Tax rebates on land and buildings
Aditya Suharmoko , The Jakarta Post , JAKARTA | Sat, 07/11/2009 11:27 AM | Business
Certain taxpayers will enjoy rebates for land and building tax (PBB) as part of a government effort to ease the financial burdens on low-income people, the Finance Ministry said in a statement Friday.
The new ministry’s regulation, effective as of Aug. 17, will give PBB tax rebates to war veterans, farmers, retirees and low-income workers. The amount of rebates will depend on the types of taxpayers.
War veterans, or wives or husbands of deceased veterans, will get rebates of 75 percent.
Up to 75 percent rebates will be provided for taxpayers having farms, cattle breeding or fisheries that yield little; taxpayers whose only income is from pension funds; taxpayers with little income and unable to pay PBB; also taxpayers with little income while the value of their land or buildings rises due to changes in the neighborhood or development.
Taxpayers whose building or land is destroyed by natural disasters, will get 100 percent rebates.
To get such rebates, taxpayers must file a request to their district tax offices that can be processed individually or as part of a group request, based on their PBB claims.
War veterans, or spouses of the deceased veterans, can request PBB rebates collectively before and after receiving tax request letters. The amount of tax liability should not exceed Rp 500 million (US$49,500).
War veterans should submit the request at the latest by Jan. 10 of the tax year, represented by the Indonesian Veterans Legion (LVRI), to district tax offices.
For taxpayers with farms, cattle breeding, fisheries or plantations; taxpayers with sole income coming from pension funds; taxpayers
with little income and unable to pay PBB; and taxpayers with little income whose land of building value rose because of development, tax liability should not exceed Rp 200,000.
For taxpayers suffering losses because of natural disasters or other incidents such as fire or crop disease the ceiling amount of tax debt is Rp 500 million, the ministry said.
For individual applicants, the amount of tax debt should not be more than Rp 2 million to be
eligible for PBB rebates. The request should be submitted within three months of receiving tax liability letters or since suffering a disaster or incident.
The regulation also states that heads of district tax offices will have the authority to grant PBB rebates if the amount of tax liability is less than Rp 500 million.
If the tax liability is between Rp 500 million and Rp 1.5 billion, the authority rests with the head of the special regional tax office.
Only the director general of taxation, representing the finance minister, can grant rebates for tax liabilities exceeding Rp 1.5 billion.
Aditya Suharmoko , The Jakarta Post , JAKARTA | Sat, 07/11/2009 11:27 AM | Business
Certain taxpayers will enjoy rebates for land and building tax (PBB) as part of a government effort to ease the financial burdens on low-income people, the Finance Ministry said in a statement Friday.
The new ministry’s regulation, effective as of Aug. 17, will give PBB tax rebates to war veterans, farmers, retirees and low-income workers. The amount of rebates will depend on the types of taxpayers.
War veterans, or wives or husbands of deceased veterans, will get rebates of 75 percent.
Up to 75 percent rebates will be provided for taxpayers having farms, cattle breeding or fisheries that yield little; taxpayers whose only income is from pension funds; taxpayers with little income and unable to pay PBB; also taxpayers with little income while the value of their land or buildings rises due to changes in the neighborhood or development.
Taxpayers whose building or land is destroyed by natural disasters, will get 100 percent rebates.
To get such rebates, taxpayers must file a request to their district tax offices that can be processed individually or as part of a group request, based on their PBB claims.
War veterans, or spouses of the deceased veterans, can request PBB rebates collectively before and after receiving tax request letters. The amount of tax liability should not exceed Rp 500 million (US$49,500).
War veterans should submit the request at the latest by Jan. 10 of the tax year, represented by the Indonesian Veterans Legion (LVRI), to district tax offices.
For taxpayers with farms, cattle breeding, fisheries or plantations; taxpayers with sole income coming from pension funds; taxpayers
with little income and unable to pay PBB; and taxpayers with little income whose land of building value rose because of development, tax liability should not exceed Rp 200,000.
For taxpayers suffering losses because of natural disasters or other incidents such as fire or crop disease the ceiling amount of tax debt is Rp 500 million, the ministry said.
For individual applicants, the amount of tax debt should not be more than Rp 2 million to be
eligible for PBB rebates. The request should be submitted within three months of receiving tax liability letters or since suffering a disaster or incident.
The regulation also states that heads of district tax offices will have the authority to grant PBB rebates if the amount of tax liability is less than Rp 500 million.
If the tax liability is between Rp 500 million and Rp 1.5 billion, the authority rests with the head of the special regional tax office.
Only the director general of taxation, representing the finance minister, can grant rebates for tax liabilities exceeding Rp 1.5 billion.
