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)