SWITU PMK 61 Tahun 2024 English

MINISTRY OF FINANCE REGULATIONS NO. 61 YEAR 2024 (PMK 61/2024) CONCERNING ADDITIONAL VALUE ADDED TAX INCENTIVES ON SUPPLIES OF LANDED HOUSES AND FLAT UNITS BORNE BY THE GOVERNMENT FOR THE 2024 FISCAL YEAR

The Indonesian Government has implemented a policy for Value Added Tax (VAT) incentives borne by the Government on delivery of landed houses and flat units in 2023 and 2024 in accordance with Minister of Finance Regulation (“PMK”) No. 130 Year 2023 and PMK No. 7 Year 2024.

In order to accelerate the increasing of economic growth through stimulating public interest to spend in housing sector. The Indonesian government issued PMK No. 61 Year 2024 to provide additional Value Added Tax (VAT) incentives for landed houses and flat units from September 2024 until December 2024.

Criteria of VAT for Delivery of Landed Houses and Flat Units borne by Government in September 2024 until December 2024

1. The VAT payable is borne by Government on the delivery of landed houses and flat units is payable if this occurs when:
   1. the sale and purchase deed signed and made by Land Deed Official (“PPAT”) or the full payment agreement signed in the presence of a notary from period 1 September 2024 to 31 December 2024;
   2. the actual transfer of rights to use or occupy the landed house or flat by signing the Minutes of Handover (BAST) from period 1 September 2024 to 31 December 2024. Minutes of Handover must be registered in the application at the Ministry of Public Works and Public Housing (“PUPR”) and/or the Public Housing Savings Management Agency maximum at the end of the following month after the handover.
2. The criteria for the delivery of landed houses and flat units to obtain VAT borne by Government are as follows:
   1. The Selling Price amounted to maximum of Rp.5.000.000.000 (five billion rupiah);
   2. Landed houses or flat units that have obtained a house identity code through an application from the Ministry of PUPR and/or the Public Housing Savings Management Agency and supplied for the first time by Taxable Entrepreneur as the contractor and never been handed over before;
   3. The buyer has made a down payment or instalment before the enactment of this Ministry Regulation with the following requirement:
      • The first down payment or instalment is paid to the seller no later than 1 September 2024.
      • The sale and purchase deed and BAST are signed from period 1 September 2024 until 31 December 2024.
3. VAT borne by Government facilities can be utilized by an individual for the purchase of 1 (one) housing unit. For consumers who have utilized the VAT incentives based on PMK 7/2024 can utilize the VAT incentives from this Ministry Regulation to purchase another landed houses or flat units. Thus, for consumers who have made a transaction to purchase a landed house or flat unit before 1 September 2024 then cancel the transaction cannot utilize the VAT incentives for the same landed house or flat unit.
4. Individuals who are entitled to obtain VAT borne by Government are Indonesian citizens who have a Tax Identity Number or ID Number and foreigners who have a Tax Identity Number as long as they comply with the rules regarding ownership of landed houses or flats.
5. The amount of VAT borne by Government provided to the buyer is 100% from VAT Payable with Taxable Base up to IDR 2.000.000.000 (Two Billion Indonesian Rupiah) with maximum selling price IDR 5.000.000.000 (Five Billion Indonesian Rupiah), will be given starting from 1 September 2024 until 31 December 2024.
6. VAT payable on the delivery of landed houses and flat units cannot be borne by the Government in terms of:
   1. The object handed over is not a landed house or flat unit;
   2. The down payment or first instalment has been made before 1 September 2024;
   3. The hand over is done before 1 September 2024 or after 31 December 2024;
   4. The acquisition of more than 1 (one) landed house or 1 (one) flat unit by 1 (one) individual;
   5. The landed houses or flat units are handed over within one year of delivery;
   6. The hand over does not use Tax Invoice as intended in paragraph (2), paragraph (3), paragraph (4), and paragraph (5);
   7. Taxable Entrepreneur does not register BAST as intended in Article 3 paragraph (3);
   8. Taxable Entrepreneur does not fulfill the obligation to make the report of VAT realization borne by the Government.

This regulation was promulgated on September 19, 2024 and come into effect on the date of promulgation.

For Tax Service Assistance, please contact:

Rani Widianti

                   T. (+6221) 2222-0200

                   E. [email protected]

Alvina Oktavia

                 T. (+6221) 2222-0200

                 E. [email protected]