5% tax on land sales

JAKARTA (JP): The sale by individual taxpayers of any land worth less than Rp 60 million (US$25,445) is now subject to a 5 percent final income tax, a new ruling states.

According to Finance Minister Decree No. 392/KMK.04/1996, dated June 5, foundations and other similar organizations are also subject to the same rate of income tax when they sell their lands for less than Rp 60 million.

The new ruling is a follow-up to Government Regulation No. 27/1996, which overruled Government Regulation No. 48/1994. Under the latter, the sale of lands by individual tax payers at less than Rp 60 million was once excluded from income tax as it was considered to be a non-taxable object. (rid)