Property Tax

Markit

mugwump

It is calculated based upon what a bule is supposed to pay.........simple. The local desa chief will tell you.

Markit

It is calculated based upon what a bule is supposed to pay.........simple. The local desa chief will tell you.[/QUOTE]Not the most enlightening post you written, there, Muggy

sakumabali

Indonesian mills grind slowly but....happens to me a couple of times too. In case you r a contractor u suppose to pay 10 % of the building expenses. Private villa (build yourself) around 5 %. that's all theoretical. No Indo would pay sth close to that. They have "categories" (basic, standard, luxus etc); be nice to the guy and he will overlook your big pool and marble floor...in the end of the day all is here negotiable, in this case u can bring your building expenses down to like 1.5-2 million / m2. if your house have f.e 200 m2 you might just pay 10-15 million :)

mugwump

Not the most enlightening post you written, there, Muggy[/QUOTE]Ok. Will attempt to be more enlightening. Realizing that different regencies have different rules about taxes, it can be different elsewhere. In Jembrana when an original parcel of land is purchased all taxes are paid. In Gianyar they are paid annually, and you make sure to have a Balinese show up to talk to officialdom in your stead or you are certain to get financially reamed. Still local taxes are paid in the banjar, and are modest depending on the lavishness of your abode.Back to Jembrana where taxes are still paid annually to the local desa/banjar in accordance with what they happen to think they can get. I have 56 are with beachfront and large home and pay 1 juta per annum, and don't bitch.

Markit

I wasn't aware that the different regencies had differing taxes/collections. Could people make life any more complicated?

matsaleh

I think sakumabali is referring to Construction tax which is different to Land and Building tax. Check this page. It will give you a rough idea what you will be up for. [url=http://bali.angloinfo.com/information/money/general-taxes/property-taxes/]Property Taxes in Indonesia - AngloINFO Bali, in Bali (Indonesia)[/url]

sakumabali

thx matsaleh yep I meant construction tax but "property tax on a building completed in 2010" sounded like Markit meant this

Fred2

We paid 4 juta this year double from last year as our house is classed as city and not village land anymore. The value is government set base on land value.

Markit

We paid 4 juta this year double from last year as our house is classed as city and not village land anymore. The value is government set base on land value.[/QUOTE]How was that calculated and by whom?

Fred2

I will dig out the paper work tomorrow.

Markit

Many thanks but I hope you have better to do on Christmas day - Boxing day will be just fine. Merry Christmas all.

Fred2

Land and building tax (Pajak Bumi dan Bangunan/PBB) is a type of property tax chargeable on all land and/or buildings, unless exempted. The negative list setting out land and buildings not subject to PBB includes those: Used simply for public interest in the areas of religious and social affairs, health, education and national culture, and not for the purpose of making a profit;Used as a cemetery, ancient heritage site or similar;Constituting protected forests, natural reserve forests, tourism forests, national parks, grazing land controlled by a village, and state land with no right imposed on it;Used by a diplomatic representative, based on the reciprocal treatment principle;Used by an agency or representative of an international organization, as determined by the MoF.PBB rate is specifed at 0.5%. The actual tax due on a particular object is calculated by applying the tax rate to thetaxable sale value (Nilai Jual Kena Pajak/NJKP) of the object. NJKP is a predetermined proportion of the sale value of thetax object (Nilai Jual Objek Pajak/NJOP) of a particular land and building. NJKP is currently stipulated to be either 20% (for NJOP up to Rp. 1 billion) or 40% (for NJOP above Rp. 1 billion). The government can increase the NJKP rate by up to 100. of the NJOP. As a result, the effective PBB at present is either 0.1% or 0.2% of the NJOP.NJOPs are to be determined by the DGT on behalf of the MoF and may be updated every one to three years dependingon the economic development of the region in question. In accordance with MoF guidelines, NJOPs should take into account the market value of the land and building in the region. Where a piece of land and building is used for business purposes in the areas of plantation, forestry, mining, or breeding, the NJOP should also take into account the investment standard applicable on these.PBB is payable annually following an official assessment issued by the DGT. The assessment process is typically initiated by the DGT submitting a Tax Object Notification Form (Surat Pemberitahuan Objek Pajak/SPOP) to the taxpayer in question.The form must be filled out by the taxpayer and returned to the DGT within 30 days. Using the completed SPOP and taking into account the NJOP-related information, the DGT issues a Tax Due Notification Letter (Surat Pemberitahuan Pajak Terhutang/SPPT), presenting the official tax assessment made by the DGT. The taxpayer in question is required to pay the tax due within six months of receipt of the SPPT.Incorrectly filing in a SPOP, late fling of the completed SPOP, or ignoring the SPOP can expose a taxpayer to a potential penalty of 25% of the PBB due.An individual or an organization that owns a right to a piece of land, and/or takes benefits there from, and/or owns, controls, and/or takes benefits from a building can by law be regarded as the PBB taxpayer for that piece of land and/or building. Each taxpayer is entitled to a non-taxable NJOP, which at present set at max Rp.25,000,000. The MoF is authorized by law to make adjustments to the non-taxable NJOP.My Tax Bill PBBLand NJOP 5,625,000 per M2building NJOP 1,200,000 per m2my non tax NJOP is only 15,000,000PBB yang Terhutang = 0.2% of the NJOPAt the bottom it give you payment detailsBank Jatim is the government bank for land tax, the receipt from the bank give all your details of the owner.I understand that farm land can be paid every 5-10 years. The tax must be up to date before any sale.

Markit

I thank you for that Fred 2 but I'm afraid I probably have more money than sense/patience and just paid what was asked (40J on 2 houses on 2000 sq meters) and felt my self relatively lucky. I console myself with the thought that at home (wherever that might be) it would be a shed-load more. I'm assured that it is a one-off payment?

Fred2

This is high, is your assessment for a number of years??? It should be all set out amount of land and valuation per m2, then size of building and valuation per m2. Then next line should be tax free amount Then x by 0.1 or 0.2% which will give the amount you oweI will try and scan my notice.There are people out there that can negotiate the bill on your behalf.

Markit

Fred it was about 5 years late and there were the possibility of penalties tied to a further delay in payment. I did have someone negotiating on my behalf - a lawyer for taxation problems and she says she did a great job - big surprise that?!

davita

I'm now being asked to pay the property tax on a building completed in 2010 under one IMB and also on an adjacent property completed in 2013 under a separate IMB. Does anyone have a clue how this should be calculated and/or where I can inform myself about this?Many thanks in advance. Markit[/QUOTE]For some reason it appears I have clicked 'dislike' on this post. I have no recollection of doing that and the timing is odd as I was asleep, preparing to rise at 5:00 am, for my flight back to Bali....and I was using another computer in Jakarta.In fact, I don't recall clicking 'dislike' for a very long time, if ever, and prefer not using that feature as I'd rather make a comment.So sorry Markit...either it was some finger-trouble on my part or someone knows how to mess with the system. I'll click 'like' to negate the other 'dislike'...as I have no issue with the post at all.