Selling land, a house or an apartment? The seller pays a final 2.5% of the gross price — not of the profit — before the deed can be signed. See the tax and what it means relative to your gain.
Gains on land and buildings are not taxed as capital gains in Indonesia. Instead, PP 34/2016 imposes a final tax on the gross transfer value — the price in the deed, or the NJOP if that is higher. The seller must pay it before the notary (PPAT) will sign the sale deed (AJB), and the land office will not register a transfer without proof of payment and validation.
| Transfer | Rate |
|---|---|
| Standard sale of land and/or buildings | 2.5% |
| Simple houses and simple flats sold by a developer whose main business is property | 1% |
| Sale or transfer to the government for public interest | 0% |
| Transfers between family members by gift or inheritance (with an exemption certificate) | Not taxed |
Because the tax is on gross value, it hits short-term sellers relatively hard. Selling for Rp2 billion something bought for Rp1.2 billion costs Rp50 million — about 6% of the Rp800 million gain. Selling at a loss still costs 2.5% of the price. On the other hand, long-held property with a large gain is taxed lightly.
Developers, inheritances and transfers into companies have special rules. Work with your PPAT and confirm with DJP.