Regulation of the Special Capital Province of Jakarta No. 16/2011 on Rural and Urban Land and Building Tax

COVER NME NT REGULATIONS RURAL AND URBAN LAND AND BUILDING TAX (Regulation of the Special Capital Province of Jakarta No. 16/2011 dated December 30, 2011) BY THE GRACE OF GOD ALMIGHTY THE GOVERNOR OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA, Considering : a. that Law No. 28/2009 on Regional Taxes and Re gional Levies stipulates that Rural and Urban Land and Building Tax becomes regional tax; b. that land and buildings give better socio-econom ic benefit and/or position to persons or bodies that receive benefits from them and therefore, it 2. Law No. 12/1985 on Land and Building Tax (Stat ute Book of 1985 No. 68, Supplement to Statute Book No. 3312) as already amended by Law No. 12/1994 (Statute Book of 1994 No. 82, Supple ment to Statute Book No. 3569); 3. Law No. 19/1997 on the Collection of Taxes with Warrant (Statute Book of 1997 No. 41, Supple ment to Statute Book No. 3686) as already amended by Law No. 19/2000 (Statute Book of 2000 No. 129, Supplement to Statute Book No. 3987); is reasonable if they are required to give part of 4. Law No.14/2002 on Tax Court (Statute Book of the benefit or profit they receive to the region 2002 No. 27, Supplement to Statute Book No. through tax; 4189); c. that based on the considerations in letters a and I 5. Law No. 17/ 2003 on State Finance (Statute b, it is necessary to stipulate Regional Regulation on Rural and Urban Land and Building Tax; In view of : 1. Law No. 6/1983 on General Provisions and Taxa tion Procedures (Statute Book of 1983 No. 49, Supplement to Statute Book No. 3262) as already several times amended the latest by Law No. 28/2007 (Statute Book of 2007 No. 85, Supple ment to Statute Book No. 4740); Book of 2003 No. 47, Supplement to Statute Book No. 4286); 6. Law No. 1/2004 on State Treasury (Statute Book of 2004 No. 5, Supplement to Statute Book No. 4355); 7. Law No.15/2004 on the Management and Ac countability of State Finance (Statute Book of 2004 No. 66, Supplement to Statute Book No. 4400); 8. Law No.32/2004 on Regional Governments (Statute Book of 2004 No. 125, Supplement 18 ' Business News 8333/11-21-2012 GOVERNMENT REGULATIONS to Statute Book No. 4437), as already several times amended the latest by Law No. 12/2008 (Statute Book of 2008 No. 59, Supplement to Statute Book No. 4844); 9. Law No. 33/2004 on the Financial Balance be tween the Central Government and Regional Gov ernments (Statute Book of 2004 No. 126, Sup plement to Statute Book No. 4438); 10. Law No. 29/2007 on the Government of the Spe cial Capital Province of Jakarta as the Capital of the Unitary State of the Republic of Indonesia (Statute Book of 2007 No. 93, Supplement to Statute Book No. 4744); 11. Law No. 28/2009 on Regional Taxes and Region al Levies (Statute Book of 2009 No. 130, Supple ment to Statute Book No. 5049); 12. Law No. 12/2011 on the Enactment of Legisla tion (Statute Book of 2011 No. 82, Supplement to Statute Book No. 5234); 13. Government Regulation No. 135/2000 on the Procedure of Seizure within the Framework of Collecting Taxes with Warrants (Statute Book of 2000 No. 247, Supplement to Statute Book No. 4049); 14. Government Regulation No. 136/ 2000 on the Procedure of Selling Confiscated Goods (Statute Book of 2000 No. 248, Supplement to Statute Book No. 4050); 15. Government Regulation No.137/2000 on the Procedure of Taking Hostages, Rehabilitation of pensation within the Framework of Collecting Taxes with Warrants (Statute Book of 2000 No. 249, Supplement to Statute Book No. 4051); 16. Government Regulation No. 58/2005 on the Man agement of Regional Finance (Statute Book of 2005 No. 140, Supplement to Statute Book No. 4578); 17. Government Regulation No. 41/2007 on the Or ganization of Regional Apparatuses (Statute Book of 2007 No. 89, Supplement to Statute Book No. 4741); 18. Government Regulation No. 91/2010 on the Types of Regional Taxes Collected Based on the Decision of the Regional Head or Paid by Taxpay ers Themselves (Statute Book of 2010 No. 153); 19. Regulation of the Home Affairs Minister No. 13/2006 on Guidance for the Management of Re gional Finance as already several times amended the latest by Regulation of the Home Affairs Min ister No. 21/2011; 20. Regulation of the Home Affairs Minister No. 45/2008 on the Organization Pattern of Regional Apparatuses of the Special Capital Province of Ja karta; 21. Regulation of the Finance Minister No. 147/ PMK.07/2010 on the Appointment of Bodies or Representatives of International Institutes as Tax Object Exempted from Land and Budding Tax; 22. Regulation of the Finance Minister No. 148/ PIV1K.07/2010 on Bodies or Representatives of Good Name of Tax Guarantors, and Giving Com- I International Institutes Exempted from Land and Business News 8333/11-21-2012 19 Regional Government. 3. Governor is the Regional Head of the Special Cap ital Province of Jakarta. Building Tax; 23. Joint Regulation of the Finance Minister and the Home Affairs Minister No. 213/PMK.0712010 and No. 58/2010 on the Phases of Preparations 4. Regional Legislative Council is the Regional Leg for the Change in Rural and Urban Land and Build- islative Council of the Special Capital Province of ing Tax into Regional Tax; Jakarta. 24. Regional Regulation No. 10/2008 on the Organi- 5. The Leadership of the Regional Legislative Coun zation of Regional Apparatuses (Regional Gazette cil is the Chairman and Deputy Chairmen of the of the Special Capital Province of Jakarta of 2008 Regional Legislative Council of the Special Capital No. 10); With the Joint Approval of THE LEGISLATIVE COUNCIL OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA and THE GOVERNOR OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA DECIDES, To stipulate : REGIONAL REGULATION ON RURAL AND URBAN LAND AND BUILDING TAX. CHAPTER I GENERAL PROVISIONS Province of Jakarta. 6. Regional Financial Management Body is the Re gional Financial Management Body of the Special Capital Province of Jakarta. 7. Head of Regional Financial Management Body is the Head of the Regional Financial Management Body of the Special Capital Province of Jakarta. 8. Tax Service Office is the Tax Service Office of the Special Capital Province of Jakarta. 9. Head of Tax Service Office is the Head of Tax Service Office of the Special Capital Province of Jakarta. 10. Official is an employee given certain tasks in the regional taxation field according to the legislation. 11. Regional Regulation is a regulation stipulated by the Regional Head with approval of the Regional Legislative Council. Article 1 12. Regional Tax, hereinafter called tax, is compulso Referred to in this Regional Regulation as : ry contribution to the region owed by individuals 1. Region is the Special Capital Province of Jakarta. or bodies and forcibly imposed according to the 2, Regional Government is the Governor and Region- law, without receiving any direct recompense and al Apparatuses as an element implementing the used in the interests of the region for the greatest 20 Business News 8333111-21-2012 benefit of the people. 13. Land and Building Tax, hereinafter abbreviated into PBB, is tax on land and/or buildings owned, controlled and/or used by individuals or bodies in the rural and urban sectors, except areas used for plantation, forestry and mining businesses. 14. Land is earth surface covering land and inland wa ters and sea in the territory of the Special Capital Province of Jakarta. 15. Building is technical construction planted or placed permanently on land and/or in inland wa ters, and/or at sea. 16. Body is a group of people and/or capital serving as a unit, either those carrying out business or those not carrying out business, covering limited liability company, limited partnership, other liabil ity companies, state-owned company (BUMN), or regional government-owned company (BUMD) under any name and in any form, firm, partner ship, cooperative, pension fund, union, associa tion, foundation, mass organization, socio-politi cal organization, or other organizations, institute or other bodies including collective investment contract and permanent business establishment. 17. Green belt, hereinafter called RTH, is ground sur face area dominated by trees tended to protect certain habitat, and/or urban facility/environment, and/or safeguard infrastructure networks and/or agricultural farming. 18. Protected green belt is part of green belt having to protect local habitat as well as to protect wider areas. 19. Nurtured green belt is part of green belt outside protected green belt for the purpose of refores tation nurtured through planting, development, maintenance or rehabilitation of vegetation whose facilities are needed and supported to function as urban ecological or social facilities according to the need and function of the reforestation. 20. Culture preserve item is a man-made item, either movable or immovable, serving as a unit or group or its parts or remainders, aged at least 50 (fifty) years, or having typical style period or style pe riod of at least 50 (fifty) years, and considered as having important value for history, science and culture, including natural items considered as having important value for history, science and culture. 21. Site is a location containing or believed to contain culture preserve item including its environment needed to safeguard it. 22. Flat is a story building built in an environment divided into functionally-structured buildings in the horizontal and vertical directions, serving as units that can be owned each, particularly homes equipped with common building and common land. 23. Strata title apartment is a high rise building with basic roof usually inhabited by people as private homes, incorporated into common property in natural characteristics that need to be preserved parts intended for use, with occupants usually 1 Business News 8333/71-21-2012 I 21 from the high income bracket, equipped with lux ury and modern facilities. 24. Sale Value of Tax Object, hereinafter abbreviat ed into NJOP, is average price obtained from a fair sales-purchase transaction and in case of no sales-purchase transaction, NJOP is set by com paring price with other object of similar type, or new acquisition price or substitute NJOP. 25. Sale Value of Taxable Tax Object, hereinafter ab breviated into NJOPKP, is sale value of tax ob ject reduced by Sale Value of Untaxed Tax Object (NJOPTKP) as the basis for the calculation of tax. 26. Tax Object Notification Form, hereinafter abbrevi ated into SPOP, is a form used by taxpayer to report data on the subject and object of rural and urban land and building tax according to the re gional taxation legislation. 27. Tax Due Notification Form, hereinafter abbreviat ed into SPPT, is a form used to notify the amount of rural and urban land and building tax due to taxpayer. CHAPTER II NAME OF TAX Article 2 With the name of Rural and Urban Land and Building Tax, tax shall be collected from the owner ship, control; and/or use of land and/or buildings. CHAPTER III (1) The objects of Rural and Urban Land and Building Tax are land and/or buildings owned, controlled and/or used by individuals or bodies, except areas used for plantation, forestry and mining business es. (2) The definition of building includes : a. path located inside a building complex such as hotel, factory and its emplacement, serving as a part of the building complex; b. toll road; c. swimming pool; d. luxury fence; e. sport center; f. dockyard, pier; g. luxury park; h. oil, water and gas holding site/refinery, oil pipe; and i. tower. j. flat. k. strata title apartment. (3) Further provisions on the classification of tax ob jects as referred to in paragraph (1) and paragraph (2) are to be provided for in a Gubernatorial Regu lation. Article 4 (1) Tax objects exempted from Rural and Urban Land Part One Tax Object Article 3 TAX OBJECT AND SUBJECT and Building Tax are those : 22 I Business News 8333/11-21-2012 a. used by the Regional Government to run gov ernment; b. used merely to serve public interests in reli gious service, social, health, educational and national cultural fields not to make profit; c. used for cemetery, archeological heritage or the like; d. serving as cultural preserve not used as resi dence/home and business activity or the like, not intended to make profit; e. serving as green belt (protected and nurtured green area), protected forest, nature preserve forest, recreational forest, national park, and state land carrying no rights; f. used by diplomatic mission and consulate un der a reciprocal principle; and g. used by body or representative of internation al institute stipulated by Regulation of the Fi nance Minister. (2) NJOPTKP is set at Rp15,000,000 (fifteen million rupiah) for each taxpayer. Part Two Tax Subject Article 5 (1) The subjects of Rural and Urban Land and Build ing Tax are individuals or bodies that really have rights to land and/or receive benefit from land, and/or own, control, and/or receive benefit from buildings. who are subject to the obligation to pay tax be come taxpayers according to this Regional Regu lation. (3) If taxpayers of tax objects are still unknown, the Head of Tax Service Office on behalf of the Gov ernor can designate the tax subjects as referred to in paragraph (1) as taxpayers. (4) The tax subjects designated as referred to in para graph (3) can clarify in writing to the Head of Tax Service Office that they are not the taxpayers of the tax objects in question. (5) If the clarification from the taxpayers as referred to in paragraph (4) is approved, the Head of Tax Service Office shall cancel the designation of tax payers as referred to in paragraph (3) no later than 1 (one) month after the clarification has been ac cepted. (6) If the clarification is not approved, the Head of Tax Service Office shall issue a decision rejecting the clarification, along with the reasons for the rejection. (7) If after the period of one month as referred to in paragraph (5) has passed the Head of Tax Service Office does not issue a decision, the clarification shall be considered as being approved. CHAPTER IV TAX TARIFFS Article 6 The tariffs of Rural and Urban Land and Build (21 The tax subjects as referred to in paragraph (1) j ing Tax are set as follows; Business News 8333/11-21-201Z 23 a. 0.01% (zero point zero one percent) for NJOP of land and/or building of less than Rp200,000,000 (two hundred million rupiah); (1) The principal of Rural and Urban Land and Build ing Tax due is calculated by multiplying the tar iffs as referred to in Article 6 by the basis for b. 0.1% (zero point one percent) for NJOP of land and/or building of Rp200,000,000 (two hundred million rupiah) up to less than Ftp 2,000,000,000. (two billion rupiah); c. 0.2% (zero point two percent) for NJOP of land and/or building of Rp2,000,000,000 (two billion rupiah) up to less than Rp10,000,000,000 (ten billion rupiah); d. 0.3% (zero point three percent) for NJOP of land and/or building of Rp10,000,000,000 (ten billion rupiah) or above. the imposition of tax as referred to in Article 7 paragraph (1) after being reduced by NJOPTKP as referred to in Article 4 paragraph (2). (2) Further provisions on the procedure of calculating PBB on flat and strata title apartment as referred to in Article 3 paragraph (2) letters j and k are to be provided for in a Gubernatorial Regulation. CHAPTER VI PERIOD, MOMENT AND PLACE OF TAX DUE Part One Period and Moment of Tax Due CHAPTER V BASIS FOR IMPOSITION AND METHOD OF CALCULATION OF TAX Part One Basis for Imposition of Tax Article 7 (1) The basis for the imposition of Rural and Urban Land and Building Tax is NJOP. (2) The NJOP as referred to in paragraph (1) is set every 1 (one) year. (3) The NJOP as referred to in paragraph (2) is set by a Gubernatorial Regulation. Article 9 (1) Tax year is a period of 1 (one) calendar year. (2) The moment of tax due follows the condition of tax object on January 1. Part Two Place of Tax Due Article 10 The place of Rural and Urban Land and Build ing Tax due is the territory of the Special Capital Prov ince of Jakarta. CHAPTER VII Part Two RECORDING OF DATA AND ASSESSMENT OF TAX Method of Calculating Tax Part One Article 8 Recording of Data 22 Business News 8333111-21-2012 Article 11 (1) The recording of data is done using Tax Object Notification Form (SPOP). (2) The SPOP as referred to in paragraph (1) shall be filled clearly, correctly and completely and signed and delivered to the Head of Tax Service Office no later than 30 (thirty) working days after the SPOP has been received by tax subjects. (3) Further provisions on the procedure of recording and reporting tax objects as referred to in para graph (1) are to be provided for in a Gubernatorial Regulation. Part One Procedure of Collection Article 13 (1) The collection of Rural and Urban Land and Build ing Tax cannot entirely be contracted. (2) Taxpayers shall pay tax due based on SPPT or SKPD stipulated by the liov01181. (3) Payment for tax due in SPPT or SKPD as referred to in paragraph (2) is made using SSPD. Part Two Procedure of Payment and Collection Article 14 Part Two (1) Tax due based on SPPT as referred to in Article Tax Assessment 12 paragraph (1) shall be settled no later than 6 Article 12 (1) Based on the SPOP as referred to in Article 11 (six) months after taxpayers have received SPPT. (2) Tax due based on SKPD as referred to in Article paragraph (1), the Governor shall issue Tax Due Notification Form (SPPT). 12 paragraph (2) that causes the amount of tax to (2) The Governor can issue Regional Tax Assessment be paid to increase shall serve as a basis for the Form (SKPD) if: collection of tax and be settled no later 1 (one) a. the SPOP as referred to in Article 11 paragraph month after the date of issuance. (2) is not conveyed and after taxpayers have (3) Based on applications from taxpayers that meet received written warning from the Governor as specified requirements, the Governor can issue stated in the written warning; approval to taxpayers to pay tax due by install b. based on the results of audit or other informa ments or postpone tax payments by imposing an tion the amount of tax due is higher than the interest of 2% (two percent) every month. amount of tax calculated based on SPOP con- (4) Tax due shall be paid to government banks, re veyed by taxpayers. gional banks,regional treasury service unit BPKD, private banks or other places of payment appoint CHAPTER VIII ed by the Governor. COLLECTION OF TAX (5) Further provisions on the procedures of making Business News 8333/11-21-2012 25 payment, paying tax due by installments, and postponing tax payment are to be provided for in a Gubernatorial Regulation. Article 15 (1) The Governor can issue STPD if SPPT and/or SKPD is not paid or is underpaid after the date of maturity. (2) STPD serves as the basis for the collection of tax. (3) The amount of tax due that is not paid or is un derpaid in STPD as referred to in paragraph (1) shall be added by administrative sanction in the form of interest as much as 2% (two percent) per month for a maximum of 15 (fifteen) months after tax has become due. (4) The amount of tax due based on STPD that is not paid on time can be collected with warrants. Article 16 Tax can be collected instantly and spontane ously without waiting for the date of maturity if a. taxpayers or tax guarantors are to leave Indonesia forever or have the intention to do so; b. taxpayers or tax guarantors transfer goods they own or control to other parties in order to stop or slash business activities carried out in Indonesia; d. business activities are to be dissolved or shut down by the Governor; and e. the goods of taxpayers or tax guarantors are con fiscated by third party or there are signs of bank ruptcy. Part Three Expired Collection of Tax Article 17 (1) The right to collect tax expires after it exceeds 5 (five) years after tax becomes due, except if taxpayers commit a criminal offense in the field of regional tax. (2) The expired collection of tax as referred to in paragraph (1) will be suspended if : a. written warning and/or warrant are issued; or b. taxpayers acknowledge tax due. (3) If written warning and/or warrant as referred to in paragraph (2) letter a are issued, the expired collection of tax starts from the date when the warrant is conveyed. (4) The direct acknowledgement of tax due as re ferred to in paragraph (2) letter b means that tax payers with their consciousness state that they still owe tax and have not settled it to the Re gional Government. c. there are signs of taxpayers or tax guarantors (5) The indirect acknowledgement of tax due as re intending to dissolve their business activities or merge or expand their business activities or trans fer business activities to other parties or change their business activities to other form; ferred to in paragraph (2) letter b, can be learned from the applications for the payment of tax due by installments or postponement of tax payment and objections filed by taxpayers. 26 Business News 8333/ 11-21-2012 Article 18 1 est of the taxpayers. (1) Tax receivables that can no longer be collected (5) If requested by the taxpayers for the purpose of because the rights to collect them have expired can be scrapped. (2) The Governor shall issue a decision scrapping the expired tax receivables as referred to in paragraph (1). (3) The procedure of scrapping expired tax receiv ables is to be provided for in a Gubernatorial Reg ulation. CHAPTER IX OBJECTION AND APPEAL Part One Objection Article 19 (1) Taxpayers can file objections with the Head of Tax Service Office to: a. Tax Due Notification Form; b. Regional Tax Assessment Form. (2) The objections are written in Indonesian language by stating clear reasons. (3) The objections shall be filed no later than 3 (three) months after the taxpayers have received the forms as referred to in paragraph (1) except if they can show that the period of time cannot be met due to force majeure. (4) The receipt of objections from the authorized of ficial of Tax Service Office or the evidence of de livery of objections by registered mail serve as filing objections, the Head of Tax Service Office shall provide matters serving as the basis for the imposition of tax in writing. (6) The filing of objections does not postpone the ob ligation to pay tax. Article 20 (1) The Head of Tax Service Office shall issue a deci sion with regard to the objections no later than 12 (twelve) months after the objections have been received. (2) Before the decision is issued the taxpayers can send additional reasons or written explanations. (3) The decision of the Head of Tax Service Office with regard to the objections can be in the form of accepting wholly or partially, rejecting or in creasing the amount of tax due. (4) If the objections of the taxpayers are rejected or partially approved, the taxpayers shall be subject to an administrative sanction in the form of fines amounting to 50% (fifty percent) of the amount of tax based on the decision on objections minus tax paid before the objections were filed. (5) If the taxpayers file objections to the assessment as referred to in Article 12 paragraph (2) letter a they shall prove that the tax assessment is not correct. (6) If after the period of time as referred to in para evidence of the receipt of objections in the inter- 1 graph (1) has passed the Head of Tax Service Business News 8333/11-21-2012 27 Office does not issue a decision, the objections shall be considered as being accepted. Part Two Appeal Article 21 (1) Taxpayers can appeal the decision on objections set by the Head of Tax Service Office only to the Tax Court. (2) The appeal as referred to in paragraph (1) shall be filed in writing in Indonesian language with clear reasons within a period of 3 (three) months since the decision on objection has been received, by enclosing a copy of the decision. (3) The appeal postpones the obligation to pay tax for 1 (one) month after the decision on appeal has been issued. Article 22 (1) If objection or appeal is approved partially or wholly, the overpaid tax shall be returned by giv ing interest recompense as much as 2% (two percent) per month for a maximum period of 24 (twenty-four) months. (2) The interest recompense as referred to in para graph (1) shall be calculated starting from the month of settlement to the issuance of Overpaid Regional Tax Assessment Form. Article 20 paragraph (4) shall nor be imposed. (4) If appeal is rejected or approved partially taxpay ers shall be subject to an administrative sanction in the form of fines amounting to 100% (a hun dred percent) of the amount of tax based on the decision on appeal minus the amount of tax be fore the objection is filed. CHAPTER X COLLECTION INCENTIVES Article 23 (1) Agencies collecting Rural and Urban Land and Building Tax can be given incentives based on certain performance. (2) The incentives as referred to in paragraph (1) are stipulated in the Regional Budget. (3) Further provisions on the procedure of providing and using the incentives as referred to in para graph (1) are to be set forth in a Gubernatorial Regulation by observing the legislation. CHAPTER XI PROVISIONS FOR OFFICIALS Article 24 (1) Officials whose posts or tasks are directly related to tax objects shall : a. submit a monthly report on all changes in the condition of tax objects to the Head of Tax (3) If taxpayers appeal the decision on objection, Service Office; an administrative sanction in the form of fines b. provide necessary information at the request amounting to 50% (fifty percent) as referred to in of the Head of Tax Service Office. 28 Business News 8333/ 11 21-2012 latigh iglAteggrnatk itir 1+ 1 '71404141411 :::::E1VERJA4LNIF 1:14.J3 1111141"e""!."1"4"1""libilifialra"6"4;;A (2) The obligation to provide information as referred to in paragraph (1) letter b also applies to other officials having to do with tax objects. (3) If the officials as referred to in paragraph (1) and paragraph (2), related to the obligation to uphold post secrecy, the obligation shall be scrapped as long as it is related to the implementation of this Regional Regulation. (4) The procedure of submitting a report and filing a request for information as referred to in paragraph (1) and paragraph (2) is to be stipulated by the Governor. Article 25 Officials who do not meet the obligation as referred to in Article 24 paragraph (1) and paragraph (2) shall be liable to sanctions according to the legis lation. Article 26 Matters that are not specifically set forth in this Regional Regulation shall be subject to provisions in Regional Regulation No. 6/2010 on General Provi sions on Regional Tax. CHAPTER XII TRANSITIONAL PROVISIONS Article 27 (1) Rural and Urban Land and Building Tax for the tax year 2012 and before shall be subject to the old legislation. (2) Fines on Rural and Urban Land and Building Tax, before this Regional Regulation is put into force, shall be regional revenue. (3) When this Regional Regulation begins to take ef fect, the existing implementation regulation in the field of Rural and Urban Land and Building Tax based on Law No. 12/1985 on Land and Building Tax, as already amended by Law No. 12/1994, shall remain valid, provided it does not contradict and has not been provided for in a new implemen tation regulation based on this Regional Regula tion. CHAPTER XIII CONCLUSION Article 28 This Regional Regulation shall come into force as from, January 1, 2013. For public cognizance, this Regional Regula tion shall be promulgated by placing it in the Regional Gazette of the Special Capital Province of Jakarta. Stipulated in Jakarta On December 30, 2011 THE GOVERNOR OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA, sgd FAUZI BOWO Promulgated in Jakarta On December 30, 2011 Business News 8333/11-21-2012 I 29 THE REGIONAL SECRETARY OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA, sgd FAJAR PANJAITAN NIP 195508261976011001 REGIONAL GAZETTE OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA OF 2011 NO. 16 ELUCIOATION Special Capital Province of Jakarta obtains the expan sion of regional tax objects as extra income. The ex pansion of regional tax objects stipulated in the Law covers the expansion of the existing regional tax bas es, the change of central tax objects into regional tax objects including Rural and Urban Land and Building Tax, and the addition of new tax objects. The presence of Rural and Urban Land and • ! Building Tax as new type of levies can hopefully meet ! regional financial needs which have not yet been ful OF filled. Therefore, the presence of new type of tax and REGIONAL REGULATION OF THE SPECIAL CAPITAL freedom to apply regional tax tariffs (discretion of tar PROVINCE OF JAKARTA iffs) as mandated by Law No. 28/2009, the Govern NO. 16/2011 ment of the Special Capital Province of Jakarta can ON optimize regional income to finance the Regional Bud RURAL ANO URBAN LANO ANO BUILOING TAX get) in line with the effort to increase public services. Rural and Urban Land and Building Tax is tax I. GENERAL imposed on individuals or bodies that receive benefit To carry out development and run govern- or comfort from land and/or buildings and therefore, ment affairs in the Special Capital Province of Jakar- it is reasonable for them to hand part of them to the ta, funding sources play an important role in ensuring region through tax payments to finance development the success of development and government, and government activities. One of the funding sources that play a quite important role in ensuring the continuity and optimi zation of development and government in the Special Capital Province of Jakarta is receipts from regional taxes, considering the Region has limited natural re sources and therefore, potential regional taxes serve as reliable revenues. With the coming into force of Law No. 28/2009 on Regional Taxes and Regional Levies, the The enactment of this Regional Regulation can give legal certainty to the public and business world in fulfilling regional tax obligation in the hope that the public's knowledge and awareness of tax will increase and tax collecting officers will work profes sionally under the principle of good governance. Hence, this Regional Regulation deals with material provisions covering Tax Objects and Sub jects, Tax Tariffs, Basis for the Imposition of Tax and 30 Business News 8333/11212012 10-C.; "ite the Procedure of Calculating Tax, provisions on tax 1 and Urban Land and Building Tax, with a value of period and moment of tax due and other provisions. Rp250,000 (two hundred and fifty thousand rupiah) or more per square meter. II. ARTICLE BY ARTICLE Article 1 and Article 2 Sufficiently clear Article 3 Paragraph (1) Referred to as "areas" are all plots of land and buildings used by plantation, forestry and min ing companies on land given plantation concession rights, land given forest concession rights and land used as mining concession areas. Paragraph (2) Letter a Sufficiently clear Letter b Referred to as "toll road" is a public road which is part of road network system and a national road in which users are required to pay tolls. Letter e Referred to as 'sport center" is a place or lo cation coming in the form of land and constituting a building used as a sport center by paying fees, such as soccer field, golf court, tennis court and the like, indoor or open Letter f Referred to as "dockyard/pier" is an onshore or offshore used for constructing ships, and pier is an offshore used to anchor ships or other activities. Letter g Referred to as "luxury park" is an open space planted with a variety of trees and flowers and equipped with other park facilities in the form of foun tain and the like, with a value of Rp200,000 (two hundred thousand) or more per square meter. Letter h Letter c Referred to as "oil, water, and gas holding Sufficiently clear site/refinery and oil pipe" is a construction used to Letter d Referred to as "luxury fence" is a construc tion or building made of cement and iron or other accommodate water, gas, oil and the like, while oil refinery is a factory processing crude oil into petro leum products and other products, and oil pipe is a pipe used to distribute oil materials from one holding materials constituting a border and object of Rural site to another. Business News 8333/11-21-2012 131 ;.:5:1411110110111.*E;y1y;iiiireith ::010.1621.1100: GC V L HI 4 ME r ' r REC It' . An DNS *341#44.(44414.0iNiVAScii.M1?:;gi:!iiiiirSAiiii§11%. Letter i Referred to as "tower" is a building which is higher than the main building, used to place feeder cable, antenna, electricity, telephone built on land or the upper part of a building. Paragraph (3) Referred to as classification of rural and urban land and building objects is the classification of land and buildings according to their sales value and used as reference to facilitate the calculation of tax due. Article 4 Paragraph (1) Letter a Sufficiently clear Letter b Referred to as "not intended to make profit" is that the tax object is used to serve public inter est, and is really used not to make profit. This is evi dent among others from the articles of incorporation of foundation/body engaged in the fields of religious service, social affairs, health, education and certain national culture. This definition includes state-owned recreational forest according to the legislation. Letter c up to Letter g Sufficiently clear Article 5 Paragraph (1) and Paragraph (2) Sufficiently cleat Paragraph (3) These provisions give authority to the Head of Tax Service Office on behalf of the Governor to designate tax subjects as taxpayers if the taxpayers of tax objects are still unclear. Example : 1. Tax subject named A utilizes or uses land and/ or building owned by other person named B not because of right based on the law nor contract so that A that uses the land and/or building is desig nated as a taxpayer. 2. Tax object is still disputed at a court so that the person or body that utilizes or uses the tax object is designated as a taxpayer. 3. Tax subject stays outside the location of tax ob ject while the authority to tend the tax object is delegated to an individual or body, so that the in dividual and/or body given power of attorney can be designated as taxpayer. The appointment of taxpayer by the Head of Tax Service Office does not serve as evidence of right ownership. Paragraph (4) up to Paragraph lel Sufficiently clear Paragraph (2) Paragraph (7) Sufficiently clear Based on provisions in this paragraph, if the 32 Business News 8333i 11 21-2012 alaigeen$11.4104 GOV ERN M E NT ISFMRTRTR:TTh Head of Tax Service Office does not issue a decision Paragraph (3) within a period of 1 (one) month after clarification has The setting of NJOP for the individual ap been received from the taxpayer, the decision designating taxpayer will be annulled itself and has the right to obtain a decision on the revocation of taxpayer Article 6 Sufficiently clear Article 7 Paragraph (1) NJOP can be set : a. by comparing prices with those of other object of the same type. This is an approach/method of setting the sale value of tax object by comparing it with other tax object of the same type which is close to the tax object and has the same function and the selling price is already known; b. New acquisition value. This is an approach/meth od of calculating the entire cost spent to acquire the tax object at the time of conducting assess ment, reduced by depreciation based on the phys ical condition of the tax object; c. Substitute sale value. This is an approach/method of setting the sale value of tax object based on the production results of the tax object. praisal of special tax object can be handed to the pub lic appraisal office or third party. Article 8 Paragraph (1) The sale value of tax objects in the form of land and/or buildings, before being multiplied by tax tariffs, must first be reduced by the sale value of un taxed tax objects as much as Rpl 5,000,000 (fifteen million rupiah). Example: 1 Taxpayer A has tax objects in the form of : Land covering 200 m2 with selling price of Rp500,000/m2 Building covering 100 m2 with selling price of Rp400,000/m2 The amount of tax due is as follows: The sale value of land : 200 x Rp500,000 = Rp 1 00,000,000 The sale value of building 100 x Rp900,000 = Rp90,000,000 The sale value of tax objects in the form of land and building = Rp190,000,000 (NJOP is less than Rp200.000.000, tariff: 0.01%) The sale value of untaxed tax object Rpl 5,000,000 Paragraph (2) The sale value of taxable land building = Rp Sufficiently clear 175,000,000 Business News 8333/11-21-2012 33 The amount of PBB due: 0.01% x Rp175,000,000 = Rp17,500 Example 2 Taxpayer B has tax objects in the form of : Land covering 500 m2 with selling price of Rp1,000,000/m2 House building covering 350 m2 with selling price of Rp1,500,000/m2. Luxury fence covering 150x2m with selling price of Rp250,000/m2 Example 3 Taxpayer C has tax objects in the form of Land covering 1,000 m2 with the selling price of Rp4, 000, 000/m2 Building covering 700m2 with the selling price of Rp2,000,000/m2. Luxury fence covering 300 x 2m with the selling price of Rp350,000./m2 Luxury park covering 200m2 with the selling price of I Rp250,000/m2 The amount of tax due is as follows: The amount of tax due is as follows : - The sale value of land :1,000 x Rp4,000,000 The sale value of land 500 x Rp900,000 = Rp4,000,000,000 Rp500,000,000 The sale value of building: 700 x Rp2,000,000 The sale value of house building : Rp 1,400,000,000 350 x Rp1,500,000 = Rp525,000,000 The sale value of luxury fence : The sale value of luxury fence : 300x2x Rp350,000 = Rp210,000,000 150x2xRp250,000 = Rp75,000,000 The sale value of luxury park : The sale value of tax objects in the form of land 200 x Rp250,000 = Rp50,000,000 and building (+) The sale value of land and building - The sale value of tax objects in the form of land Rp1,100, 000, 000 and building = Rp5,660,000,000 (NJOP is less than Rp2,000,000,000, tariff : (NJOP is less than Rp10,000,000,000, tariff : 0.1%) 0.2%) The sale value of untaxed tax object - The sale value of taxable tax objects Rp15,000,000 Rp15,000,000 (-) The sale value of taxable land and building = - The sale value of taxable land and building = Rp1,085,000,000 Rp5,645,000,000 • - The amount of PBB due : - The amount of PBB due: • 0.1% x Rp 1,085,000,000 = Rp 1,085,000 0.2% x Rp5,645,000,000 r-- Rp11,290,000 34 Business News 8333/11-21-2012 osostwititlitalgaattfti€,(01541,r9) 01(4,1114140174tpltielelneleikeielpfdpieek Example : 4 Taxpayer D has tax objects in the form of : Land covering 1,500 m2 with the selling price of Rp6,000,000/m2 Building covering 800 m2 with the selling price of Rp2,000,000/m2. Luxury fence covering 300 x 2m with the selling price of Rp350,000/m2 Luxury park covering 200m2 with the selling price of Rp250,000/m2 The amount of tax due is as follows : The sale value of land 1,500 x Rp6,000,000 Rp9,000,000,000 The sale value of budding 800 x Rp2,000,000 Rp1,600,000,000 The sale value of luxury fence : 300x2xRp350,000 = Rp210,000,000 The sale value of luxury park : 200 x Rp250,000 = Rp50,000,000 (+1 The sale value of tax objects in the form of land and building Rp10,860,000,000 (NJOP is Rp10,000,000,000 or more, tariff : 0.3%) The sale value of untaxed tax objects Rp15,000,000 (-) The sale value of taxable land and buildings =-- Rp10.845.000.000 The amount of PBB due : Paragraph (2) Sufficiently dear Article 9 Paragraph (1) The period of 1 (one) calendar year starts from January 1 to December 31 Paragraph (2) Since the tax year begins on January 1, the condition of tax objects on that date serves as a mo ment to set tax due. Example: a. Tax objects on January 1, 2013 are in the form of land and buildings. On January 20, 2013 the building caught fire, so the amount of tax due is constantly based on the condition of tax objects on January 1, 2013, namely before the buildings caught fire. b. Tax object on January 1, 2013 was in the form of land without building on it. When the recording of tax object data was conducted on July 10, 2013 there had been a building on it so the amount of tax due for 2013 remains subjected to tax based on the condition on January 1, 2013 while the new building is subject to tax starting 2014. 0.3% x Rp10,845,000,000 = 1 Article 10 Rp32,535,000 Sufficiently cleat Business News 8333/11-21 -2012 35 GQvERtvErff REGULATioNs Article 11 Paragraph (1) In recording tax object data taxpayers will be given tax object notification forms to be filled and returned to the Tax Service Office. Paragraph (2) Referred to as "clear, correct and complete" is that clear means that data written in the tax object notification form (SPOP) must be written in such a way so that they will not be misinterpreted and in the end harm the region and taxpayers themselves. Head of Tax Service Office to issue Regional Tax As sessment Form (SKPD) to taxpayers that do not meet taxation obligation as required. Letter a If taxpayers do not convey SPOP on time and after receiving written warnings they still do not con vey SPOP according to the period of time specified in the written warnings, the Head of Tax Service Office can ex officio issue regional tax assessment form and the taxpayers are liable to an administrative sanction in the form of fines amounting to 25% (twenty-five Correct means that data reported must ac- percent) of the tax principal. cord with the actual condition such as the area of land and/or building, year and price of acquisition and Letter b so on according to columns/questions in SPOP. If based on audit results or other informa ' Complete means that all the columns in SPOP tion at the Tax Service Office the amount of tax due must be filled in a complete manner. Paragraph (3) Sufficiently clear Article 12 Paragraph (1) is higher than the amount of tax in SPPT calculated based on SPOP conveyed by taxpayers, the Head of Tax Service Office will ex officio Issue regional tax ; assessment form and the taxpayers are liable to an administrative sanction in the form of fines amount ing to 25% (twenty-five percent) of the difference of tax due. Tax Due Notification Form (SPPT) is issued , jased on Tax Object Notification Form (SPOP), but Article 13 to help taxpayers SPPT can be issued based on tax object data at the Tax Service Office. Paragraph (2) Paragraph (1) Rural and Urban Land and Building Tax shall be collected by regional government apparatuses. Referred to as "the collection of land and Provisions in this paragraph authorize the building tax is banned from being contracted" means 36 Business News 8333/11-21-2012 it cannot be handed to third or private party and must - 3rd installment (December 1, 2013): be done by the regional government. 2% x Rp30,000,000 = Rp600,000 Paragraph (2) and Paragraph (3) Paragraph (4) and Paragraph (5) Sufficiently clear Sufficiently clear Article 14 Article 15 Paragraph (1) Paragraph (1) up to Paragraph (3) Example : Sufficiently clear If taxpayer received SPPT on March 1, 2013, the maturity date is August 31, 2013. Paragraph (4) If tax due is paid after the given date of matu Paragraph (2) rity, the tax is collected with a warrant based on Law Example No. 19/1997 on the Collection of Tax with Warrants If taxpayer received SKPD on March 1, 2013, as already amended by Law No. 19/2000. the maturity date is March 31, 2013. Article 16 Sufficiently clear Paragraph (3) Example: If tax due in SKPD issued on September 1, 2013 is Rp90,000,000 (ninety million rupiah), based on the decision of authorized official, there has been approval to pay tax due by installments 3 (three) times for 3 (three) consecutive months, with a fixed Article 17 Paragraph (1) The expiry of tax collection shall be set to give legal certainty about when the tax due can no longer be collected. monthly amount of Rp30,000,000, interest on each Paragraph (2) and Paragraph (3) installment is calculated as follows: Sufficiently clear 1st installment (October 1, 2013): 2% x Rp90,000,000 = Rp1,800,000 Paragraph (4) 2nd installment (November 1,2013): The direct acknowledgement of tax due is 2% x Rp60,000,000 = Rp1,200,000 that taxpayer with his/her own awareness state he/ Business News 8333/11-21-2012 37 she still owes tax and has not settled the tax due to If taxpayers cannot meet the deadline of 3 the Regional Government. (three) months due to force majeure, the Head of Tax Service Office can still consider the span of time to be Paragraph (5) extended. The indirect acknowledgement of tax due is that taxpayer with his/her own awareness state he/ Paragraph (4) up to Paragraph (6) she still owes tax and has not settled the tax due to Sufficiently clear the Regional Government. Article 20 Example : Paragraph (1) up to Paragraph (3) Taxpayer applies for installment/deferred payment. Sufficiently clear Taxpayer files an objection. Taxpayer applies for the scrap or reduction of ad- I Paragraph (4) ministrative sanction. If the objection from taxpayer is rejected or approved partially, and the taxpayer does not file an Article 18 appeal, the amount of tax based on the decision on Sufficiently clear objection reduced by the tax paid before filing the objection must be settled no later than 1 (one) month Article 19 Paragraph (1) Objections to SPPT and SKPD must be filed respectively using a separate letter of objection for each tax year. Paragraph (2) Sufficiently clear Paragraph (3) These provisions are intended to give a suffi after the decision on objection is issued, and the col lection of tax with a warrant will be done if the tax payer does not settle the tax due. In addition, the taxpayer is also liable to an administrative sanction in the form of fines amounting to 50% (fifty percent). Example: Tax assessment form of 2013 amounts to Rp100,000,000 of which Rp.60,000,000 has been paid. According to the decision on objection the amount of tax is set at Rp75,000,000. The difference dent chance to taxpayers to prepare a letter of objec- between the tax assessment and tax paid is : tion along with reasons. Rp75,000,000 — Rp60,000,000 = Rp15,000,000 38 Business News 8333/11-21-2012 GC V R I'ME NT RE CR-11 .-AT 0 "•6 Illit4tteiE;E:44%:; :401000111012e iRlii,411111 Administrative sanction : Article 22 50% x Rp15,000,000 = Rp7,500,000 Paragraph (1) up to Paragraph (3) Hence, the amount of remaining tax that must be Sufficiently clear paid is: Rp15,000,000 + Rp7,500,000 = Rp22,500,000 Paragraph (5) Sufficiently clear Paragraph (4) If appeal from taxpayer is rejected or approved partially, the amount of tax based on the decision on appeal reduced by tax paid before filing the objection must be settled no later than 1 (one) month after the Paragraph (6) decision on appeal is issued, and the collection of tax Taxpayer filed an objection to the Head of with a warrant will be done if the taxpayer does not Tax Service Office and conveyed it on March 1, settle the tax due. In addition, the taxpayer is also Ii 2013. If the Head of Tax Service Office does not able to an administrative sanction in the form of fines reply the objection of the taxpayer until the end of February 2014 the amount of tax assessment re quested by the taxpayer will be considered as being accepted. amounting to 100% (a hundred percent). Example: Tax assessment form of 201 3 is Rp100,000,000 of which Rp70,000,000 has been paid. According to the decision on appeal, the amount of tax is set at Rp90,000,000. The difference be Article 21 Paragraph (1) Appeal is a legal effort made by taxpayers or : tween tax assessment based on the decision on ap tax guarantors to a decision which can be appealed peal and tax already paid is: based on the tax law. Rp90,000,000 - Rp70,000,000 = Rp20,000,000 Tax court is a court that implement a power - Administrative sanction: of justice for taxpayers or tax guarantors seeking jus 100% x Rp20,000,000 = Rp20,000,000 tice with regard to tax disputes. ' - Hence, the amount of remaining tax that must be paid is : Paragraph (2) and Paragraph (3) Rp20,000,000 + Rp20,000,000 = Rp40,000,000 Sufficiently clear 1 Business News 8333/11-21-2012 I 39 Paragraph (2) Referred to as other officials include village head, spatial layout service official, building supervi sion and control official, land office official, and in Article 23 Paragraph (1) Referred to as tax collecting agency is a ser vice/body/institute whose main task and function is collecting taxes. Paragraph (2) The amount of incentives is based on a dis cussion between the Regional Government and the team of the Regional Legislative Council overseeing financial affairs. Paragraph (3) Sufficiently clear Article 24 heritance center official. Paragraph (3) and Paragraph (4) Sufficiently clear Article 25 Referred to as legislation includes Govern ment Regulation No. 53/2010 on Discipline of Civil Servants, and Statute Book No. 3 on Regulation on Notarial Post. Paragraph (1) Officials whose jobs are directly related to tax ob jects are: ' Article 26 up to Article 28 Land conveyancer (PPAT), notarial public and land Sufficiently clear conveyancer notarial public. Written report on a change in tax object includ ing sale purchase, grant and heritage must be con veyed to the Governor through the Head of Tax Service Office whose jurisdiction covers the loca tion of the tax objects. SUPPLEMENT TO REGIONAL GAZETTE OF THE SPECIAL CAPITAL PROVINCE OF JAKARTA NO. 29 (S) 40 I Business News 8333/11-212012