Taxes on property revised

Taxes on property revised

JAKARTA (JP): The sales of low-cost houses by real estate
developers are now subject to a final income tax of 2 percent,
while the tax rate on the sales of other types of houses,
including their land sites, is set at 5 percent, a government
regulation says.

A spokesman for the Ministry of Finance said yesterday that
Government Regulation No. 27/1996, which amends Government
Regulation No. 48/1994, also stipulates that the former income
tax rate of 3 percent on the sales of land/houses, can become
final if the sellers pay another 2 percent of the sales prices.

The spokesman said another government regulation, numbered
29/1996, stipulates that the leasing of land, houses and office
space by individuals, which used to be subject to a non-final
income tax of 12 percent of the leasing price, is now subject to
a final tax of 10 percent.

The income tax rate on the leasing of land, houses and office
space by companies is maintained at 6 percent of leasing prices
but the tax payment, which used to be non-final, is now
final.(08)