Thread: About taxes

Hi Leeloo,

1. Yes that´s all correct, everybody does it and your notaris would keep the difference in his pocket if you´d do it differently but there´s more to know: notaris ask you to pay 5 % taxes of the sales amount and just transfer 5 % of the NJOP (REAL value of the property on the tax paper) to government, it´s not easy to find a notaris who´d agree on using NJOP if you are a bule, they are really pissed if somebody asked, that´s why they driving all Mercedes , my wife asked a female notaris in Kuta if she´d agree, the answer was a clear NO ("we´re not on the market here, there are rules blabla) and after we found another notaris who was less greedy we saved all alot of money.

2. true (but not reall understand the part with the "30 % of the added value", if you sell your property you pay 5 % and than get most of the time a discount from the kabupaten "tax free" NJOPTKP (in Jembrana for example 5 million & Nusa Dua, Badung last time 20 million), your nominee will not pay the yearly tax for you so you must take care & keep the paid bills together to prove it, make also sure that there is a NIB number on the land´s certificate you want to purchase (most of the older certificates don´t have 1)

Do it the indo way, your friend knows what´s going on!

Regards Marc

Hi Marc,

Thank you very much for your answer, that's very kind of you.
1) So the NJOP is the value written on the SPPT, right? I wish I had known that before, it's gonna be tough to negotiate with my Notary to pay the 5% on the NJOP now since I haven't discussed that with him before....
2) Concerning the "30% of the added value" : I thought that when you sell a property you have to pay a tax on the capital gains (other than the 5 % selling tax) but I don't know exactly how much. For instance, according to this website ; Capital Gains Taxes (%) in Indonesia | Global Property Guide or this one Indonesia Taxes and Costs-Rental income tax is high in Indonesia | Global Property Guide, it's 20% of the capital gain, but my friend told me it's 30% and when I look at your email it seems there's no such thing, only the 5%... That's why I would like to know exactly what tax(es) I'll have to pay when I sell my property....


Thanks again for your kindness and have a very good week end ahead!

Cheers

Leeloo

hi leeloo...

1.) yes right SPPT
2.) ok now i know what you mean but that´s not that much normally, 20 % sounds very expensive, there´s a raise if the tax value in an area getting valued higher by government, for example if you buy an old house in Nusa Dua with an old SPPT they "upgrade" or "update" it during the transaction....but they were always ok so far thumbs up!

Regards Marc

But how can you pay taxes if you do not have a tax number, because you do not live here? But... you do have an "own" new villa? Building tax has to be paid but how and by who????

news4me - A foreigner never owns anything. The best you can do is to possess a new villa for a fixed period of time - usually 25 years (with perhaps an option to renew subject to approval). So what you have that you think are ownership papers are actually a well-disguised lease.

Underneath all the layers of companies and paperwork used to "sell" you the villa sits the underlying real owner - an Indonesian citizen. Legally s/he is responsible for paying the taxes because he is the owner. The question you should ask is "out of whose pocket comes the money to pay for the taxes." In your pile of paperwork, you may be required to pay a fee equal to the taxes, but somebody else will use that money to actually pay the tax.

Follow your money and the taxes may or may not get paid. But that is not your responsibility any more than if you were renting an apartment.