Background
Ministry of Finance has issued the Minister of Finance Regulation Number 90/PMK.03/2015 on the Amendment of Minister of Finance Regulation Number 253/PMK.03/2008 on the Certain Corporate Taxpayer as the Income Tax Collector from the Buyer on the Selling of Goods Classified as Very Luxurious (“PMK 90/2015”) to amend the Minister of Finance Regulation Number 253/PMK.03/2008 on the Certain Corporate Taxpayer as the Income Tax Collector from the Buyer on the Selling of Goods Classified as Very Luxurious (“PMK 253/2008”). PMK 90/2015 shall come into effect on 30 May 2015.
General Provisions
Tax Collector as referred to in Article 22 paragraph (1) point c on the Law Number 7 of 1983 on the Income Tax as amended several times in which last amended by the Law Number 36 of 2008 is the Certain Corporate Taxpayer which carry out the selling of the goods classified as very luxurious. Pursuant to PMK 235/2008, the amount of Income Tax which must be collected by the Tax Collector are 5% (five percent) from the selling price of the goods classified as very luxurious, excluding the Value Added Tax and Sales Tax on Luxurious Goods (PPN and PPnBM).
Changes on the Transactions Value of Houses and Apartments Classified as Very Luxurious
As stipulated in the PMK 253/2008, house and land with the selling price of more than Rp. 10.000.000.000,00 (ten billion Rupiah) and the building area of more than 500 sqm (five hundred square meters), and the apartment, condominium, and its kind with the selling price of more than Rp. 10.000.000.000,00 (ten billion Rupiah) and/or the building area of more than 400 sqm (four hundred square meters), are classified as the very luxurious goods in which the Income Tax of selling of the goods must be collected by Corporate Taxpayer. Nevertheless, the said provisions has been amended by PMK 90/2015 as follows:
a. the selling price of the house and land are more than Rp. 5.000.000.000,00 (five billion Rupiah) or the building area are more than 400 sqm (four hundred square meters); and
b. the selling price of the apartment, condominium, and its kind are more than Rp. 5.000.000.000,00 (five billion Rupiah)or the building area are more than 150 sqm (one hundred fifty square meters).
Exemption
One thing to note is that the purchasing of the goods classified as very luxurious by non-tax subject is exempted from the collection of Income Tax. Such exemption are made without the Certificate of Income Tax Exemption.
