– With regard to land and buildings, you must be familiar with two types of terms, namely Land and Building Tax (PBB) and Land/Building Rights Acquisition Fees (BPHTB). It should be known, there are differences between PBB and BPHTB.

First, Land and Building Tax or PBB is a levy on existing land and buildings because of profit and/or socio-economic position for a person or entity that has rights over it, or obtains profits based on it. Meanwhile, BPHTB is a tax object that is imposed because there is an acquisition of land and/or building rights. For more details, see the difference between PBB and BPHTB below!

  • The differences between PBB and BPHTB1. Basic Legal Rules of the United Nations and BPHTB Laws
  • PBB and BPHTB rates1. How to Calculate PBB2. How to calculate BPHTB
  • How to Pay PBB
  • How to Pay BPHTB

The difference between PBB and BPHTB

The differences between PBB and BPHTB are clear from their definitions. PBB is a tax for owning and or controlling and or benefiting from land and or buildings. While BPHTB is a duty or tax that must be paid for obtaining rights to land and or buildings.

Because PBB is material in nature, the amount of the tariff is determined from the condition of the existing land object or building. That is why, in terms of its nature, PBB is a tax that is material in nature, namely the amount of tax owed is influenced by the origin of the condition of the object, namely land and/or buildings.

Not all land and building objects can be subject to PBB, there are also tax objects that cannot be subject to PBB. However, the tax object must meet the exclusive criteria listed in Law Number 12 of 1994 concerning Land and Building Tax. As for those included in the earth objects in the PBB include rice fields, fields, gardens, land, mine yards. Meanwhile, building objects in PBB include residential buildings, business buildings, high-rise buildings, shopping centers, luxury fences, swimming pools, and toll roads.

Unlike the PBB, more specifically, BPHTB is a type of tax that is imposed when buying a house or other property. BPHTB is imposed on individuals or entities that obtain rights to land and/or buildings, the acquisition of rights to land or buildings can also be interpreted that each person or entity has more value in terms of additional or acquisition of rights. This is a deferred charge to the buyer.

However, BPHTB is not a tax. If the tax is paid earlier than when it is payable, while BPHTB is a fee/levy made when conducting transactions, especially land and/or buildings that are certified, then before the transaction is carried out or before the deed of sale and purchase is signed, the BPHTB must be paid.

Even though they are different, it turns out that the two can also be related because if an individual or entity obtains rights to land and or buildings, they can be appointed as Land and Building Taxpayers.

1. Legal Basis for the United Nations and BPHTB Laws

The difference between PBB and BPHTB is basically clear when referring to several laws in Indonesia. Specifically for the United Nations, applicable laws include:

  • Law (UU) No. 12 of 1994 concerning Amendments to Law (UU) No. 12 of 1985 related to Land and Building Tax (PBB) which regulates all about the collection of Land and Building Tax (PBB).
  • Law (UU) No. 28 of 2009 concerning Regional Taxes and Levies which explains: Whereas district governments or city governments have the authority to collect Land and Building Tax (PBB) in the rural and urban sectors (PBB-P2). That the government or the central government has authority over the Mining, Forestry and Plantation sectors (PBB-P3).

Meanwhile, the legal basis governing BPHTB is regulated in Law no. 21 of 1997 and its changes in Law no. 20 of 2000. This law stipulates that the only party authorized to collect fees is the district/city government. Previously the collection was carried out by the central government.

The BPHTB tariff levy is not only imposed on individuals, but transactions on behalf of bodies and organizations are also subject to this fee. So basically, every transaction of acquiring land and/or building rights, either by individuals or by business entities/organizations, there will be an obligation to pay duties.

PBB and BPHTB rates

The basis for the imposition of taxes on PBB can be called the Selling Value of Tax Objects (NJOP) and is calculated based on the average price or market price at the time of the sale and purchase transaction. The basis for the imposition of this levy is determined by the Minister of Finance (Menkeu). However, each region has a different NJOP due to the influence of several stipulation bases for land and building objects. Things that influence are the materials used in the building, Engineering Layout, Environmental Conditions, Utilization, and Designation.

Meanwhile, the total tariff from BPHTB itself reaches 5 percent of the selling price minus the Acquisition Value of Non-Taxable Tax Objects (NPOPTKP). As previously mentioned, BPHTB is not a sale and purchase tax and the two are different from one another. There are some basic differences between the two.

First, tax payments occur earlier than when they are owed. For example, a buyer of certified land must pay the BPHTB before the transaction is carried out or before the deed is drawn up and signed. This also applies to stamp duty. Whoever buys stamp duty, it means he has paid stamp duty, even though it has not occurred when the tax becomes payable.

Second, the frequency of payment of duty owed can be made incidentally or repeatedly and is not bound by time, for example, buying or paying for stamp duty can be done at any time. The same goes for paying the outstanding BPHTB. This is of course different from taxes, which must be paid according to a predetermined time.

That's how to pay PBB that you need to know. When you have your own house, you also have to pay the land and building tax. So , if you're looking for housing in the Denpasar area, here's the list below Rp. 1 billion!

1. How to Calculate PBB

There are two stages in calculating Land and Building Tax (PBB). What are the stages in question?

  • Determining the Selling Value of Taxable Objects (NJOP)

The definition of the Sales Value of Tax Objects (NJOP) itself is the amount of the price for both land and building objects or it can also be said as the price for land and building properties. Before calculating how much Land and Building Tax (PBB) must be paid, the first step is to find out the price of the land and building.

  • Determining the Taxable Selling Value (NJKP)

Taxable Sales Value (NJKP) is a basis for calculating Land and Building Tax (PBB) as the sale value of an object that will be included in the calculation of the tax payable. The following is the percentage provisions of the Taxable Selling Value (NJKP) that have been determined by the government based on the Decree of the Minister of Finance. The basis for calculating Land and Building Tax is 40 percent. Then 40 percent for mining, and 40 percent for forestry. As for other tax objects such as rural and urban areas, this can be seen from the Sales Value of Tax Objects (NJOP), which is 40 percent for a value of more than Rp. 1 billion, while 20 percent for a value of less than Rp. 1 billion.

2. How to calculate BPHTB

Before you calculate the selling amount of Land and Building Rights Acquisition Fees, you must find out about the amount of the Non-Taxable Tax Object Value or NPOPTKP. Find out this value at the relevant service in the local government where you bought a house or you can search on the official website. If you already know the amount of NPOPTKP, the following is the formula for calculating the duty:

Tax Rate 5% x Basic Tax Imposition (NPOP – NPOPTKP)

For details, the following is an illustrative example of how to calculate the amount of duty rates to be paid. For example, if you buy land for IDR 200 million in Jakarta, this will be the value of the Tax Object Acquisition Value (NPOP). The NPOPTKP value of the land you buy is IDR 80 million. So, the calculation of the BPHTB rate is:

NPOP: Rp200.000.000

NPOPTKP: Rp80.000.000 5% x (Rp200.000.000 – Rp80.000.000)

5% x Rp120.000.000 = Rp6.000.000.

So, the BPHTB rate that must be paid is IDR 6,000,000

How to Pay PBB

The easier and closer, maybe that's the right sentence regarding how to pay for PBB. Currently, there are two ways to pay PBB, namely online and offline . Both of these methods have different procedures in the payment process. Here's the full explanation..

  • Online Payment Method

To improve services to taxpayers, PBB payments can also be made through electronic payment centers provided by banks such as ATMs/ tellers / other facilities. Paying PBB online provides an advantage for you because it is not tied to working days and bank operating hours for paying PBB. Then also avoid queues at the bank when paying PBB.

The steps for paying PBB through an ATM are as follows:

  • Select the payment menu
  • Select the tax menu
  • Enter the Tax Object Number
  • Enter the year of the PBB payment
  • Then information about the tax object, invoice, and name will appear
  • Check carefully the identity and the principal amount of tax to be paid
  • If it is appropriate, press the pay button

When making land and building payments online , there is one thing you need to remember. That is, don't throw away proof of payment because this is valid proof of payment of Land and Building Tax through an ATM.

  • How to Pay PBB Offline

If you choose the offline or in-person PBB payment method, payments can be made through a bank or post office and gito where payment is listed on the SPPT (Letter of Taxes Payable) or an officially appointed Village/Village PBB collection officer. Then, when you want to pay for PBB to the two places above, the taxpayer only needs to show the PBB SPPT and as proof of payment the taxpayer will receive a Deposit Receipt (STTS).

  • If the relevant annual SPPT has not been received by the taxpayer, as long as STTS is available at the place of payment, the taxpayer can pay PBB by showing the previous annual SPPT. In the event that the taxpayer pays or pays off the PBB through a collection officer, a Temporary Receipt (TTS) will be given as proof of payment.
  • Furthermore, the collection officer is included in the daily receipt list (DPH PBB) and deposited at a predetermined place of payment. After that the collection officer deposits the PBB revenue from the taxpayer to the designated Bank or KPG where payment is made, as stated in the SPPT/SKP/STP with use DPH in conjunction with provisions.

How to Pay BPHTB

When you buy a house and have to pay for the BPHTB, it doesn't mean you just have to come to the official office and pay for it. But there are still several documents and letters that must be prepared so that payments can run smoothly. There are 2 types of requirements, namely in buying and selling transactions and also inheritance fees. The following are the documents that need to be completed when paying for BPHTB:

  • Regional Tax Deposit Letter (SSPD) BPHTB
  • Photocopy of Tax Returns Payable (SPPT) PBB for the year concerned
  • Photocopy of the taxpayer's KTP
  • Photocopy of Deposit Receipt Letter (STTS)/ATM receipt for PBB payment for the last 5 years
  • Photocopy of proof of land ownership such as certificates, deed of sale and purchase (AJB), letter C or girik

If you obtain land or a house for grant, inheritance, or sale of inheritance, then the BPHTB conditions are as follows:

  • SSPD BPHTB
  • Photocopy of SPPT PBB for the year concerned
  • Photocopy of the taxpayer's Identity Card (KTP).
  • Photocopy of STTS/ATM receipt (Automated Teller Machine) proof of PBB payments for the last 5 years
  • Photocopy of proof of land ownership, such as a certificate, deed of sale and purchase, letter C, or girik.
  • Photocopy of Certificate of Inheritance or Deed of Grant
  • Copy of Family Card (KK)