Government considers to remove the tax on the purchase of luxury homes to encourage the growth of the property business. Currently, the purchase of luxury homes is taxed in the form of Article 22 Income Tax (PPh) and Sales Tax on Luxury Goods (PPnBM).
The plan to provide incentives was intended to make the purchase price of luxury homes cheaper. To that end, the government is reviewing the revision of Minister of Finance Regulation Number 90 Year 2015 concerning Certain Corporate Taxpayers as Income Tax Collectors from Buyers on Sales of Very Luxurious Items and PMK Number 35 of 2017 concerning Types of Luxury Taxable Goods Other Than Motorized Vehicles Subject to Sales Tax on Luxury Goods.
In the provisions of decree released in 2015, the tax object is the sale of a house with a selling price of more than Rp5 billion or a building area of more than 400 square meters and an apartment with a selling price of more than Rp5 billion or a building area of more than 150 square meters.