Good News From Governor Anies Baswedan! Houses With NJOP Below IDR 2 Billion Are Tax Free

JAKARTA - The Provincial Government of DKI Jakarta has waived the Rural and Urban Land and Building Tax (PBB-P2) for houses for residents of the capital with a Tax Object Sales Value (NJOP) below Rp2 billion.

This is stated in the Governor's Regulation Number 23 of 2022 concerning Policy on Determination and Payment of PBB-P2 as an Effort for Economic Recovery in 2022.

"As is well known, regional taxes have an important role in the life of the state, as a source of regional revenue that is used to finance all regional expenditures," said DKI Jakarta Governor Anies Baswedan in a press statement quoted by Antara, Sunday, June 12.

Anies assessed that in the era of the pandemic, the government needed a large budget as an effort to contain the spread of the COVID-19 outbreak and economic recovery, including in DKI Jakarta.

Therefore, Anies explained, the regulation was issued as a form of concern for the DKI Jakarta Provincial Government (Pemprov) to the people of Jakarta and to restore the economy through local taxes.

The contents of the fiscal incentive policy and the facilities provided are as follows:   

1. Policy for Issuing SPPT PBB 2022

a) Objects of residential houses owned by private persons;

1) NJOP up to < IDR 2 billion: freed 100 percent

2) NJOP > IDR 2 billion: given a deduction factor (based on the need for a minimum area of land and buildings for Healthy Simple Houses, which is 60 square meters for the earth and 36 square meters for buildings) and a 10 percent exemption.

b) In addition to housing, 15 percent is exempted.

2. 2022 United Nations Payment Policy

a) Tax relief and elimination of administrative sanctions

1) Fiscal Year 2022:

• Given a discount of 15 percent if paying in June-August 2022.

• Given a discount of 10 percent if paying in September-October 2022.

• Given a discount of 5 percent if paying in November 2022. Sanctions are removed 100 percent for payments one month after maturity.

2) Fiscal Year 2013-2021:

• Given a discount of 10 percent if paying in June-October 2022.

• Given a discount of 5 percent if paying in November-December 2022.

• Sanctions are removed 100 percent.

b) Tax principal installments and elimination of administrative sanctions for taxpayers with PBB stipulations above IDR 100 million.

1) Fiscal Year 2022:

• Given a 15 percent discount if paying in June-August 2022.

• Given a discount of 10 percent if paying in September-October 2022.

• Given a 5 percent discount if paying in November 2022.

• Sanctions are removed 100 percent for payments 1 month after maturity.

2) Fiscal Year 2013-2021:

• 10 percent discount is given if you pay in June-October 2022.

• 5 percent discount is given if you pay in November-December 2022.

• 100 percent is removed.

In line with the digital transformation of tax payments, the 2022 SPPT PBB-P2 can be obtained by the people of Jakarta electronically through the online tax e-SPPT on the https://pajakonline.jakarta.go.id/esppt page.

Tax payments are essentially a form of mutual cooperation in strengthening the economy in our beloved DKI Jakarta. "Therefore, we urge the public to take advantage of these incentives and facilities," said Anies.