Jakarta: The government has changed the provisions on the limit of luxury property values subject to luxury goods tax (PPnBM) in a bid to boost the growth of property business.
On June 10, Minister of Finance Sri Mulyani Indrawati signed Regulation of Minister of Finance Number 86/PMK.010/2019 on Amendment to Regulation of Minister of Finance Number 35/PMK.010/2017 on Types of Goods deemed Luxury Items excluding Automotive Products that Subject to Luxury Goods Tax.
In Appendix I of the Regulation, there is a list of types of taxable goods classified as luxury items excluding automotive products that are subject to 20 percent tax.
“Luxury properties such as luxury homes, apartments, condominiums, town houses, and the like with a selling price of Rp30 billion rupiahs or more,” Cabinet Secretary's website quoted Appendix I of the Regulation.
Previously, the Minister of Finance Regulation Number 35/PMK.010/2017 listed types of taxable goods classified as luxury items excluding automotive products that are subject to 20 percent tax, namely houses and town houses of non-strata title with a selling price of Rp20 billion rupiah or more as well as apartments, condominiums, town houses of strata title, and the like with a selling price of Rp10 billion rupiahs or more.
On June 11, The Ministerial Regulation was enacted by Director General of Laws and Regulations of Ministry of Law and Human Rights Widodo Ekatjahjana and came into force on the date of its promulgation.