Zero BPHTB for Certain Properties in Jakarta

In support of the government’s third-chapter economic policy, the Governor of the Special Region of Jakarta(“Governor”)has finally issued Regulation No. 193 of 2016 on 100% Duty Exemptions on the Acquisition of Land and Building Rights Due to Sale and Purchase Activities and First-Time Land-Right Entitlement and/or 0% Duty Impositions on the Acquisition of Land and Building Rights Due to Inheritance or Grants with Testaments for Properties with a Maximum Tax Object Sale Value of IDR 2 billion(“Regulation 193/2016”). [1] In essence, this long-awaited regulation aims to hasten the certification process for land-and-building rights by setting out the legal basis as well as guidelines for the waiving of the obligation to pay duty on the acquisition of any land-and-building rights (bea perolehan hak atas tanah dan bangunan–“BPHTB”) for any land and/or buildings for which the maximum tax-object sale value (nilai jual objek pajak–“NJOP”) is IDR 2 billion. [2] These guidelines encompass the following areas: