Update on Minister of Finance Regulation Regarding the Classification of Tax Objects and the Procedure in Determining the Sales Value of Taxable Objects for Land and Building Tax
- February 20, 2023
- Posted by: Administrator
- Category: Tax News
The Minister of Finance (“MoF”) has issued Regulation No 234/PMK.03/2022 (“PMK-234”) regarding Amendments to MoF Regulation No. 186/PMK.03/2019 (“PMK-186”) concerning “Classification of Tax Objects and the Procedure in Determining the Sales Value of Taxable Objects for Land and Building Tax (“LABT”)”. PMK-234 became effective on 1 January 2023.
The following are the key changes between PMK-186 and PMK-234:
| Description | PMK-186 | PMK-234 |
| Definition of Tax Appraiser | Tax Appraisers consist of: Functional Tax Appraiser, Assistant Functional Tax Appraiser, Tax Appraiser Officer, LABT Functional Tax Appraiser, and LABT Tax Appraiser. |
Tax Appraisers are civil servants within the Directorate General of Taxes who are given duties, authorities, and responsibilities to carry out assessment which consist of Tax Appraiser Functional Official, Assistant Tax Appraiser Functional Official, and Tax Appraiser Officer
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Additional Information on Taxable Object |
Other Sector LABT objects consist of land and/or building other than: ·Plantation sector ·Forestry sector ·Oil and Gas Mining sector ·Coal and Mineral Mining sector within the Unitary State of the Republic of Indonesia. |
Other Sector LABT objects consist of land and/or buildings located in the territorial waters and jurisdiction as regulated in the laws concerning maritime affairs other than: ·Plantation sector ·Forestry sector ·Oil and Gas Mining sector ·Coal and Mineral Mining sector within the Unitary State of the Republic of Indonesia. |
| Exclusion of Tax Object | Waters used for toll roads are included as land and building tax objects | Waters used for toll roads are excluded as land and building tax objects |
| Issuance of Tax Assessment Letter | Only the Directorate General of Taxes (“DGT”) can issue LABT Assessment Letters | The Directorate General of Taxes may delegate the issuance of LABT Assessment Letters through the Heads of Tax Offices |
| Field Assessment By DGT | N/A | DGT may conduct a field assessment based on the LABT Return |