Understanding Exemption of Levy on Acquisition of Land and Building Rights (BPHTB) in DKI Jakarta

Get information from IGNOS on the exemption of BPHTB in the DKI Jakarta area, including the conditions and application process.

1. BPHTB exemption can be granted for the first-time acquisition of rights, either due to the transfer of rights or the granting of new rights.
2. The object that can be exempted from BPHTB must be a landed house, with a maximum price of Rp2,000,000,000.-.
3. BPHTB exemption only applies to individuals.
4. Application for BPHTB exemption is submitted via ebphtb.jakarta.go.id.

Levy on Acquisition of Land and Building Rights (Bea Perolehan Hak Atas Tanah dan Bangunan “BPHTB”) is a tax on the acquisition of land rights and/or building, which is designated as regional government treasury. The BPHTB tariff is determined by the regional government, but may not exceed 5% of the acquisition value of the tax object (Nilai Perolehan Objek Pajak “NPOP”) after deducting the acquisition value of the non-taxable tax object.

On 28 August 2023, the Regional Government of DKI Jakarta enacted the Governor Regulation of DKI Jakarta No. 23 of 2023 on Exemption of BPHTB for First-Time Property Acquisition with NPOP up to Certain Value. This article will elaborate the conditions and applications of BPHTB exemption based on the above Governor regulation.

BPHTB exemption is given at 100%, or in other words the BPHTB rate charged is Rp0,-. However, this policy only applies if the following conditions are fulfilled:

1. first-time acquisition of rights;
2. acquisition of landed houses;
3. maximum transaction value or the value of NPOP is Rp2,000,000,000.-;
4. the applicant is individual.

First-time acquisition of rights includes:

1. transfer of rights, among others sale and purchase, grant, grant testament, and/or inheritance;
2. granting new rights.

The BPHTB exemption can also be granted even though the first-time acquisition of rights is obtained by more than one individual (for example due to inheritance).