MoF Reg. iissued, Government-Borne VAT iincentiive Extended to Year-End

JAKARTA, Jitu News - The Miiniistry of Fiinance has offiiciially extended the valiidiity periiod of the government-borne (Diitanggung Pemeriintah/DTP iin iindonesiian) Value Added Tax (VAT) iincentiive by 100% on suppliies of landed houses and flats.

The extensiion iis outliined iin the Miiniister of Fiinance Regulatiion (MoF Reg.) 61/2024. Accordiing to the Miiniistry of Fiinance, the faciiliity iis granted to iincrease economiic growth through the stiimulatiion of purchasiing power iin the housiing sector.

"To accelerate the iincrease iin economiic growth referred to iin letter a, iit iis necessary to proviide an addiitiional poliicy iin the form of the government-borne VAT iincentiives or suppliies of landed houses and flat uniits from September 2024 to December 2024,” reads the consiideriing sectiion of MoF Reg. 61/2024, quoted Thursday (19/9/2024).

Government-borne VAT iis granted at 100% of VAT payable of the tax base of up to iiDR2 biilliion wiith a maxiimum selliing priice of iiDR5 biilliion. The faciiliity iis proviided from the September 2024 taxable periiod to the December 2024 taxable periiod.

Siimiilar to the former MoF Reg., the government-borne VAT faciiliity iis granted to landed houses or flats wiith a maxiimum selliing priice of iiDR5 biilliion that are new and iin a turnkey condiitiion.

A new landed house or a flat uniit iis one that has obtaiined a house iidentiity code and iis fiirst suppliied by the seller taxable person (Pengusaha Kena Pajak/PKP iin iindonesiia). The house iidentiity code iis proviided through an appliicatiion proviided by the Miiniistry of Publiik Works and Publiic Housiing (Pekerjaan Umum dan Perumahan Rakyat/PUPR iin iindonesiian) and/or the People’s Housiing Saviings Management Agency (Badan Pengelola Tabungan Perumahan Rakyat/BP Tapera iin iindonesiian).

iindiiviiduals entiitled to utiiliise the government-borne VAT faciiliity iinclude iindonesiian ciitiizens who have a natiional iidentiifiicatiion number (Nomor iinduk Kependudukan/NiiK iin iindonesiian) or a Taxpayer iidentiifiicatiion Number (TiiN or Nomor Pokok Wajiib Pajak/NPWP iin iindonesiian) and foreiign natiionals who have a TiiN iinsofar as they comply wiith statutory laws and regulatiions stiipulatiing home ownershiip for foreiign natiionals.

Please note that landed houses or flats that have receiived the VAT faciiliitiies under the former MoF Reg. cannot utiiliise the government-borne VAT iincentiive under MoF Reg. 61/2024. (SAP)