DKI Jakarta Provincial Government Provides UN-P2 Fiscal Incentives For Housing Below IDR 2 Billion In 2024

Jakarta - The DKI Jakarta Provincial Government provides regional fiscal incentives in the form of relief, reduction, exemption, and ease of payment of Rural and Urban Land and Building Tax (PBB-P2) for housing below Rp2 billion. This incentive applies specifically to one PBB-P2 object owned by taxpayers.

"In the previous year, housing with a value below Rp. 2 billion was taxed. However, for 2024, it was only given to one UN-P2 object owned by taxpayers," said Head of the DKI Jakarta Provincial Regional Revenue Agency (Bapenda) Lusiana Herawati when confirmed in Jakarta, Tuesday, June 18.

Lusiana explained that this policy is contained in Governor Regulation number 16 of 2024 as an implementation of Regional Regulation number 1 of 2024 concerning Regional Taxes and Regional Retribution. The policy aims to create justice in the collection of PBB-P2 through improving the formulation of providing regional tax incentives, so that it is more targeted.

This incentive is specifically given to taxpayers who have housing with a value below Rp. 2 billion. If the taxpayer has more than one tax object, then the exemption will be applied to the largest selling value of tax objects (NJOP). This policy considers the policy in previous years which aims for economic recovery due to the impact of COVID-19.

Lusiana said that this year, the DKI Jakarta Bapenda provides relief, reduction, and exemption from tax principals and tax sanctions, as well as tax payment installment facilities that are payable. The goal is to help reduce the burden on taxpayers in fulfilling tax obligations and maintaining people's purchasing power, so that regional tax revenues, especially PBB-P2, can be realized optimally.

"Tax payments are essentially a form of mutual cooperation in restoring economic conditions in DKI Jakarta. Therefore, we urge the public to take advantage of this fiscal incentive so that taxpayers can be helped in paying off tax obligations," said Lusiana.

The content of the DKI Jakarta PBB-P2 policy in 2024 includes:

In addition, there is a 50 percent principal exemption granted to the UN-P2 category that must be paid in the 2023 SPPT fiscal year of Rp0 and does not meet the provisions to be granted 100 percent exemption. There is also a certain exemption of value for the PBB-P2 that must be paid in the 2023 SPPT fiscal year of more than Rp. 0 and an increase in the 2024 PB-P2 tax year by more than 25 percent from the PBB-P2 which must be paid for the 2023 fiscal year.

With this policy, it is hoped that the people of DKI Jakarta can be helped in fulfilling their tax obligations. Lusiana appealed to the public to take advantage of this fiscal incentive in order to help reduce the tax burden and contribute to restoring the DKI Jakarta economy.