Page 4 - Newsletter (New Provisions on Land & Building Tax)

DDTC Newsletter Vol.02 | No.11 I December 2019 Page 4 of 4

New Provisions on Land & Building Tax

regulations. Moreover, customs obligations on goods that The enactment of the regulation will simultaneously
are not used in accordance with these objectives can be revoke several provisions in the Minister of Finance
settled through three mechanisms, namely transferred, Regulation No. 76/PMK.03/2013 concerning the
re-exported, and destroyed. Administration of Land and Building Tax in the Mining
Sector for Petroleum, Natural Gas, and Geothermal
Promulgated on 25 November 2019, this regulation takes Mining (MoF Reg. No. 76/2013) and its amendments.
effect 30 days thereafter and concurrently revokes the
Minister of Finance Regulation No. 163/PMK.04/2007 Through this regulation the government expands the
concerning the Granting of Import Duty Exemptions classification of PBB objects into six sectors, namely (i)
on Public Goods Imported by the Central Government plantation; (ii) the forestry sector; (iii) the petroleum
or Regional Government (PMK No. 163/2007) and its and natural gas mining sector, (iv) the mining sector for
amendments. geothermal exploitation, (v) the mineral or coal mining
sector, and (vi) other sectors. The former regulation only
Expanded Classification of Land and stipulated four PBB objects, namely (i) petroleum and
Building Taxable Objects and Revised natural gas; (ii) geothermal; (iii) areas used for petroleum
and natural gas mining activities, and (iv) areas used for
Sales Value of Taxable Object geothermal mining activities.

The government has expanded the taxable object Moreover, the government provides specific details on
the area coverage for each sector through this regulation.
classification for land and building tax for the sectors of
plantation, forestry, and mining (hereinafter: PBB-P3). Further, the government outlines the provisions relating
to the detailed procedures to determine the sales value
The addition is set forth in the Minister of Finance
Regulation No. 186/PMK.03/2019 concerning the of taxable objects (Nilai Jual Objek Pajak/NJOP) for each
taxable object. Promulgated on 11 December 2019, MoF
Classification of Taxable Objects and Procedures for
Determining the Sales Value of Land and Building Taxable Reg. No. 186/2019 shall take effect on 1 January 2020.
Objects (MoF Reg. No. 186/2019).

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For further information and advice related to taxation, please contact:

David Hamzah Damian, S.Sos., BKP., ADIT Romi Irawan S.E., M.B.A., LL.M Int. Tax B. Bawono Kristiaji, S.E., M.S.E., M.Sc. IBT., ADIT
Partner of Tax Compliance & Litigation Services Partner of Transfer Pricing Services Partner of Tax Research & Training Services
[email protected] [email protected] [email protected]

Deborah, S.Sos., LL.M. Int. Tax., BKP Yusuf Wangko Ngantung, LL.B., LL.M Int. Tax., ADIT Herjuno Wahyu Aji, M.Ak., BKP
Senior Manager of Tax Compliance & Litigation Services Senior Manager of International Tax / Transfer Pricing Services Senior Manager of Tax Compliance & Litigation Services
[email protected] [email protected] [email protected]

Ganda Christian Tobing, S.Sos., LL.M. Int. Tax Anggi P.I. Tambunan, S.Sos., M.H., ADIT., BKP Khisi Armaya Dhora, S.I.A., ADIT., BKP
Senior Manager of Tax Compliance & Litigation Services Manager of Tax Compliance & Litigation Services Manager of Tax Research & Training Services
[email protected] [email protected] [email protected]

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