The Indonesian government has announced plans to eliminate taxes related to the purchase and sale of real estate in order to stimulate the housing market and support President Prabowo Subianto's goal of building three million new apartments per year. This initiative was initiated by the Ministry of Housing and the Ministry of Internal Affairs.
Today, when buying a home in Indonesia, VAT of 11% and transfer of ownership tax of 5% are charged, and sellers pay income tax of 2.5%.
What changes do the authorities want to introduce? Abolish taxes related to real estate, including value added tax (VAT) levied on purchases on the primary market, land and Building Acquisition tax (BPHTB) and income tax (PPh).
Note that VAT has already been canceled when buying a home for less than 2 billion rupees (126,000 US dollars). This applies to both Indonesian citizens and foreigners with tax numbers.
Source: Indonesia Expat