On 15 December 2023, the Director General of Taxes issued Regulation PER-8/PJ/2023 which deals with the exemption of Income Tax (PPh) payment on income from the transfer or sale and purchase of land/building and its amendments. This exemption can be obtained through the issuance of an Income Tax Exemption Certificate, which is obtained by submitting an application for each transfer of rights to land and/or building or agreement to bind the sale and purchase of land and/or building and its amendments. The exemption letter is issued if the individual or entity meets the requirements described in Article 4 paragraph (3).

Business entities that obtain income from the transfer of rights to land and/or buildings or agreements to bind the sale and purchase of land and/or buildings and their changes in Special Economic Zones receive a Corporate Income Tax reduction facility of 100% of the amount of Corporate Income Tax payable for ten Tax Years and 50% of the amount of Corporate Income Tax payable for two Tax Years after the end of the 10-year period.

The Corporate Income Tax reduction facility is provided through the issuance of a Certificate of Income Tax Exemption on the income received or obtained by the Business Entity from the transfer of rights to land and/or buildings or sale and purchase agreements on land and/or buildings and their amendments in the Special Economic Zones.

For the sale or transfer of residential houses or residences classified as very luxurious by Corporate Taxpayers, Income Tax is still payable on the sale of goods classified as very luxurious, except for the sale of residential houses or residences classified as very luxurious in the Tourism Special Economic Zone. The facility of exemption from Income Tax collection is provided through the issuance of a Certificate of Exemption from Income Tax collection on the sale of residential houses or dwellings classified as very luxurious in the Tourism Special Economic Zone.

This regulation became effective on 15 December 2023.