3 Dec 2018
INDONESIA: Luxury Property Tax Threshold Raised in Bid to Boost Real Estate Sector
Buyers of residential property valued at less than Rupiah 30 billion (US$1.97 million) will no longer be obliged to pay a 20% luxury tax surcharge. This supersedes the previous Rupiah 20 billion (US$1.31 million) threshold for the tax.
In an additional move, tax on the sale or transfer of luxury property is to be cut from 5% to 1% of the transaction value or the assessed value, whichever is deemed to be higher. Although the changes have been billed as representing a shot in the arm for the country’s real estate and construction sectors, no date has been set for their implementation.