New Value Added Tax Borne by the Government for certain Houses and Apartments for Fiscal Year 2022

On 2 February 2022, the Minister of Finance (“MoF”) issued a new regulation No. 6/PMK.010/2022 regarding the Value Added Tax (“VAT”) on the Delivery of Houses and Apartments borne by the Government for Fiscal Year 2022 (“PMK-6/2022”).

The major issues set in force in this PMK-6/2022 are as follows:

1. The rate of VAT borne by the Government:
   

   No.	VAT rate	Maximum Sales Price
   1.	50%	IDR 2,000,000,000
   2.	25%	more than IDR 2,000,000,000 up to IDR 5,000,000,000

2. Requirements that must be met:
   • Applicable for a new landed house or a new apartment unit delivered in a condition ready for occupancy
   • The delivery occurs when the deed of sale and purchase is signed or the sale and purchase agreement is signed, in the presence of a notary and a real transfer of rights is made to use or control a ready-to-live-in landed house or apartment unit ready for habitation. This is evidenced by the minutes of the handover from 1 January 2022 to 30 September 2022.

PMK-6/2022 became effective on 2 February 2022.