Provisions on PBB Deductions Simplified

The Ministry of Finance (“Ministry”) has just issued Regulation No. 82/PMK.03/2017 on the Granting of Land-and-Building Tax Deductions (“Regulation 82/2017”) with the aim of simplifying procedures whereby taxpayers can secure Land-and-Building Tax (Pajak Bumi dan Bangunan– “PBB”) deductions.With this goal in mind, Regulation 82/2017 essentially redefines matters pertaining to the requirements which have to be met, as well as to the submission of applications for the securing for PBB deductions.Prior to the issuance of Regulation 82/2017, these matters were regulated under Ministry Regulation No. 110/PMK.03/2009 (“Regulation 110/2009”) on the Granting of Land-and-Building Tax Deductions, as amended by Regulation No. 82/PMK.03/2013 .Requirements for PBB DeductionsPursuant to Regulation 82/2017, PBB deductions can now be granted to taxpayers under two conditions: [1]