Page 2 - Newsletter (Provision Regarding the Calculation of Taxable Income for Life Insurance Companies)

DDTC Newsletter Vol.01 | No.06 I April 2019 Page 2 of 4

Provision Regarding the Calculation of Taxable Income for Life Insurance Companies

Latest Provisions concerning Rural ership/control/utilization rights; and/or
and Urban Land and Building Taxes in (b) there are no changes and/or addition of functions
DKI Jakarta for the house building into a building used for com-
mercial activities in whole or partly put changes
and/or functional additions up to 50% of the total
Throughout April 2019, the local government of Special area of the land and/or building.

Capital Region of Jakarta (DKI Jakarta) intensively issued
the latest provisions regarding Land and Building Taxes Moreover, the provision of PBB-P2 for the 2019 tax year
of Rural and Urban Areas (Pajak Bumi dan Bangunan which refers to previous provisions will differ if the
Perdesaan dan Perkotaan/PBB-P2). The first PBB-P2 object is in the form of vacant land that is not utilized.
provision to be renewed that month pertains to the Sales Based on this provision, vacant land located along the
Value of Taxable Object (Nilai Jual Objek Pajak/NJOP) arterial roads, namely Jalan M.H. Thamrin; Jalan Jenderal
through the Governor of DKI Jakarta Regulation No. 37 of Sudirman; Jalan H.R. Rasuna Said; Jalan Jenderal Gatot
2019 (Pergub DKI Jakarta No. 37/2019). Subroto; and Jalan M.T. Haryono will be imposed with
200% of payable tax of PBB-P2 in the year concerned.
The local government then issued a regulation concerning
PBB-P2 exemption through the DKI Jakarta Governor Conversely, if the land is utilized as green open space
Regulation Number 38 of 2019 (Pergub DKI Jakarta No. (ruang terbuka hijau/RTH) that can be used by the public
1
38/2019). This Governor Regulation was signed by the for free in general, the PBB-P2 for this object will only
Governor of DKI Jakarta, Anies Baswedan, on 9 April 2019 be 50% of total tax payable in the year concerned. This
and promulgated on 15 April 2019. One of the important provision has come into effect as of 15 April 2019 are
points in this Governor Regulation is the Article 4A which set to apply retroactively from 1 January 2019 and will
provides a signal that the PBB-P2 exemption policy for expire on 31 December 2019.
residences which are valued under Rp1 billion will be
abolished after 31 December 2019. In addition, based on A few days after the promulgation of Pergub DKI Jakarta
another article in this regulation, PBB-P2 also will not No. 41/2019, the provincial government of DKI Jakarta
be exempted if there is a transfer of ownership/control/ issued a new PBB-P2 provision again on 24 April 2019
utilization rights to corporate taxpayers. through the DKI Jakarta Governor Regulation No. 42 of
2019 (Pergub DKI Jakarta No. 42/2019). This regulation
Furthermore, due to a significant increase in the NJOP of stipulation that the DKI Jakarta Regional Government
PBB-P2 DKI Jakarta which has been regulated through gives an overall exemption of 100% of PBB-P2 payable to
Pergub DKI Jakarta No. 37/2019, the local government the following taxpayers:
of DKI Jakarta concurrently issued the PBB-P2 regulation
1. individual taxpayers that work as teachers and edu-
for buildings in the form of houses for personal taxpayers.
cation staff and/or lecturers and college education
This is set forth in the DKI Jakarta Governor Regulation
staff, including retirees;
No. 41 of 2019 concerning the Imposition of Land and
2. individual taxpayers who are veterans and pioneer
Building Taxes of Rural and Urban Areas to Individual
of national independence;
Taxpayers on the Object of Building Tax in the Form of
Houses for the 2019 Tax Year (Pergub DKI Jakarta No. 3. individual taxpayers who have received the title as
41/2019). National Patriot;
4. individual taxpayers who have received honors in
This provision states that the imposition of PBB-P2 the form of stars from the President of the Republic
for the individual taxpayer on the PBB-P2 object in the of Indonesia;
form of houses for the tax year 2019 still refers to the
5. individual taxpayers who are the former President
provisions for the 2018 tax year. However, two criteria
and former Vice President of the Republic of Indo-
must be met, namely:
nesia,
(a) there are no changes in regional tax data including 6. former governor and former deputy governor;
changes in the area of the land and/or building and

7. a personal retiree of the Indonesian National Army
changes in taxpayer data due to the transfer of own-
(Tentara Nasional Indonesia/TNI)/Police of the Re-
public of Indonesia (Kepolisian Republik Indonesia/
Polri); and/or
1 Pergub DKI Jakarta No. 38/2019 itself is the Second
Amendment to Pergub DKI Jakarta No. 259/2015 8. a personal retired civil servant.
concerning the Exemption of PBB-P2 on Houses, Simple
Rental Flats (Rumah Susun Sederhana Sewa), and Simple Previously, PBB-P2 in DKI Jakarta for taxpayers in the
Own Flats (Rumah Susun Sederhana Milik) with NJOP up to abovementioned categories was not fully exempted, but
Rp1,000,000,000.00. only partially. This was regulated through the DKI Jakarta