a.

that to further encourage national economic growth in the dynamics of the global economy, it is necessary to provide government support to the housing industry sector;

b.

that to realise government support for the housing industry sector to increase people’s purchasing power, it is necessary to provide an incentive in the form of government-borne value added tax on supplies of landed houses and flat units;

c.

that based on the considerations referred to in letter a and letter b, it is necessary to enact a Minister of Finance Regulation concerning Government-Borne Value Added Tax on Supplies of Landed Houses and Flat Units for the 2023 Fiscal Year;

 

 

 

 

 

 

 

1.

Article 17 paragraph (3) of the 1945 Constitution of the Republic of Indonesia;

2.

Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (State Gazette of the Republic of Indonesia of 1983 Number 51, Supplement to the State Gazette of the Republic of Indonesia Number 3264) as amended several times, last amended by as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

3.

Law Number 17 of 2003 concerning State Finances (State Gazette of the Republic of Indonesia of 2003 Number 47, Supplement to the State Gazette of the Republic of Indonesia Number 4286);

4.

Law Number 39 of 2008 concerning State Ministries (State Gazette of the Republic of Indonesia of 2008 Number 166, Supplement to the State Gazette of the Republic of Indonesia Number 4916);

5.

Law Number 28 of 2022 concerning the State Budget for the 2023 Fiscal Year (State Gazette of the Republic of Indonesia of 2022 Number 208, Supplement to the State Gazette of the Republic of Indonesia Number 6827);

6.

Presidential Regulation Number 57 of 2020 concerning the Ministry of Finance (State Gazette of the Republic of Indonesia of 2020 Number 98);

7.

Presidential Regulation Number 130 of 2022 concerning Details of the State Budget for the 2023 Fiscal Year (State Gazette of the Republic of Indonesia of 2022 Number 215);

8.

Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2021 Number 1031) as amended by the Minister of Finance Regulation Number 141/PMK.01/2022 concerning the Amendment to the Minister of Finance Regulation Number 118/PMK.01/2021 concerning the Organisation and Work Procedures of the Ministry of Finance (Official Gazette of the Republic of Indonesia of 2022 Number 954);

9.

Minister of Finance Regulation Number 92 of 2023 concerning Mechanisms for the Implementation and Accountability for Government-Borne Taxes (Official Gazette of the Republic of Indonesia of 2023 Number 737);

 

 

 

 

 

 

 

MINISTER OF FINANCE REGULATION CONCERNING GOVERNMENT-BORNE VALUE ADDED TAX ON SUPPLIES OF LANDED HOUSES AND FLAT UNITS FOR THE 2023 FISCAL YEAR.

 

 

 

 

 

 

 

Referred to herein this Ministerial Regulation:

1.

Value Added Tax Law, hereinafter referred to as the VAT Law, is Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times, last amended by as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

2.

Value Added Tax, hereinafter abbreviated to VAT, is value added tax stipulated under the VAT Law.

3.

Taxable Person is an entrepreneur supplying taxable goods and/or supplying taxable services subject to taxes stipulated under the VAT Law.

4.

Taxable Goods are goods subject to taxes stipulated under the VAT Law.

5.

Tax Invoice is a tax collection receipt prepared by Taxable Persons supplying Taxable Goods or supplying taxable services.

6.

Selling Price is the value in money, including all costs requested or should be requested by the seller due to a supply of Taxable Goods, excluding VAT collected pursuant to the VAT Law and discounts included in the Tax Invoice.

7.

Taxable Period is a period used as the basis for a taxpayer to calculate, remit and file tax payable in a certain period stipulated under the Law concerning General Provisions and Tax Procedures and the amendments thereto.

8.

Minister is the minister who administers governmental affairs in the field of state finances.

 

 

 

 

 

 

 

(1)

VAT payable on supplies of:

 

a.

landed houses; and

 

b.

flat units,

 

that fulfil the requirements, shall be borne by the Government for the 2023 Fiscal Year.

(2)

Landed houses referred to in paragraph (1) subparagraph a are buildings in the form of residential homes or terraced houses, both multi-storey and non-storey, including residential buildings that are partly used as shops or offices.

(3)

Flat units referred to in paragraph (1) subparagraph b are flat units that function as residences.

 

 

 

 

 

 

 

(1)

Government-borne VAT payable on the supplies referred to in Article 2, is VAT on supplies occurring when:

 

a.

the sale and purchase deed is signed; or

 

b.

the sale and purchase agreement is signed,

 

in the presence of a notary and the right to use or hold turnkey landed houses or turnkey flat units is actually supplied as evidenced by the official report of handover from 1 November 2023 to 31 December 2024.

(2)

The official report of handover referred to in paragraph (1) shall at least contain:

 

a.

the name and taxpayer identification number of the seller Taxable Person;

 

b.

the name and taxpayer identification number or national identification number of the buyer;

 

c.

the date of the handover;

 

d.

the identity code of the house being handed over;

 

e.

a stamped statement that the building has been handed over; and

 

f.

the number of the official report of handover.

(3)

The official report of handover referred to in paragraph (1) must be registered in the application in the ministry that administers governmental affairs in the field of public works and public housing and/or the People’s Housing Savings Management Agency no later than the end of the month after the month the handover is carried out.

 

 

 

 

 

 

 

(1)

Landed houses or flat units referred to in Article 2 must fulfil the following requirements:

 

a.

the Selling Price amounts to a maximum of IDR5,000,000,000.00 (five billion rupiah); and

 

b.

constitute new landed houses or new flat units supplied in a turnkey condition.

(2)

New landed houses or new flat units referred to in paragraph (1) subparagraph b are landed houses or flat units that:

 

a.

have obtained a house identity code; and

 

b.

are supplied for the first time by the seller Taxable Person constructing the landed houses or flat units and no transfer has been carried out.

(3)

The house identity code referred to in paragraph (2) subparagraph a is the identity code for landed houses and flat units provided through an application in the ministry that administers governmental affairs in the field of public works and public housing and/or the People’s Housing Savings Management Agency.

(4)

If for the landed houses or flat units referred to in paragraph (1), a down payment or instalment has been paid to the seller Taxable Person before the enactment of this Ministerial Regulation, Government-borne VAT may be granted with the following provisions:

 

a.

the first down payment or instalment is paid to the seller Taxable Person no sooner than 1 September 2023;

 

b.

the provisions referred to in Article 3 are fulfilled from 1 November 2023 to 31 December 2024; and

 

c.

Government-borne VAT is granted only to VAT payable on the remaining instalments and settlement paid during the Government-borne VAT granting period pursuant to this Ministerial Regulation.

 

 

 

 

 

 

 

(1)

Government-borne VAT referred to in Article 2 is utilised for every 1 (one) individual for the acquisition of 1 (one) landed house or 1 (one) flat unit.

(2)

Individuals who have utilised the Government-borne VAT facility on supplies of houses before the enactment of this Ministerial Regulation, may utilise the Government-borne VAT facility pursuant to this Ministerial Regulation.

 

 

 

 

 

 

 

Individuals referred to in Article 5 include:

a.

Indonesian citizens who have a taxpayer identification number or national identification number; and

b.

foreign nationals who have a taxpayer identification number insofar as the statutory provisions stipulating the ownership of landed houses or flat units for foreign nationals are fulfilled.

 

 

 

 

 

 

 

(1)

Government-borne VAT referred to in Article 2 that fulfils the requirements referred to in Article 3 and Article 4 is granted to:

 

a.

supplies with the date of the official report of handover starting from 1 November 2023 to 30 June 2024, amounting to 100% (one hundred per cent) of VAT payable on a fraction of the tax base of up to IDR2,000,000,000.00 (two billion rupiah) with a maximum Selling Price of IDR5,000,000,000.00 (five billion rupiah); or

 

b.

supplies with the date of the official report of handover starting from 1 July 2024 to 31 December 2024, amounting to 50% (fifty per cent) of VAT payable on a fraction of the tax base of up to IDR2,000,000,000.00 (two billion rupiah) with a maximum Selling Price of IDR5,000,000,000.00 (five billion rupiah).

(2)

Government-borne VAT referred to in paragraph (1) is granted to VAT payable for the November 2023 Taxable Period to the December 2023 Taxable Period.

(3)

The November 2023 Taxable Period referred to in paragraph (2) is VAT payable starting from 1 November 2023 to 30 November 2023.

 

 

 

 

 

 

 

(1)

Taxable Persons supplying landed houses and/or flat units referred to in Article 2 must prepare:

 

a.

Tax Invoices pursuant to statutory provisions in the field of taxation; and

 

b.

the Government-borne VAT realisation report.

(2)

Tax Invoices referred to in paragraph (1) subparagraph a must be filled in completely and correctly, including the buyer’s identity in the form of:

 

a.

the buyer’s name; and

 

b.

the taxpayer identification number or national identification number.

(3)

Tax Invoices referred to in paragraph (1) subparagraph a include information in the form of a house identity code upon the completion of the goods name column.

(4)

Tax Invoices for supplies of landed houses or flats referred to in Article 7 paragraph (1) are prepared by issuing Tax Invoices with the following provisions:

 

a.

for supplies with official report of handover until 30 June 2024 and:

 

 

1.

Selling Price of up to IDR2,000,000,000.00 (two billion rupiah), 2 (two) Tax Invoices are prepared with transaction code 07 (zero seven) with a tax base of 50% (fifty per cent) respectively; or

 

 

2.

Selling Price of more than IDR2,000,000,000.00 (two billion rupiah), the following are prepared:

 

 

 

a)

2 (two) Tax Invoices with transaction code 07 (zero seven) with a tax base of 50% (fifty per cent) respectively for a fraction of the Selling Price of up to IDR2,000,000,000.00 (two billion rupiah) on which VAT payable is borne by the Government; and

 

 

 

b)

Tax Invoices with transaction code 01 (zero one) for a fraction of the Selling Price of more than IDR2,000,000,000.00 (two billion rupiah) on which VAT payable is not borne by the Government;

 

b.

for supplies with official report of handover from 1 July 2024 to 31 December 2024 and:

 

 

1.

Selling Price of up to IDR2,000,000,000.00 (two billion rupiah), 2 (two) Tax Invoices with the following are prepared:

 

 

 

a)

transaction code 01 (zero one) for a fraction of 50% (fifty per cent) of the Selling Price on which VAT payable does not obtain the Government-borne VAT incentive; and

 

 

 

b)

transaction code 07 (zero seven) for a fraction of 50% (fifty per cent) of the Selling Price on which VAT payable obtains the Government-borne VAT incentive;

 

 

 

or

 

 

2.

Selling Price of more than IDR2,000,000,000.00 (two billion rupiah), the following must be prepared:

 

 

 

a)

2 (two) Tax Invoices for a fraction of the Selling Price of up to IDR2,000,000,000.00 (two billion rupiah), Tax Invoices with the following shall be prepared:

 

 

 

 

1)

transaction code 01 (zero one) for a fraction of 50% (fifty per cent) of the Selling Price on which VAT payable does not obtain the Government-borne VAT incentive; and

 

 

 

 

2)

transaction code 07 (zero seven) for a fraction of 50% (fifty per cent) of the Selling Price on which VAT payable obtains the Government-borne VAT incentivs;

 

 

 

 

and

 

 

 

b)

Tax Invoices with transaction code 01 (zero one) for a fraction of the Selling Price of more than IDR2,000,000,000.00 (two billion rupiah) on which VAT payable does not obtain the Government-borne VAT incentive.

(5)

Tax Invoices referred to in paragraph (1) subparagraph a must be given the information “GOVERNMENT-BORNE VAT AS THE EXECUTION OF MOF REG. NUMBERS ... OF 2023".

(6)

If the information “GOVERNMENT-BORNE VAT AS THE EXECUTION OF MOF REG. NUMBER ... OF 2023” referred to in paragraph (5) is not yet available in the application for the preparation of Tax Invoices, Taxable Persons may update the information that can be included in Tax Invoices through the said application.

(7)

Tax Invoices referred to in paragraph (1) subparagraph a filed in the VAT returns by Taxable Persons supplying landed houses and/or flat units, constitute the realisation report on Government-borne VAT referred to in paragraph (1) subparagraph b.

(8)

The filing and amendment of VAT returns for the November 2023 Taxable Period to the December 2023 Taxable Period may be treated as the realisation report referred to in paragraph (1) subparagraph b insofar as submitted no later than 31 January 2025.

(9)

VAT payable on supplies of landed houses and flat units referred to in Article 2 is not borne by the Government if:

 

a.

the supplied object is not a landed house or flat unit as referred to in Article 2, Article 3 and Article 4;

 

b.

the first down payment or installment has been paid before 1 September 2023;

 

c.

the supply is carried out before 1 November 2023 or after 31 December 2023;

 

d.

the landed houses or flat units are transferred within a period of 1 (one) year since the supply;

 

e.

the supply does not use the Tax Invoices referred to in paragraph (2), paragraph (3), paragraph (4) and paragraph (5);

 

f.

the Taxable Person does not file the realisation report referred to in paragraph (1) subparagraph b; and/or

 

g.

the Taxable Person does not register the official report of handover referred to in Article 3 paragraph (3).

(10)

Supplies of landed houses and/or flat units referred to in paragraph (9) are subject to VAT pursuant to statutory provisions in the field of taxation. ·

(11)

Sample transactions and the preparation of Tax Invoices are listed in the Appendix which constitute an integral part of this Ministerial Regulation.

 

 

 

 

 

 

 

The head of the tax office on behalf of the Director General of Taxes may collect VAT payable pursuant to statutory provisions in the field of taxation, if data and/or information is obtained showing:

a.

the supplied object is not a landed house or flat unit referred to in Article 2, Article 3 and Article 4;

b.

more than 1 (one) unit that obtains the Government-borne VAT incentive is acquired by 1 (one) individual referred to in Article 5 paragraph (1) and has utilised the Government-borne VAT incentive for the 2023 Fiscal Year;

c.

the acquisition is not carried out by the individuals referred to in Article 6;

d.

the Taxable Period does not conform to the period of the Taxable Periods referred to in Article 7 paragraph (2);

e.

the supply does not fulfil the provisions referred to in Article 8 paragraph (2), paragraph (5) and/or paragraph (7);

f.

transfer is carried out as referred to in Article 8 paragraph (9) subparagraph d; and/or

g.

the official report of handover for supplies of landed houses and/or flat units from 1 November 2023 to 31 December 2024 are not registered in the application referred to in Article 3 paragraph (3).

 

 

 

 

 

 

 

Landed houses and/or flat units that have obtained VAT exemption facility pursuant to statutory provisions cannot utilise Government-borne VAT pursuant to this Ministerial Regulation.

 

 

 

 

 

 

 

The implementation and accountability of Government-borne tax subsidies for the 2023 Fiscal Year for VAT payable on supplies of landed houses and/or flat units shall be carried out pursuant to statutory provisions.

 

 

 

 

 

 

 

(1)

The ministry that administers governmental affairs in the field of public works and public housing and/or the People’s Housing Savings Management Agency submits data on landed houses and flat units, including data in the form of the official report of handover referred to in Article 3 and the registration of house identity codes referred to in Article 4 paragraph (3), to the Directorate General of Taxes.

(2)

The data referred to in paragraph (1) shall be submitted online or offline.

(3)

All data referred to in paragraph (1) shall be submitted no later than 29 February 2024.

 

 

 

 

 

 

 

This Ministerial Regulation shall come into force on the date of promulgation.

 

 

 

 

 

 

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

 

 

 

 

 

 

Enacted in Jakarta

on 21 November 2023
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
signed
SRI MULYANI INDRAWATI

Promulgated in Jakarta

on 21 November 2023
DIRECTOR GENERAL OF LEGISLATION  

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,
signed
ASEP N. MULYANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2023 NUMBER 917