Knowing What PBB-P2 Is: Understanding And Differences With UN-P3

Illustration of land and building taxes (Doc. Gunungkidul Regency Government)

YOGYAKARTA What is PBB-P2? In taxation, PBB-P2 is one type of tax imposed on land and building ownership or exploitation. This type of land and building tax (PBB) targets individuals or agencies who actually control or utilize the earth and/or buildings.

Another type of land and building tax (PBB) is the PBB-P3 which targets the Plantation, Forestry and Mining sectors.

Well, this article will invite you to know what PBB-P2 is and its difference to the PBB-P3. Let's see the explanation in this.

PBB P-2 stands for land taxes and rural and urban buildings. According to Law Number 1 of 2022 concerning Financial Relations between the Central Government and the Regional Government (UU HKPD), PBB-P2 is a tax on the earth and/or buildings owned, controlled, and/or utilized by individuals or agencies, except for areas used for plantation, forestry and mining business activities.

Unlike the PBB-P2, PBB-3 is a tax on the earth and/or buildings owned, controlled, and/or utilized by individuals or agencies, for plantation, forestry and mining business activities.

PBB-P3 is levyed by the central government which is regulated by Law Number 12 of 1985.

The differences between the PBB-P2 and PBB-P3 can be recognized from tax objects, those who manage, to the amount of the tariff imposed. The explanation follows:

Tax Object

Tax objects imposed by PBB-P2 can be in the form of buildings in urban or rural areas, such as hotels, houses, and factories. However, based on Article 38 paragraph (2) of the HKPD Law, there are several tax objects exempted from PBB-P2 levies, including:

At UN-P3, tax objects are classified as follows:

Tax Manager

According to the HKPD Law, the PBB-P2 is regulated and managed by each local city/district government. Meanwhile, the PBB-P3 is regulated and managed by the central government.

Tax Tariffs

PBB-P2 collection is carried out by local governments with the following tariff provisions:

The amount of NJOP that is not taxable is IDR 10,000,000 (ten million rupiah) for each taxpayer.

Meanwhile, at the PBB, only a single tariff was applied, which was 0.5 percent. The basis for the imposition of taxes using NJKP (taxable selling value) is at least 20 percent and the highest is 100 percent of NJOP. NJOP is not taxable for PBB-P3, which is IDR 12 million.

That's information about what PBB-P2 is and it's different from UN-P3. Get news updates of other options only on VOI.ID.