highest value between the value based on the
Deed of Transfer of Rights and NJOP).
Exercise 1

On September 1, 2016, Mr. A and PT B conducted a transaction (transfer

of land and / or buildings from PT B to Mr. A) in front of a PPATK/notary
with a transaction price of IDR300,000,000. BPHTB Deposit was made
with the help of a notary employee and has been paid to Bank C. Calculate
the BPHTB paid by Mr. A if it is known that the NPOPTKP is IDR
80,000,000 (assuming a 5% rate)!

BHPTB = 5% x (300,000,000 – 80,000,000)

= 11,000,000,-
 Exercise 2
Mr. A sold land and / or buildings to PT B on October 1, 2016 in the
presence of PPAT Andi Maulana. The data for land in Jakarta is 400 m2
and a building with an area of 600 m2 with a transaction price of IDR
4,560,000,000 and the NJOP is IDR 4,018,000,000, with a NPOPTKP of
IDR60,000,000. (assuming a 5% BPHTB rate)

How much PPhTB is imposed on Mr. A?

PPhTB = 2,5% x 4,560,000,000 = 114,000,000

How much BPHTB must PT B pay?

BPHTB = 5% x (4,560,000,000 – 60,000,000) = 225,000,000
Materials, group discussion and other activities:

Go to EMAS2
 Dwi Martani - +6281318227080
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