Payment and Reporting of Income Tax from the Transfer of Real Estate under Collective-Investment Contract Schemes

The Ministry of Finance (“Ministry”) has issued Regulation No. 37/PMK.03/2017 on Procedures for the Payment and Reporting of Income Tax for Income Deriving from Transfers of Real Estate under Certain Collective-Investment Contract Schemes (“Regulation 37/2017”) in order to implement Article 5 of Government Regulation No. 40 of 2016 on Income Tax for Income from the Transfer of Real Estate under Certain Collective-Investment Contract Schemes, [1] which required further provisions to be set regarding the payment of said income tax as well as its reporting.Previously, such provisions were regulated under Ministry Regulation No. 200/PMK.03/2015 on Tax Treatment for Taxpayers and Taxable Businesses Using Certain Collective-Investment Contract Schemes for In-Depth Financial Sectors (“Regulation 200/2015”).Payment ProceduresTaxpayers are to be subject to final income tax for any income which is received as a result of the transfer of real estate (i.e. lands and buildings) to other parties under certain collective-investment contract schemes (“KIK”), specifically: [2]