I have waited a long time, it is a sweet gift of the real estate sector of Jokowi

Jakarta, CNBC Indonesia – President Joko Widodo (Jokowi) brings fresh air to the domestic real estate sector by providing a mix of tax incentives. With that, it is not impossible presale or presale goods for residential homes will increase.

Jokowi's different combinations of tax incentives revealed after limited meeting with cabinet ministers on the topic of talks on decisive progress on investment, exports and fiscal policy Wednesday (06/19 / 2019).

Finance Minister Sri Mulyani stressed that the decision to provide various incentives to the real estate sector was directly under the head of state. Jokowi, said Sri Mulyani, wanted a policy that was enters the game.

"The president has asked us to provide more facilities that are not just instruments, but mostly whether or not he can walk on the ground," said Sri Mulyani.

Some policies issued for the real estate sector, among others, include an increase in the value-added tax (VAT) limit for single-family homes based on their respective regions.

The non-taxable VAT limit applicable to single-family homes is governed by Regulation No. 113 / PMK.03 / 2014 of the Minister of Finance. Most likely, there will be a revision to clbadify the limit not subject to regional VAT.

In addition, the State Treasurer will reduce from 5% to 1% the rate of income tax provided by Article 22 for luxury housing. The validation of PPh land sales will also be simplified by the government.

Do not stop there, luxury homes under 30 billion rupees are exempt from luxury goods sales tax (PPnBM). Previously, the limit was between Rs 5 billion and Rs 10 billion.

This is in line with the publication of PMK 86 / PMK.10 / 2019. In the regulation, the list of types of taxable products clbadified as luxury goods in addition to motor vehicles submitted to the PPNBM at the rate of 20%.

For example, dwellings with a selling price of 30 billion rupees will be taxed on luxury goods. Of course, this regulation is very profitable for residential real estate development companies.

This is because the PMnBM was previously regulated by PMK No. 35 / PMK.010 / 2017, which included a luxury occupation with a sale price of Rp 20 billion.

"It's for all areas of the property to expand and improve," Mulyani said.

(bag)