Lease Tax in Indonesia
Rental income or Lease tax (PPH) is levied in the amount of 10% of the Lease Value for tax residents in Indonesia. For non-tax Residents the Lease Tax due is 20% of the Lease Value.
Land and Building Tax in Indonesia
Land and Building tax or “PBB” (Pajak Bumi dan Bangunan) is levied based on 0.1% of the sale value for properties valued at less than IDR 1 billion or 0.2% of properties valued above this. The sales value of the object (NJOPKP) is determined by the local revenue office. The tax is separated between Land and Buildings. This is due annually based on the date mentioned on the tax application.
Construction Tax in Indonesia
Construction tax is due once the building work is completed. The value of the tax is determined based on the “Rancangan Anggaran Biaya” (RAB) of the building; this is the Construction Budget of the building. The rate of tax is 2% (or 20% of the Value Added Tax amount which is currently 10%). Depending on whether the construction was done in private or with a contractor will determine who is responsible for the tax. If the construction was done by a contractor, this would become the contractors tax liability.
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