Procedure for Registration, Report and Data Collection on Objects of Land and Building Tax

In connection with the transfer of authority to collect and manage Land and Building Tax (‘PBB’) in Rural Areas and Cities to the Regional Governments, the authority of the Directorate General of Taxes (‘DGT’) in relation to PBB is to manage PBB for Plantation, Forestry, Oil & Gas Mining, Mining for Geothermal and Mineral/Coal Mining and other sectors. On 17 May 2021, the Minister of Finance of the Republic of Indonesia stipulated Minister of Finance Regulation No. 48/PMK.03/2021 (“PMK-48”) regarding Procedure for Registration, Reporting and Data Collection on Objects of Land and Building Tax for the above sectors.

In the previous MoF regulation, No. 254/PMK.03/2014, it is stated that the Tax Office will send a Tax Object Notification Letter (SPOP) to Tax Subject or Taxpayer, which must be completed and returned to the Tax Office. A Tax Subject or Taxpayer may register a Tax Object Number (NPOP) without waiting for the issuance of a SPOP by the Tax Office. The Tax Office may perform examination and request clarification if there is a difference between the results of the examination by the Tax Office and the SPOP from the Tax Subject or Taxpayer, to be corrected. The Tax Office will then determine the amount of the NJOP (assessed property value).

Meanwhile, in PMK-48, each Taxpayer for the abovementioned business sectors must register Tax Objects that are not yet registered in the DGT’s tax administration system through the Tax Office no later than 1 (one) month after the subjective requirements are fulfilled, to be provided with a Land and Building Tax Registration Notification Letter (‘SKT PBB’), which has been determined, e.g. the date of the Production Sharing Contract (‘PSC’) signed by the Government and Contractor of the PSC for a Tax Object of the Oil & Gas Mining Sector.

The registration is done by submitting an application electronically or in writing through the DGT website or other channel determined by the DGT. The application form should be accompanied with supporting documents of the Taxpayer and documents of the Tax Object, e.g. for a Tax Object of the Oil and Gas Mining Sector this is the cooperation contract signed by the Government and the PSC Contractor.

In the event that a Taxpayer does not register, the Head of the Tax Office will issue a SKT PBB ex officio based on audit or administrative verification within three days after the issuance of the SKT PBB.

Further, the Taxpayer must submit reporting on the Tax Object which has been registered using the electronic SPOP submitted by the DGT to the Taxpayer through the DGT website, each fiscal year.

Changes of data or revocation of a SKT PBB can be conducted based on the Taxpayer’s request or based on authority ex officio by the Head of the Tax Office.

The DGT is authorized to conduct data collection on registered Tax Objects for mapping through office data collection or field data collection.

PMK-48 is effective from 16 July 2021.

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