Tax on Leasehold Resale

Mark

My understanding is that the sale of a leasehold incurs an income tax obligation of 10% of the gross amount of the lease payment (ie sale price), but best to confirm with the notary. There is no separate capital gains tax for real property.

humbleisgood

Mark Thanks for your reply ........... is it something that a Notary can advise on or is best to consult a qualified accountant , or are they both maybe suitably qualified to advise on it ...........?

Mark

humbleisgood wroteMark Thanks for your reply ........... is it something that a Notary can advise on or is best to consult a qualified accountant , or are they both maybe suitably qualified to advise on it ...........?

By law, the notary must collect and submit the relevant real estate transfer tax before signing off on a transaction, so they would be best suited to advise on the transfer taxes that would apply in any given deal.

humbleisgood

Mark .... thanks again for that information .... very helpful , thank you .............

humbleisgood

A Family member who lives in Australia leased a small plot of land ( 2 are ) in Bali about 3 years ago on a 20 x 20 year lease and then built a small one bedroom villa on it for her own personal use when she comes to Bali 3 - 4 times per year for Yoga Retreats. She is now thinking of on selling that lease ( and can do so according to the lease document ) and it appears that she will make a decent profit in doing this. The difference between what it cost her to build and rent for the last 3 years and what she will on sell it for will leave her with a profit of around $ 25,000 ( about 250 Million IDR ) ...... can anyone advise hat local taxes she may have to pay on the Capital Gain and also , a friend mentioned to her that there was also a local tax payable on resale of the leasehold , a transfer tax of some kind , she thought it was 10 % of the value of the onsold lease contract ........... can anyone shed any light on that as well please ? We will be sure to get her to use a local Notaris for the transaction , but just trying to get a bit of advance information on it as well before we do that Thank you in advance for any advice offered ............