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CAN FOREIGNER ( NON-INDONESIAN CITIZEN ) OWN A PROPERTY IN JAKARTA / INDONESIA ?
As per the presidential decree ________, a foreigner can purchase and own a property in Indonesia. Unfortunately, this decree has not been passed into an actual law due to the incomplete technicalities. It is still uncertain as to when this law will be passed.
However, this does not discourage foreigners to purchase property by using the following alternatives:
   1. Purchase under a local company.
   2. Purchase under a nominee.
   3. Purchase under an option agreement.

PROPERTY TAXATION
Rental
Below are various scenarios of tax implication in a rental agreement:

Landlord=Personal Tenant =Corporate Property=Individual House
Tax = PPN 10% on base rent * PPH 10% on base rent (usually withheld by corporate company / withholding tax)
Landlord = Personal Tenant=Corporate Property=Apartment
Tax = PPN 10% on base rent *
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)
Landlord=Personal Tenant=Personal Property=Individual House
Tax = PPN 10% on base rent *
PPH 10% on base rent
Landlord=Personal Tenant=Personal Property=Apartment
Tax = PPN 10% on base rent *
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)
Landlord=Corporate Tenant=Corporate Property=Individual House
Tax = PPN 10% on base rent
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)
Landlord=Corporate Tenant=Corporate Property=Apartment
Tax = PPN 10% on base rent
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)
Landlord=Corporate Tenant=Personal Property=Individual House
Tax = PPN 10% on base rent
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)
Landlord=Corporate Tenant=Personal Property=Apartment
Tax = PPN 10% on base rent *
PPH 10% on base rent
PPN 4% on service charge
PPN 10% on service charge (withheld)

LAND & BULDING PROPERTY TAX ( PBB )
This specific tax is paid on annual basis and subject to negotiation as to who will be paying. This tax amounts to __% from the market property value which is set by the government.

SALE MARKET

PPN 10% from the base sale price
PPNBM 20% from the base sale price. This is applicable for apartment in excess of 150 m2 in size or sale price of Rp. 3,000,000 / m2.
BPHTB (Bea Peralihan Hak atas Tanah dan Bangunan ) 5% from the base sale price.Tax on name transfer deed. The first Rp. 50,000,000 is free from BPHTB.
The seller will also have to pay 5% Final Tax.

Notarial fee is also required during the AJB ( Akte Jual Beli ) – Sale & Purchase Deed. The amount of fee varies depending on the notary.
Stamp Duty amounting to Rp. 6,000 / legalized document.
PPN and PPNBM is only applicable for first-time sale and no longer required when the property is re-sold.

SERVICE CHARGE
Also commonly known as maintenance charge. This usually applies in apartments and rarely in individual housing. Service charge covers for common area cleaning, maintenance, building exterior.

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