Regional Regulation of the Province of Jakarta Capital Special Region No. 18/2010 regarding land and building title acquisition fee

GOVERNMENT REGULATIONS LAND AND BUILDING TITLE ACQUISITION FEE (Regional Regulation of the Province of Jakarta Capital Special Region Number 18 Year 2010, dated December 28,2010) BY GRACE OF GOD THE ALMIGHTY THE GOVERNOR OF THE PROVINCE OF JAKARTA CAPITAL SPECIAL REGION, Considering: a. that following the enforcement of Law Number the form of delegation of central tax to regions, namely land and building title acquisition fee, which may enhance financial capability and inde pendence of regions in financing the development and implementation of public administration in re gions; 26 28 Year 2009 regarding Regional Taxes and Lev- b. that anybody having land that has social or struc ies. the object of regional taxes is expanded in ture function contributing benefit and/or socio GOVERNMENT REGULATIONS economic status to individuals or bodies is obliged to pay tax to regions after securing a right to the said land and/or building; c. that based on the considerations as meant in let ter a and letter b, it is necessary to enact a re gional regulation regarding Land and Building Title Acquisition Fee; In view of: 1. Law Nurnuer 6 Year 1983 reyaruirly Taxatiun Geri eral Provisions and Procedures as already amend ed several times and the latest by Law Number 28 Year 2007 (Statute Book of the Republic of Indonesia Year 2007 Number 85, Supplement to Statute Book of the Republic of Indonesia Number 4740); 2. Law Number 19 Year 1997 regarding Collection of Regional Tax by Warrant (Statute Book of the Republic of Indonesia Year 1997 Number 41, Supplement to Statute Book of the Republic of Indonesia Number 3686) as already amended by Law Number 19 Year 2000 (Statute Book of the Republic of Indonesia Year 2000 Number 129, Supplement to Statute Book of the Republic of Indonesia Number 39871; 3. Law Number 21 Year 1997 regarding Land and Building Title Acquisition Fee (Statute Book of the Republic of Indonesia Year 1997 Number 44, Supplement to Statute Book of the Republic of Indonesia Number 3688) as already amended by Law Number 20 Year 2000 (Statute Book of the Republic of Indonesia Year 2000 Number 130, Supplement to Statute Book of the Republic of Indonesia Number 3988); 4. Law Number 14 Year 2002 raqardinq Tax Court (Statute Book of the Republic of Indonesia Year 7007 NIJmhpr 77. St rpplarnenr to Statute Book of the Republic of Indonesia Number 4189); 5. Law Number 17 Year 2003 regarding State Fi nance (Statute Book of the Republic of Indonesia Year 2003 Number 47, Supplement to Statute Book of the Republic of Indonesia Number 4286); 6. Law Number 1 Year 2004 regarding State Trea sury (Statute Book of the Republic of Indonesia Year 2004 Number 5, Supplement to Statute Book of the Republic of Indonesia Number 4355); 7. Law Number 10 Year L004 regarding l:.nactment of Legislation (Statute Book of the Republic of In donesia Year 2004 Number 53, Supplement to Statute Book of the Republic of Indonesia Number 4389); 8. Law Number 15 Year 2004 regarding State Fi nance Management and Accountability (Statute Book of the Republic of Indonesia Year 2004 Number 66, Supplement to Statute Book of the Republic of Indonesia Number 4400); 9. Law Number 32 Year 2004 regarding Regional Administration (Statute Book of the Republic of Indonesia Year 2004 Number 125, Supplement to Statute Book of the Republic of Indonesia Num ber 4437), as already amended several times and the latest by Law Number 12 Year 2008 (Stat ute Book of the Republic of Indonesia Year 2008 Number 59, Supplement to Statute Book of the Republic of Indonesia Number 4844); 27 GOVERNMENT REGULATJONS 10 law Numbpr 3::l YP,H 2004 rpg,Hding Financial Sharing between the Central Government and Re gional Administration (Statute Book of the Repub lic of Indonesia Year 2004 Number 126, Supple ment to Statute Book of the Republic of Indonesia Number 4438); 11. Law Number 29 Year 2007 regarding Provincial Government of Jaka rta Capital Special Region (Statute Buuk ul the Republic; ul lnduuesia Year 2007 Number 93, Supplement to Statute Book of the Republic of Indonesia Number 47441; 12. Law Number 28 Year 2009 regarding Regional I axes and Levies (Statute Book of the Republic of Indonesia Year 2009 Number 130, Supplement to Statute Book of the Republic of Indonesia Number 5049); 13. Government Regulation Number 135 Year 2000 regarding Procedures for Confiscation in the Framework of Collecting Tax By Warrant (Stat ute Book of the Republic of Indonesia Year 2000 Number 247, Supplement to Statute Book of the Republic of Indonesia Number 4049); 14. Government Regulation Number 136 Year 2000 regarding Procedures for Selling Confiscated Goods (Statute Book of the Republic of Indonesia Year 2000 Number 248, Supplement to Statute Book of the Republic of Indonesia Number 40501; 15. Government Regulation Number 137 Year 2000 regarding Procedures for Hostage Taking, Reha bilitating Reputation of Tax Bearers and Granting Compensation in the Framework of Collecting Tax by Warrant (Statute Book of the Republic of Indonesia Year 2000 Number 249, Supplement to Statute Book of the Republic of Indonesia Number 4051); 16. Government Regulation Number 65 Year 2001 regarding Regional Taxes (Statute Book of the Republic; of Indonesia Year 2001 Number 110, Supplement to Statute Book of the Republic of Indonesia Number 41 ::38); 17. Government Regulation Number 58 Year 2005 regarding Regional Finance Management (Stat ute Book of the Republic of Indonesia Year 2005 Number 140, Supplement to Statute Book of the Republic of Indonesia Number 4578); 18. Government Regulation Number 79 Year 2005 re garding Guidance for Fostering and Supervising the Implementation of Regional Administration (Statute Book of the Republic of Indonesia Year 2005 Number 165, Supplement to Statute Book of the Republic of Indonesia Number 4593); 19. Government Regulation Number 41 Year 2007 regarding Organization of Regional Apparatuses (Statute Book of the Republic of Indonesia Year 2007 Number 09, Supplement to Statute Dook of the Republic of Indonesia Number 47411; 20. Regulation of the Minister of Home Affairs Num ber 13 Year 2006 regarding Guidance for the Management of Regional Finance as already amended by Regulation of the Minister of Home Affairs Number 59 Year 2007; 21. Regulation of the Minister of Home Affairs Num ber 45 Year 2008 regarding Organizational Model of Regional Apparatuses of Jakarta Capital Spe cial Region; 28 GOVERNMENT REGULATIONS 22. Joint Regulation of the Minister of Finance and Min ister of Home Affairs Number 186/PM K,07/20 10 and Number 53 Year 2010 reqardinq Phases of Preparation for the Transfer of Land and Building Title Af:QLJisition Fee as Regional Tax; 23. Regulation of the Minister of Finance Number 147IPMK.07170 10 regard ina International Aoen cies or Representatives of International Institu tions Exempted from Land and Building Title Ac quisition Fee; 24. Rcgionol Rcgulotion Number 10 Ycor 2008 rc garding Organization of Regional Apparatuses (Regional Book of Jakarta Capital Special Region Year 2008 Number 10); 25. Regiunal RegulCltiul1 Number 2 Year 2010 legaru ing Enactment of Regional Regulation (Regional Book of Jakarta Capital Special Region Year 2010 Number 2, Supplement to Regional Book of Ja karta Capital Special Heqion Number 11; 26. Regional Regulation Number 6 Year 2010 re garding Regional Tax General Provision (Regional Book of Jakarta Capital Special Region Year 2010 Number 6, Supplement to Regional Book of Ja karta Capital Special Region Number 3); By Joint Approval of THE REGIONAL LEGISLATIVE COUNCiL OF THE PROVINCE OF JAKARTA CAPITAL SPECIAL REGION and THE GOVERNOR OF THE PROVINCE OF JAKARTA CAPITAL SPECIAL REGION DECIDES: To stipulate: THE REGIONAL REGULATION REGARDING LAND AND BUILDING TITLE ACQUISITION FEE. CHAPTER I GENERAL PROVISION Article 1 Referred to in this regional regulation as: 1. Region shall be the Province of Jakarta Capital Special Region. 2. Regional Government shall be the Governor and regional apparatuses as regional administrators. 3. Governor shall be the Head of the Province of Ja karta Capital Special Region. 4. Regional Legislative Council shall be the Regional Legislative Council of Jakarta Capital Special Re gion 5. Taxation Service shall be Taxation Service of the Province of Jakarta Capital Special Region. 6. Head of Taxation Service shall be the Head of Taxation Service of the Province of Jakarta Capi tal Special Region. 7. Regional Finance Management Board shall be the Regional Finance Management Board of the Prov ince of Jakarta Capital Special Region. 8. Head of the Regional Finance Management Board shall be the Head of the Regional Finance Man agement Board of the Province of Jakarta Capital Special Region. 9. Official shall be employee assigned to execute certain tasks in the field of regional taxation in ac cordance with the provision of legislation. 29 GOVERNMENT REGULATIONS 30 1a.Regional Office of the National Land Affairs Agen cy hereinafter called Kanwil BPN shall be Regional Office of the National Land Affairs Agency of the Province of Jakarta Capital Special Region. 11 .Head of the Regional Office of the National Land Affairs Agency shall be the Head of the Regional Office of the National Land Affairs AQenr.y of the Province of Jakarta Capital Special Region, 12,Land Affairs Office shall be Land Affairs Office in Administrative Cities/Regency in the Province of .Jakarta Capital Special Region. 13. Head of Land Affairs Office shall be Head of Land Affoirs Office in /\dministmtive Cities/Regency in the Province of Jakarta Capital Special Region. 14.Notary/Land Conveyancer hereinafter called Nota ry/PPAT shall be public official authorized to make authentic deed and other authority in accordance with the provision of legi slation. 15.Regional Regulation shall be a regulation stipu lated by the Head of Region with joint approval uf the R~giulli:ll L~l:Jisli:lliv~ Council i:l11U Gover nur , 16.Regional Tax hereinafter called Tax shall be a cornputsorv contribution to region indebted by in dividual or body, which is forceful on the basis of law and regional regulation, by securing no com pensation directly and used for regional purpose to enhance the people's welfare maximally. 17.Body shall be a group of people and/or capital that constitutes totality, whether or not undertaking business, which covers limited liability company, limited partners hi p company, other company, state-owned enterprises (BUMN), or regional ad rninistration-ownad enterprises (BUMD\ In what ever name and form, firm, partnership, pension funds, alliance, group, foundation, mass orga nization, socio political organization, or other or ganization, institutions and bodies of other form, including collective investment contract and per manent establishment. 1R I arid and Building Title Acquisition Fee shall be a tax on the acquisition of land and/or building title. 19.Acquisition of I :::lnd and/or Riliiding Title shall be a legal action or event causing the acquisition of land and/or building title by individuals or bodies 20.Land and/or Building Title shall be land title, in cluding management right, along with building thereon, as meant in land and building affairs law. 21.Regional Tax Payment Form of Land end Build ing Title Acquisition Fee hereinafter abbreviated to SSPD-BPIITB shall be regional tax payment form used to pay land and building title acquisition fee. CHAPTER II NAME OF TAX Article 2 Land and Building Title Acquisition Fee shall be collected in the name of Land and Building Title Acquisition Fee. CHAt-' fER III OBJECT AND SUBJECT OF TAX Part One Object of Tax Article 3 (1) Object of land and building title acquisition fee shall be the acouisition o~ land alldlor buildillg title. GOVERNMENT REGULATIONS (2) The acquisition of lerid and building title as meant in as meant in paragraph (1) shall cover: a. transfer of riqht because uf: 1. transaction; 2, exchange; 3. Grant; 4. Testament grant; 5. Inheritance; 6. Inclusion into other company or legal en tity; 7. Separation of right causing the transfer; 8. Appointment of buyer in auction; 9. Execution of final verdict of the judge; 10. Business merger; 11. Business consolidation; 12. Business expansion:. or 13. prize. b. granting of new right because of: 1. Continuation of the relinquishment of right; or 2. Outside the relinquishment of right. {3) The land title as meant in paragraph (ll shall be: a. property right; b. right to use land for business purpose; c. right to Use land for erecting building; d. right to use land; e. strata title to flat unit; and f. management right. (4) The tax object exempted from land and building title acquisition fee shall be objects acquired by: a. diplomat and consulate representatives on the basis of recip rocal principles; b. state for the implementation of public adminis tration and/or development for public interest; c. international agencies or representatives of in ternational agencies stipulated by regulation of the Minister of Finance with the provision that they do not undertake other business or activi ties outside the function and tesk e of the agen cies or representatives of the organizations; d. iudi viduals or bodies because of right conver sion or other legal action without change in name; e. individuals or bodies because of donation for religious or community use; and f . individuals or bodies used for worship interest. (5) t-urther provisron on the Imposition of tax on tax object acquired because of testament grant and inheritance as meant in paragraph (:L) letter a point 4 and point 5 and granting of management right as meant in paragraph (3) letter f shall be requ lated by a regulation of the governor. Part Two Tax Subject Article 4 (1) Subject of land and building title acquisition fee shall be individuals or bodies acquiring land and/or building title. (21 The subject of tax as meant in paragraph (1 ~ sub ject to obligation to pay tax shall become taxpayer according to this regional regulation. CHAPTER IV BAS\S FOR IMPOSITION, RATE AND 31 GOVERNMENT REGULATIONS 32 CALCULATION METHOD OF TAX Part One Basis tor Imposition of Tax Article 5 (1) The basis for imposition of land and building ti tie acquisition tee shall be the acquisition value of tax object. (2) The acquisition value of tax object as meant In paragraph ill, in the case of: a. transaction shall be transaction value: b. exchange shall be market value; c. grant shall be market value; d. testament grant shall be market value; e. inheritance shall be market value: f. inclusion into other company or legal entity shall be market value; g. separation of right causing the transfer shall be market value; h. transfer of right because the execution of judge verdiot shall be market value; i. granting of new right to land as continuation of the relinquishment of right shall be market value; J. granting Of new nght to land outside the relin quishment of right shall be market value; k. business merger shall be market value; I. business consolidati on shall be market value; m. business expansion shall be market value; n. prize shall be market value; and/or o. appointment of buyer in auction shall be the transaction value mentioned in account of auc tion. (3) If the acquisition value of tax object as meant in paragraph (2) letter a up to letter 0 is not ascer tained or lower than N.JOP s'tipi rlatad in the impo sition of Land and Building Tax in the acquisition year, the basis for imposition of tax shall be NJOP of Land and Building Tax. (4) in the coco of NJOP of Land and BUilding Tax as meant in paragraph (3) being not stipulated yet at the moment when tax becomes dues, NJOP ot Land and Building Tax may be based on certificate uf NJOP of Land and Building Tax. (5) Certificate of NJOP of Land and Building Tax as meant in parag rap h (41 shall be temper ar y. i6l Certificate of NJOP of Land and Building Tax as meant in paragraph (3) may be obtained from tax service office or authorized institution in accor dance with the provision ot legislation. (7) The untaxed acquisition value of tax object shall be set at Rp80,OOO,OOO.OO (eighty million rupi ah). (8) If the acquisition of right is attributed to inheri tance or testament grant received by individuals still having relations by blood and marriage in direct lineage up to one degree upward and downward with the grantor of testament grant or inheritance, including couple, the untaxed acquisition value of tax object shall be set at Rp350,OOO,OOO,OO (three hundred fifty million rupiah). (9) The untaxed acquisition value of tax object (NPOPTKP) as meant in paragraph {7) and para graph (8) may be reviewed or evaluated every year by regulation of the governor after securing approval from DPRD. GOVERNMENT REGULATIONS Part Two Tax Rate Article 6 The rate of land and building title acquisition lee :shelll be set et 5% (five percent). Part Three Calculation Method of Tax Article 7 (1) I he principal amount of land and building title ac quisition fee payable shall be counted by means of multiplying the rate as meant In Article 6 with the basis for the imposition of tax as meant in Article 5 after being su btracted by the unta xed acquisition value of tax object as meant in Article 5 paragraph (7} or paragraph (8). (2) If the acquisition value of tax object INPOP) as meant in Article 5 paragraph (2) is not ascertained or lower than NJOP used in the imposition of PBB in the acquisition year, the principal amount of BPHTB payable shall be counted by means of mul tiplying the rate as meant in Article 6 with NJOP after being subtracted by NPOPTKP as meant In Article 5 paragraph (7) or paragraph (B). CHAPTER V MOMENT AND PLACE WHERE TAX BECOMES DUE Part One Moment When Tax Becomes Due Article 8 (1} The moment when tax becomes due shall be stip ulated as follows: a. in the case of tran~<lr.tion. CIS from the signing date of deed; b. in the case of exchanoe. as from the si(]nin(] date of deed; c. in the case of grant, as from the signing date of deed; d. in the case of testament grant, oa from the signing date of deed; e. ill the case of inheritanc e, as from the dote of registration of the transfer of right to Land A f fai rs Office; f. in the case of the inclusion into other com pany or legal entity, as from the signing date of deed; g. in the case of separation ot right causing the transfer, as from the signing date of deed; h. in the case of judge verdict, as from the issu ance date of the final court verdict; I. in the case of the granting of new right to land as continuation of the relinquishment of right, as from the date of issuance of decision on the granting of right; j. in the case of the granting of new right outside the relinquishment of right, as from the date of issuance of decision on the granting of right; k. in the case of business merger, as from the signing date of deed; I. in the case of business consolidation, as from the signing date of deed; m. in the case of business expansion, as from the signing date of deed; n. in the case of prize, as from the signing date of deed; and 33 GOVERNMENT REGULATIONS 34 o . in the case of auction, as from the date of ap pointment of auction winner. (2) The ta>l rille sh~ll hn sp.ttled at the moment of the acquisition of right as meant in paragraph (1), Part Two Place Where Tax Becomes Due Article 9 The place where tax becomes due shall be the territory of the Province of Jakarta Capital Special Region. CHAPTER VI STIPULATION, SYSTEM AND PROCEDURES FOR COLLECTION Part One Sti pulation Article 10 (1) Payers of BPHTB shall be obliged to pay direct ly tax due by using Regional Tax Payment Form (SSPD). (2) SSPD as meant in paragraph (1) shall also consti tute Regional Tax Return (SPTPD). (3) SSPD as meant in paragraph (1) shall be filled clearly, truthfully and completely as well as signed by taxpayers or their proxies. (4) Further provision on model, content and proce dures for filling SSPD as meant in paragraph (3) shall be regulated by a regulation of the governor. Part Two Collection System and Procedure Article 11 (1) Stipulation of SSPD as meant in Article 10 shall refer to collection system and procedure of BPHTB. (2) The system and procedure as meant in paragraph (1) shall cover procedures for submitting the pay merit. examination, reporting collection and rc duction of SSPD-BPHTB as well as registration of deed and settlement of deed of land and/or build ing title transfer. (3) Further provision on the collection system and procedure of BPHTB as meant in paragraph (2) shall be governed by a regulation of the governor. CHAPTER VII PROVISION FOR OFFICIAL Article 12 (1) Notaries/land conveyancers may only sign deed of the transfer of land and/or building title after taxpayers give up a proof of tax pavnment. (2) Head of Office in charge of auction affairs may only sign account of auction of land and/or build ing title acquisitio n after taxpayers give up proof of tax payment. (31 Head of Kanwil BPN/Head of Land Affairs Office may only register land title or the transfer of land title after taxpayers give up proof of tax payment. Article 13 (1) Notaries/land conveyancers and heads of offices in charge of auction affairs shall report the making of deed or account of land and/or building title ac quisition to the governor in no later than the 10th of the ensuing month. GOVERNMENT REGULATIONS (21 Further provision on procedures for reporting by the official as meant in paragraph (1), shall be governed by a regulation of the governor. Article 14 (11 Land conveyancers/notaries and heads of office in charge of auction affairs violating the provision as meant in Article 12 paragraph (1} and paragraph (2} shall be subject to administrative sanction in the form of a fine amounting to Rp7,500,000.00 (seven million and five hundred thousand rupiah) for every violation. (2) Land conveyancers/notaries and heads of office in charge of state auction service vi olating the provi sion as meant in Article 13 paragraph (1), shall be subject to administrative sanction in the form of a fine amounting to Rp250,000.00 (two hundred and fifty thousand rupiah 1 per every report. (3) Heads of land affairs offices violating the provi sion as meant in Article 12 paragraph (31, shall be subject to sanction in accordance with the provi sion of legislation. CHAPTER VIII TRANSITIONAL PROVISION Article 15 (1) Following the enforcement of this regional regula tion, tax still indebted on the basis of Law Number 21 Year 1997 regarding Land and Building Title Acquisition Fee as already amended by Law Num ber 20 Year 2000 and not yet or not regulated in this regional regulation shall remain collectible for 5 (five) years as from the moment when the tax becomes due. (21 Following the enforcement of this regional regula tion, all regulations in the field of regional taxation shall remain effective in no later than one year, as long as they do no contravene and/or implement ing regulations have not been stipulated on the basis of this regional regulation. CHAPTER IX CONCLUSION Article 16 This reaion;ll rpOlll;ltion shall come into force on January 1,2011. For public cognizance, this regional regulation shall be published by placing it in Regional Book of the Province of Jakarta Capital Region. Stipulated in Jakarta On December 28,2010 THE GOVERNOR OF THE PROVINCE or JAKARTA CAPITAL SPECIAL REGION, sgd FAUZI BOWO Promulgated in Jakarta On December L9, LUlU THE REGIONAL SECRETARY OF THE PROVINCE OF JAKARTA CAPITAL SPECIAL REGION sgd FADJAR PANJAITAN NIP 195508261976011001 REGIONAL BOOK OF THE PROVINCE OF JAKARTA CAP\, AL SPECIAL REGION YEAR 20.0 NUMBER. 8 35 GOVERNMENT REGULATIONS 36 ELUCIDATiON ON REGIONAL REGULATION OF THE PROVINCE OF JAKARTA CAPITAL SPECIAL REGION NUMBER 18 YEAR 2010 ON LAND AND BUILOING TITLF ACQUSITION F=FF I. GENERAL In the framework of implementing development arid public administration affairs in the province of Jakarta Capital Special Region, funding sources play important role in ensuring the successful im plementation of development and public adminis tratlon affairs. Any of the funding sources playing important role in ensuring the implementation of development and public administration affairs in the province ot Jakarta Capital Special Region IS revenue trom the regional tax sector, given that the Province of Jakarta Capital Special Region has limited natu ral resources, in relations thereto, the potential of revenue from the regional tax sector constitutes a leading revenue. Following the enforcement of Law Number 28 Year 2009 regarding Regional Taxes and Regional Lev ies, the Province of Jakarta Capital Special Region obtains the expansion of regional tax object as a source of additional income in the implementa tion of development and other public administra tion affairs. The expansion of regional tax object governed in this law covers the expansion of the existing regional tax bases, delegating the object of central tax to become regional tax and addition of new tax objects. In relation to the collection of land and building title acquisition fee that constitutes expansion of regional tax object, land and building title acquisi tion fee constitutes the expansion of regional tax objact and central tax to become regional tax. The addition of land and building title acquisition fee is expected to he c<lr<lhlp. nf fl Milling the re gional financial need deemed insufficient so far. In relation thereto, the addition of new tax as well as the freedom in applying regional tax rate Irate discretion) as mondoted by Law Number 28 Year 2009, the provincial government of Jakarta Capital Special Region can optimize regional income in the financing of APBD parallel to enhancement of pub lic service. The granting of authority to stipulate tax rate to region is Intended to avoid high tax rate outside the provision thus adding public burden exces sively. For the purpose, the region is authorized in law to stipulate tax rate in maximum limit. On the other hand, it's intended to avoid rate competition among regions, particularly in easily mobile object, such as in other regional tax, which in due time may affect regional and state interests. In a bid to enhance the principle of accountability related to supervision over the collection of regional tax, any regional regulation must secure approval from the central government before the regulation is implemented and regions applying policies in the regional tax sector violating the provisions of high legislation will be subject to sanction in the form GOVERNMENT REGULATIONS of the delay and/or nullification of the submitted regional regulation. The ratification of this regional regulation can grant legal certainty to people and business communities in the irnpleruen t ation of regional texetion liabili ties with an expectation that public knowledge and awareness continues to increase and lax cullectur s work professionally on the basis of the principle of good governance. In relations thereto, this regional regulation rules material provision covering, among others, object and subject of tax, basis for the imposition and procedures for collecting tax, provision on tax pe riod and moment when the tax becomes due. II. ARTICLE BY ARTICLE. Article 1 and Article 2 Sufficiently clear Article 3 Paragraph tn Su fficiently clear Paragraph (21 Letter a Transfer of right is a legal action aiming at transferring land and/or building title to recipient of the transferred right on the basis of either, agree ment, commitment and other legal action. Point 1 Transaction constitutes a legal action against a reciprocal ag reement wherein one party {seller) gives lip riaht tn rl thing (land and/or buildingl to the other party (buver) and the buyer pays price (in the form of money or other payment instrument) already approved jointly to the seller as compensation and acquisition of the property right. Point 2 Exchange is a legal action wherein both par ties agree to defeaL their rigill reciprocally to a land plot and/or building. Point 3 Grant is an agreement wherein a grantor transfers his/her right to land and/or building in free of charge to recipient of the grant without withdraw ing. Point 4 Testament grant is a special inheritance stipu lation regarding the graing of land or building title to certain individual or legal entity, which is effective after the grantor of the testament grant passes away. Point 5 Heir is a person securing inherited asset as heir or non heir Point 6 Inclusion into other company or legal entity is the transfer of land/or building title from individual or body to limited liability company or legal entity as participating interest of the other limited liability com pany or legal entity. 37 GOVERNMENT REGULATIONS 38 Point 7 Separation of right causing the transfer is the transfer of part of collective right to land and/or building by individual or body to fellow collective right holdnrs Point 8 Appointment of buyer in auction is stipulation of nuotion winner by ouc tion official as contoined in auction account. Point 9 The ex ecu Liun uf judge verdict "ledn5 the transfer of right from individual or legal entity as a party to the party stipulated in the jUdge verdict. POint 10 Business merger means the merger of two business entities or more by means of preserving the existence of any of the business entities or liquidating the other merging business entity. Point 11 Business consolidation means merger of two business entities or more by means of establishing a new business entity and liquidating the merging busi ness entities. Point 12 Business expansion means division of a busi ness entity into two business entities or more by means of establishing a new business entity and transferring part of assets and liabilities to new busi ness entity without liquidating the old business en tity. Point 13 Prize means a legal action in the form of the transfer of land and/or building title by individual or body to prize recipient. Latter b Point 1 Grantinq of new right <:15 continuation of the relinquishment of right is the granting of new right to individual or legal entity from the ste te as the relin quishing of land and/or building title. Point 2 Granting of new right outside the relinquish ment of right is the granting of new right to individual or legal entity from the state or holder of the property right as the relinquishing of land and/or building title. Paragraph (3) Letter a Property right is the strongest and fullest tra ditional property right which may be owned by certain individuszals or legal entities, stipulated by the gov ernment. Letter b Right to use land for busi ness purpose is a right to exploit land controlled directly by the state in a period as stipulated by the provision of legislation in force, GOVERNMENT REGULATIONS Letter c Right to use land fo r erecting building is a right to set up and have buildings on land not belonging to the said party by the period stipulated in Law Number 5 Yei'H 1960 rp.Oi'HrlinO Ri'lsir. Rp.QlJlation of Agrarian Principles and provisions of legislation in force. Letter d Right to usc means right to use and/or col lect outcomes from land controlled by the state or land belonging to other people, granting authority and obligation stipulated in decision granted by official au tho rizod to glallt it UI ill dgreemenl with lanu owner, which is not rental agreement or land management agreement or everything as long as it does not con travene the spirit and provision of legislation in force. Letter e Strata title to flat unit is a property rig ht to unit of flat, which is individual and separated, covering collective land and/or building title wholly consti tuting an integrated totality. Flat means multi-storey building built in an environ ment divided into parts structured functionally in horizontal or vertical direction and constituting unit which can be owned or used separately, for either inhabitance or other benefits furnished with collec tive part, material and land. Letter f Management right is a right to control from the state, with the implementation authority delegat ed partly to right holder, among others: planning of land designation and use, the use of land for the ex ecution of tasks, allocation of parts of the land to the third party and/or in cooperation with the third party. Paragraph (4) Letter a Sufficiently clear Letter b Land and buildi ng used for the execution of public administration and/or development for public interest is land and/or building used for the implemen tation of public administration, eight the central gov ernment or regional government, with activity solely destined to seek protn, such as land and/or building used for government institution, state-run school, state nospita: and publiC road. Letter c International agencies or representatives of international institutions are agencies or representa tives of international institutions, either governmental or non-governmental on the basis of stipulation of the Minister of Finance. Letter d Right convention is the change of right from old right to new right according to the agrarian basic law, provision of other legislation, including recogni tion of right from the government. Example: 1. Right to Use Land For Erecting Building to become property right without change in name. 39 GOVERNMENT REGULATIONS 40 ? Fx-traditional land to become new right. Other legal action means the extension of land title without change in name Letter e Donation for religious or community use means a legal action of individual or body to separate part of their property right in the form of land and/or building title and institutionalize forever for worship interest or other public interest without compensa tion. Letter f Sufficiently clear Article 4 Sufficiently clear Article 5 Paragraph (1) dan Paragraph (21 Sufficiently clear. Paragraph (3) Example: Taxpayer A buys land and building with the acquisition value of tax object (sellinq value) amount ing to Rp80,000,000.00 (eighty million rupiah), but NJ 0 P PBB of the said object in the acquisition year is amounting to Rp95,000,OOO.00 (ninety five million rupiah), so that the acquisition value used as the ba sis for imposing BPHTB is Rp95,000,000.00 (ninety five million rupiah). Paragraph (4) up to Paragraph (6) Sufficiently clear Paragraph (7) Stipulation of NPOPTKP as much Rp 00,000 00 (eighty million rupiah] for F!very tilxpilyl'!r covers what is meant in paragraph (21 letter a, letter b , letter c, letter f , letter g, letter h, letter j, letter k, letter l, letter m, letter n and letter o. The enforcement of NPDPTKP amounting to Rp80,000,000.00 (eighty million rupiah) to land title covers property right, right to use land for business purpose, right to use land for erecting buildinq and rigtn La use. Example: On February] ,2009, WP "An purchases land In East Jakarta with the acquisition value of tax ob ject (NPOP) amounting to Rp75,000,000.00 (seventy five million rupiah) wherein the untaxed acquisition value of tax object (NPOPTKP) for the acquisition of right not attributed to inheritance or testament grant received by individual in familial relation by blood in lineage one degree upward or downward with the grantor of testament grant, including couple, is stipu lated as much as Rp80,000,OOO.00 (eighty million rupiah), given that NPOP is lower than NPOPTKP, the acquisition of the right is not subject to BPHTB. On February 1,2009, WP "B" buys land and building in East Jakarta with NPOP amounting to Rpl 00,000,000.00 (one hundred million) wherein the untaxed acquisition value of tax object (NPOPTKP) for the acquisition of right not attributed to inheritance or testament grant received by individual in familial rela tion by blood in lineage one degree upward or down ward with the grantor of testament grant, including couple, is stipulated as much as Rp80,OOO,OOO.OO GOVERNMENT REGULATIONS Paragraph (9} Article 6 Sufficiently clear. Article 7 Example: I. Taxpayer"A" purchases land and buildinq wi ttl: (Not attributed to inheritance or testament grant) given that NPOP is biqqer than NPOPTKP, the acqui sition of the right is subject to BPHTB as much as R"Rl')n,nOn,ooo.oO (six hundred million rupiah). mul tiplied by rate of BPHTB. Article 8 Paragraph (1) Letter a As from the signing date means the date when the deed of right transfer is made and signed before land conveyancers/notaries. : Rp1 ,000,000,000.00 : Rp 350,000,000.00 : Rp 650,000,000.00 : 5% x Rp650,000,000,OO Rp32,500,000.00 NPOP NPOPTKP Taxable NPOP BPHTB Payable NPOP NPOPTKP Taxable NPOP BPHTB Payable : Rp 150,000,000.00 : Rp80,000,OOO.OO (-) : Rp70,000,000.00 : 5% x Rp70,000,000.00 Rp3,500,000.00 2. Taxpayer "B" acquires land and building with: (Attributed to inheritance and testament grant) Paragraph (8) Example: On March 1,2009, WP "C" registers inheri tance In the form of land and building in West Jakarta with the acquisition value of tax object (NPOP) as much as Rp350,OOO,000.OO (three hundred million rupiah), wherein the untaxed acquisition value of tax object (NPOPTKPl for the acquisition of right attrib uted to inheritance or testament grant received by individual in familial relation by blood in lineage one degree upward or downward with the grantor of tes tament grant, including couple, is stipulated as much as Rp350,000,000.00 (three hundred million rupiah). given than NPOP is the same as NPOPTKP, the acqui sition of the right is not subject to BPHTB. On March 1,2009, WP "D" registers inheri tance in the form of land and building in West Ja karta with the acquisition value of tax object (NPOP) as much as Rp1 ,000,000,000.00 (one billion rupiah) wherein the untaxed acquisition value of tax object (NPOPTKP) for the acquisition of right attributed to inheritance or testament grant received by individu al in familial relation by blood in lineage one degree upward or downward with the grantor of testament grant, including couple, is stipulated as much as Rp350,000,000.00 (three hundred million rupiah), (eighty million rupiah), aivf-'n rhar NPOP is Rp 100,000,000.00 (one hundred million rupiah}, higher than NPOPTKP Rp80,OOO,OOO.OO (eighty million ru piah). the acquisition of the right is subject to BPTHB as much as Rp20,OOO,OOO.OO (twenty million rupiah), multiplied by rate of BPHTB. 41 Letter b up to Letter n Sufficiently clear Letter 0 GOVERNMENT REGULATIONS pleteJy alonq with the attachments thereto. Paragraph 141 Sufficiently clear 42 As frnm the date of C1rrointmpnt of auction winner is the date when auction account is signed by State Wealth and Auction Service Office (KPKNl),or other auction offices in accordance with the provision of legislation, containing among others name of auc tion winner. Paragraph (2) Sufficiently clear Article 9 Sufficiently clear Article 10 Paragraph (1) and Paragraph (21 Sufficiently clear Paragraph (31 Clearly, truthfully and completely mean as fol lows: clear, so that the writing of the requested data does not cause rmsmtarpretatron potential to inflict loss on the state and taxpayer. True, the reported data must be in accordance with the actual condition, such as the size of land and/or building and complete means the whole columns of question are filled com Article 11 Sufficiently r.IP;H Article 12 Paragraph (1} Sufficiently clear Paragraph (2) Account of auction is quotation of auction ac count signed by head of office in charge of auction service. Paragraph (3) Sufficiently clear Article 13 up to Article 16 Sufficiently clear SUPPU:MI::N I 10 RI::GIONAL ~OOK 01- I HI:: PROV INCE OF JAKARTA CAPITAL SPECIAL REGION NUMBER 15 (R)