Undang-Undang Pajak Bumi dan Bangunan (English Version)

1.

Landshall be the surface of land and the body of land underneath.

2.

Buildingsshall be technical construction which are planted or installed permanently onland and/or waters.

3.

Thesale value of the tax object shall be the average price obtained fromtransactions which take place properly, and in the absence of transactions,the sale value of the tax object shall be determined by comparing it with theprice of another similar object, or the new acquisition value, or the salevalue of a alternate tax object.

4.

Thereport on the tax object shall be the letter used by the taxpayer to reportdata on the tax object according to provisions in this law.

5.

Thenotification on tax due shall be the letter used by the Directorate General ofTaxation to notify the taxpayer the amount of tax due.

-

neighborhoodpaths within a building complex such as a hotel, factory, and its yards, andother which constitute one unit with the aforesaid building complex;

-

tollroads;

-

swimmingpools;

-

luxuryfences;

-

sportsground;

-

shipyards,wharfs;

-

luxuryparks;

-

oil,water and gas reservoirs/refineries, oil pipes;

-

other facilities that bring benefits.

-

Pricecomparison with another object of the kind, shall bean approach/method of determining the sale value of a certain tax object bycomparing it with another tax object of the same type, which is closelylocated and has the same function and whose sale price is already known.

-

Thenew acquisition value shall be an approach/method of determining the salevalue of a certain tax object by calculating the entire cost spent to obtain theobject at the moment of assessment, deducted by depreciation based on thephysical condition of the object.

-

Thealternate sale value shall be an approach/method of determining the salevalue of a certain tax object on the basis of the tax object.

(1)

Theobject of tax shall be land/or buildings.

(2)

Theclassification of the object as meant in paragraph (1) shall be stipulated bythe Minister of Finance.

1.

Location;

2.

Designations;

3.

Utilization;

4.

Environmentalconditions and so forth.

1.

thematerials used;

2.

engineering;

3.

locations;

4.

environmental conditions and so forth.

(1)

Taxobjects not taxable with Land and Building Tax shall be tax objects, which:

a.

areutilized merely in the service of the public interest in the sector ofreligion, social affairs, health, education and national culture, not for thepurpose of profit earning;

b.

areutilized for a cemetery, ancient heritage or the alike;

c.

constituteprotected forests, natural reserve forests, tourism forests, national parks, grazingland controlled by a village, and state land not yet charged with any right;

d.

areused by a diplomatic representation, based on the reciprocal treatmentprinciple;

e.

are used by an agency or representation of an internationalorganization, as determined by the Minister of Finance.

(2)

TaxObjects, used by the State for the implementation of Government, thestipulation of the tax imposition thereof, shall be further regulated by aGovernment Regulation.

(3)

TheSales Value of Non-taxable Tax Objects in stipulated to be Rp 8,000,000.00(eight million rupiah) for each Taxpayer.

(4)

Theadjustment of the amount of Sales Value of Non-taxable objects as referred toin paragraph (3) Shall be stipulated by the Minister of Finance.

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MoslemEducation Centers;

-

IslamicSchools;

-

landgrants;

-

Generalhospital.

1.

ATaxpayer has only one Tax Object, constituting land with a value as follows:

-

LandTax Object sales value Rp3,000,000.00

-

Non-TaxableTax Object Sales Value Rp 8,000,000.00

Becausethe Sales Value of the Tax Object is below the Non-Taxable Tax Object SalesValue, said Tax Object shall not be imposed with Land and Building Tax.

2.

Ataxpayer has two Tax Objects, constituting land and buildings, respectivelyin Village A and in Village B, with the following values:

a.

VillageA

-

SalesValue of Land Tax Object

=

Rp8,000,000.00

-

SalesValue of Building Tax Object

=

Rp5,000,000.00

Tax ObjectSales Value for Tax Calculation:

-

SalesValue of Land Tax Object

Rp8,000,000.00

-

SalesValue of Building Tax Object

Rp5,000,000.00 (+)

-

Tax ObjectSales Value as

basisfor Tax Imposition

Rp13,000,000.00

-

Non-TaxableTax Object Sales Value

Rp8,000,000.00 (-)

-

TaxObject Sales Value for the Tax Calculation

Rp5,000,000.00

==============

b.

VillageB

-

LandTax Object Sales Value

Rp5,000,000.00

-

BuildingTax Object Sales Value

Rp3,000,000.00

TaxObject Sales Value for Tax Calculation:

-

LandTax Object Sales Value

Rp5,000,000.00

-

BuildingTax Object Sales Value

Rp3,000,000.00(+)

-

TaxObject Sales Value as basis for Tax Imposition

Rp8,000,000.00

-

Non-TaxableTax Object Sales Value

Rp.0.00 (-)

TaxObject Sales Value for Tax Calculation

Rp8,000,000.00

============

ForTax Objects in Village B, no Non-Taxable Tax Object Sales Value of Rp. 8,000,000.00 (eight million) is provided,because the Non-Taxable Tax Object Sales Value has already been given to theTax Object, located in Village A.

3.

ATaxpayer has two Tax Objects, consisting of land and buildings in Village C,with the following value:

a.

ObjectI

-

LandTax Object Sales Value

Rp4,000,000.00

-

BuildingTax Object Sales Value

Rp2,000,000.00

TaxObject Sales Value for Tax Calculation:

-

LandTax Object Sales Value

Rp4,000,000.00

-

BuildingTax Object Sales Value.

Rp2,000,000.00 (-)

-

TaxObject Sales Value as basis for Tax Imposition

Rp6,000,000.00

-

Non-TaxableTax Object Sales Value

Rp8,000,000.00

Because the Tax Object's Sales Value is lower thanthe Sales Value of the Non-Taxable Tax Object, so said Tax Object is notimposed with Land and Building Tax.

b.

ObjectII

-

LandTax Object Sales Value

Rp4,000,000.00

-

BuildingTax Object Sales Value

Rp1,000,000.00

TaxObject Sales Value for Tax Calculation:

-

SalesValue of Land Tax Object

Rp4,000,000.00

-

SalesValue of Building Tax Object

Rp1,000,000.00 (+)

-

SalesValue of Tax Object as basis for tax imposition

Rp5,000,000.00

-

SalesValue of Non-Taxable Tax Object

Rp 0.00 (-)

-

TaxObject Sales Value for Tax Calculation

Rp5,000,000.00

(1)

Thetax subject shall be individuals or organizations that actually have certain rights overland, and/or obtain benefits from land, and/or possess, control, and/orobtain benefits from buildings.

(2)

Thetax subject as meant in paragraph (1) that is subject to the obligation oftax payment shall become the taxpayer under this law.

(3)

Inthe case of the tax subject for a certain tax object being unclear, the DirectorGeneral of Taxation shall be allowed to determine the tax subject as meant inArticle (1) as the taxpayer.

(4)

Thetax subject as determined according to paragraph (3) shall be allowed tosubmit a written statement to the Director General of Taxation declaring thathe/she/it is not the taxpayer for the tax object concerned.

(5)

Ifthe statement submitted by the taxpayer as meant in paragraph (4) isapproved, the Director General of Taxation shall cancel the stipulation of the taxpayer as meant in paragraph (3)within one month starting from the receipt of the aforesaid statement.

(6)

Ifthe statement submitted is not approved, the Director General of Taxationshall issue a decision on rejection along with reasons for such rejection.

(7)

Ifafter the period of one month starting from the date of receipt of thestatement as meant in paragraph (4) the Director General of Taxation makes nodecision, the statement submitted shall be considered approved.

1.

Taxsubject A obtains benefits from or makes use of land and/or buildings ownedby another person named B not because of certain right based on law norbecause of a certain agreement, so that in this case A who gains benefitsfrom or makes use of land and/or buildings as meant above shall be determinedas the taxpayer.

2.

Acertain tax object is being disputed at court over its ownership, so that theindividual or organization who/which gains benefits from or makes use of thetax object shall be determined as the taxpayer.

3.

Atax subject for a long time lives outside the area where a certain tax objectis located, while an individual or organization is empowered to maintain thetax object, so that the authorized individual or organization can beappointed as the taxpayer.

(1)

Thetax base shall be the sale value of the tax object.

(2)

Thesale value of the tax object as meant in paragraph (1) shall be fixed every threeyears by the Minister of Finance, except certain areas for which it is fixedannually according to developments in the areas concerned.

(3)

Thetax calculation base shall be the taxable sale value fixed at the minimum of20% (twenty percent) and the maximum of 100% (one hundred percent) of thesale value of the tax object.

(4)

Thepercentage of the taxable sale value as meant in paragraph (3) shall be fixedby a government regulation by taking into account the national economiccondition.

1.

Sale value of a tax object = Rp1,000,000.-

Percentageof taxable sale value is e.g. 20% so that the sale value subject to tax = 20%x Rp 1,000,000.- = Rp 200,000.-

2.

Sale value of a tax object = Rp1,000,000.-

Percentageof taxable sale is e.g. 50% so that the sale value subject to tax = 50% x Rp1,000,000.- = Rp 500,000.-

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Landmeasuring 800 m2 with the sale price of Rp 300,000/m2.

-

Abuilding measuring 400 m2 with the sale value of Rp 350,000/m2.

-

Aluxury garden measuring 200 m2 with the sale value of Rp 50,000/m2.

-

Luxuryfences 120 m in length and 1.5 m in average height with the sale value of Rp175,000/m2.

1.

Sale value of land: 800 x Rp300,000

=

Rp240,000,000.-

Sale value of building:

a.

Houseand garage 400 x Rp 350,000

=

Rp 140,000,000.-

b.

Luxurygarden 200 x Rp 50,000

=

Rp 10,000,000.-

c.

Luxuryfence (120 x 1.5) x Rp 175,000

=

Rp 31,500,000.-

Rp181,500,000.-

Limit ofuntaxed sale value of building

Rp 2,000,000.-

Sale vale of building

=

Rp179,500,000.-

Sale value of land and building

=

Rp419,500,000.-

2.

Amountsof tax on land and buildings due:

a.

Onland

= 0.5%x 20% x Rp 240,000,000.-

=

Rp.240,000.-

b.

Onbuilding

= 0.5%x 20% x Rp 179,500,000.-

=

Rp. 179,500.-

Totalof tax due

Rp.419,500.-

(1)

Thetax year shall be the period of one calendar year.

(2)

Thetime that determines the moment tax is due shall be according to the condition of theobject on January 1.

(3)

Theplace where tax is due:

a.

forthe Jakartaarea, in the Special Region of Jakarta;

b.

forother areas, in the second level regency or the second level municipality;

in which the tax object is located.

a.

Thetax object on January 1, 1986 is in the form of land and buildings.On January10, 1986 the buildings catch fire, so the tax due remains on the basis of thecondition of the tax object on January 1, 1986, i.e. the situation before thefire.

b.

Thetax object on January 1, 1986 is in the form of a plot of land without anybuildings on it. On August 10, 1986 data on the land are recorded, and itsturns out that a building was already erected on it, so that tax due for 1986remains on the basis of the condition on January 1, 1986.

(1)

Withinthe framework of data collection, the tax subject shall register the taxobject by filling out the report on the tax object.

(2)

Thereport on the tax object as meant in paragraph (1) shall be filled outclearly, truthfully and completely, and signed and submitted to theDirectorate General of Taxation whose operational area covers the location ofthe tax object, not later than 30 (thirty) days after the date of receipt ofthe report on the tax object by the tax subject.

(3)

Theimplementation and procedure of registration of the tax object as meant inparagraph (1) and paragraph (2) shall be further regulated by the Minister ofFinance.

(1)

Basedon the report on the tax object as meant in Article 9 paragraph (1), the DirectorGeneral of Taxation shall issue the notification on the tax due.

(2)

TheDirector General of Taxation shall be allowed to issue the tax assessmentletter in the following cases:

a.

ifthe report on the tax object is not submitted according to Article 9paragraph (2) and after written warnings are issued the report is notsubmitted as required in the warnings;

b.

if based on the result of examination or other information it turnsout that the amount of tax due is greater than the amount of tax calculatedaccording to the report on the tax object submitted by the taxpayer.

(3)

Theamount of tax due in the tax assessment letter as meant in paragraph (2) (a)shall be the basic tax plus an administrative fine of 25% (twenty-fivepercent) calculated from the basic tax.

(4)

Theamount of tax due in the tax assessment letter as meant in paragraph (2) (b)shall be the difference between the tax due based on the result ofexamination or other information and the tax due calculated according to thereport on the tax object plus an administrative fine of 25% (twenty-fivepercent) calculated from the difference of the tax due.

Basedon SPOP, SPPT is issued

=

Rp1,000,000.-

Basedon examination, the tax that should

actuallydue in the tax assessment (SKP)

=

Rp1,500,000.-

Difference

=

Rp 500,000.-

Administrativefine 25% x Rp 500,000

=

Rp 125,000.

Totalof tax due in SKP

=

Rp 625,000

(1)

Thetax to be paid based on the notification on the tax due as meant in Article 10 paragraph(1) shall be settled not later than 6 (six) months after the date of receipt ofthe notification on tax due by the taxpayer.

(2)

Thetax to be paid based on the tax assessment letter as meant in Article 10paragraph (3) and paragraph (4) shall be settled not later than 1 (one) monthafter the date of receipt of the tax assessment letter by the taxpayer.

(3)

Thetax due which on the date of maturity is not paid or is underpaid shall besubject to an administrative fine of 2% (two percent) per month, calculated fromthe date of maturity through the date of payment for a maximum period of 24(twenty four) months.

(4)

Theadministrative fine as meant inparagraph (3) plus the tax not yet paid or underpaid shall be collected withthe tax collection letter, which must be settled not later than 1(one) monthfrom the date of receipt of the tax collection letter by the taxpayer.

(5)

Thetax due shall be paid at banks, post and giro offices, and other places asappointed by the Minister of Finance.

(1)

Thetaxpayer shall be allowed to submit an objection letter to the DirectorGeneral of Taxation against:

a.

thenotification on tax due;

b.

the tax assessment letter.

(2)

Theobjection letter shall be submitted in the Indonesian language by statingreasons clearly.

(3)

Theobjection letter shall be submitted within 3 (three) months from the date of receiptof any of the letters as meant in paragraph (1) by the taxpayer, unless thetaxpayer can show that the period is impossible to meet due to conditionsbeyond control.

(4)

Therecord of receipt of the objection letter given by officials of the DirectorateGeneral of Taxation appointed for this purpose or the record of sending ofthe objection letter by registered mail shall serve as evidence on the receipt of theobjection letter in the interest of the taxpayer.

(5)

Ifrequested by the taxpayer for the purpose of submitting the objection letter,the Director General of Taxation shall explain in writing the basis of taximposition.

(6)

Thesubmission in of the objection letter shall not postpone the obligation of taxpayment.

(1)

TheDirector General of Taxation shall issue a decision on the objection within amaximum of 12 (twelve) months from the date of receipt of the objectionletter.

(2)

Beforea decision is issued, the taxpayer may submit additional information orwritten explanations.

(3)

Thedecision of the Director General of Taxation on the objection may be grantedpart or whole, rejected it, or increase the amount of tax due.

(4)

Ifthe taxpayer submits an objection against the tax assessment as meant in Article10 paragraph (2) (a), the taxpayer concerned shall prove the inaccuracy ofthe aforesaid assessment.

(5)

Ifafter the period as meant in paragraph (1) the Director General of Taxationmakes no decision, the objection letter submitted shall be consideredgranted.

(1)

Taxreceipts shall belong to the state, which are divided between the centralgovernment and the regional administration to the extent of at least 90%(ninety percent) for the second level regional administration and the first levelregional administration as the revenues of the regions concerned.

(2)

Theportion of receipts for the regional administration as meant in paragraph (1)shall for the greater part be allocated to the second level regionaladministration.

(3)

Theratio of division of tax receipts as meant in paragraph (1) and paragraph (2)shall be stipulated by a government regulation.

(1)

TheMinister of Finance shall be allowed to grant relief on the tax due:

a.

becauseof certain conditions of the tax object as related to the tax subject and/orowing to certain other causes;

b.

in the case of the tax object being hit by natural disasters or otherextraordinary circumstances.

(2)

Provisionsconcerning the granting of tax relief as meant in paragraph (1) shallstipulated by the Minister of Finance.

-

Naturaldisasters are earthquake, floods, landslide.

-

Otherextraordinary causes:

-

fires;

-

droughts;

-

plantepidemics;

-

plan pests.

(1)

Officialswhose functions or tasks are directly related to the tax object shall:

a.

submitmonthly reports on all mutations and developments of the tax object inwriting to the Directorate General of Taxation whose operational area coversthe location of the tax object;

b.

provide information needed at the request of the DirectorateGeneral of Taxation.

(2)

Theobligation to provide information as meant in paragraph (1) (b) shall also bevalid for other officials having to do with the tax object.

(3)

Inthe case of the officials as meant in paragraph (1) and paragraph (2) beingobligated to maintain confidentiality, such an obligation shall not apply asfar as the implementation of this law is concerned.

(4)

Theprocedure for submitting reports and requesting information as meant inparagraph (1) and paragraph (2) shall be stipulated by the Minister ofFinance.

-

Officials whose functions aredirectly related to the object are: district heads as officials authorized toissued deeds on land, and other officials authorizedto issues deeds on land.

-

Writtenreports on mutations of the tax object, among others e.g. transactions,grants, inheritance, shall be submitted to the Directorate General ofTaxation whose operational area covers the location of the tax object.

a.

failsto return/submit the report on the tax object to the Directorate General ofTaxation;

b.

submitsthe report on the tax object, but with false or incomplete contents and/or withfalse information attached;

(1)

Whoeverintentionally:

a.

failsto return/submit the report on the tax object to the Directorate General of Taxation;

b.

submitsthe report on the tax object, but with false or incomplete contents and/orwith false information attached;

c.

showsfalse or falsified letters or false or falsified documents as if they weretrue;

d.

failsto show or submit letters or other documents;

e.

failsto show data or provide information needed;

Whichinflict losses upon the state, shall be subject to maximum imprisonment of 2 (two)years or a maximum fine of 5 (five) times the amount of tax due.

(2)

Theacts as meant in paragraph (1) (d) and (e) committed by other than thetaxpayer concerned shall be subject to a maximum detention of 1 (one) year ora maximum fine of Rp. 2,000,000 (two million rupiahs).

(3)

Thepunishment as meant in paragraph (1) shall be double if the criminal acts are repeatedbefore 1 (one) year, from the end of the entire imprisonment to be served, orstarting from the payment of the fine.