Land Sale and Purchase Tax: What Buyers and Sellers Must Pay

JAKARTA, KOMPAS.com - Land sale and purchase transactions not only involve the agreed price between the seller and buyer but also tax obligations that both parties must fulfil.

These taxes are an important component that needs to be understood to ensure the transaction process runs smoothly and in accordance with regulations.

In practice, both the seller and buyer have their respective tax obligations, the amounts of which have been set by the government.

Even the Head of the Public Relations and Protocol Bureau of the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN), Shamy Ardian, has explained regarding tax payments for land, including inherited land.

“The determination of heirs is certainly the authority and agreement of the heirs,” Shamy stated, quoted by Kompas.com, on Monday (30/3/2026).

Sellers of land are subject to final Income Tax (PPh) on the transfer of land and/or building rights.

Referring to information from the Directorate General of Taxes of the Ministry of Finance (Kemenkeu), this PPh must be paid before the sale and purchase deed (AJB) signing process is carried out in the presence of the Land Deed Official (PPAT). Proof of payment is one of the main requirements in that process.

Meanwhile, the buyer is obliged to pay the Acquisition Duty on Land and Building Rights (BPHTB).

This provision is regulated in Law (UU) No. 1 of 2022 on Financial Relations between the Central Government and Regional Governments.

BPHTB is generally 5 percent of the Taxable Acquisition Value of the Object (NPOP) after deducting the Non-Taxable Acquisition Value of the Object (NPOPTKP), the amount of which is set by the regional government.

According to information from the Ministry of ATR/BPN, BPHTB must be fully paid before the certificate name change process is carried out. Without this payment, the administrative process cannot proceed.

In addition to taxes, there are several other costs that typically arise in land sale and purchase transactions, such as PPAT service fees, certificate verification fees, and other administrative costs.