Bali Expat Forum - Bali Travel Forum

Seems to be a veritable minefield

is it 4% / 10% on the cost of construction or the estimated value of the product at the end of construction?

ct

It's based on cost of construction.

according to austrindo law office / under section 4[2] tax act[luxury building tax] we have been charged with building the house .we did not build it just renovated it.the extra ppn tax is for commercial buildings or rental houses , villas. we do not rent either. the advice from this law firm is to pay the taxes or 1/ house can be seized and there is also a prison sentence attached. we are now looking for a person to negotiate with tax office.we are currently trying to get an extension so we can sort it out in december when we come to bali. for those members who are in tourist trade all airlines from australia to bali are fully booked for christmas and new year. so that's some good news.we are trying to trace the original owner of house renate dotzhauer. i think she has returned to europe. the second owner did not build as we did not build. if we can prove that she was the builder and all taxes have been paid, we might have a better chance.

So at the 4% tax based on construction cost for owner build that would mean the tax office has costed the renovation at 25*12,500=A$312,500.

That's a lot of bricks.

if we can prove that she was the builder and all taxes have been paid, we might have a better chance

Is there a point at which an extensive renovation becomes the equivalent of a new construction?

I would still like to see the document. Maybe we could build up a library of these documents online so people can have a better idea what to expect.

Hi Fisherman.... thanks for your post on this subject it has been great, I think you are going down the right track if you take the Lawyers advice and try to negotiate the Tax down and settle this with the Tax office, in the end you will not loose . sounds like you have a great property and you have got it at the best time and it has already increased in Value.

Then with that out of the way you can relax and focus on finding the fishing spots

wow, they're really hitting you up, but as inAdelaide said, thanks for sharing.. this is really interesting.. A decent negotiator will be able to get that right down (or at least shouldbe able to).. best of luck and please keep us posted..

ct

Please don't leave the story there. What happened in the last month??

No update from fisherman. No document online.

Gee, I wonder what could have happened....

I wonder. Could he have been scared by Jim's drunken ravings and rantings.

hi, i am now in bali.have documents with me. do not know how to scan.anyone wanting to see or meet. you can contact our manager nyoman on 081805658012.bought my phone from oz. wont work this year. our house address is jln danau batur number 10 kulibul kawan, tibubeneng. we are still looking for good lawyer. we used eddy nyoman winarta to buy and check house so we obviously need some one else and a negotiator. does any one know good tax lawyer. plus any one know of fishing charter/ for game fish would be great. did not bring laptop so am using local cafe. will check back tomorrow.

Fisherman

Try our attorney Peter Johnson. He is an Australian lawyer living full time in Indonesia. We have been using him since 2002 for our land purchase and other legal matters.

JALAN BAY PASS NGURAH RAI NO. 2001

SIMPANG SIUR

KUTA - BALI

INDONESIA

PHONE : 62 361 759 722

FAX : 62 361 759 605

hi, we are now back in oz.saw 3 lawyers, who all told us the same thing. this is a new law 2007. the tax collectors are going to each village and checking house details with the headman.if a non indonesian name comes up then they view the house.in our case outside the wall & gates, they then assess the price and hence the tax. if by some chance you have an anglicized name i.e from flores you only need to provide proof of indonesian citizenship. so far the collectors have only audited a small area.we have been told this is a once only tax. but no written guarantees.on our second last day we got hold of a tax negotiator.he wont charge unless he can get the rate down by less than half. then his fee will be 10million .we should know within the next few weeks what our fee will be. this bloke has already negotiated some taxes in mengwi. we spoke to the owners and he is genuine. our lawyers all said pay or lose the house. we got letters from neighbours,headman, local police to say that house had never been rented.if it works out ok for us we will be happy to give name of negotiator. just email us or fax us in oz 61244764252. will get back straight away. it was interesting to note that the taxi drivers from canggu had heard about the tax and asked about it every time we took a taxi.they all said how lucky they were to be indonesian. we tried the discrimination angle and that does not work.

Hmm ok fisherman you have definately scared me off ever buying there ha ha! Back to just holidaying there again.

Fisherman
It would be interesting to know the result your tax negotiator achieves as and when you when you finalise your settlement.
In advance, can you share his name & contact details?
Thanks

we have finally sorted the tax.used a negotiator accountant /tax, his name is gede arthika. we ended up paying less than a third. if any one requires contact details email me . have new email address hardwarenarooma@bigpond.com.