Government Regulation No. 40 Year 2016 dated 17 October 2016
INCOME TAX ON REVENUE FROM TRANSFER OF REAL ESTATE UNDER PARTICULAR COLLECTIVE INVESTMENT CONTRACT SCHEME
Revenue received by taxpayer from transfer of real estate to special purpose vehicle (SPC) or collective investment contract (KIK) under particular KIK scheme are subject to final income tax.
Particular KIK scheme is investment KIK scheme in form of real estate investment trust (DIRE) with or without SPC.
Income tax rate for such transfer is 0.5% from gross transfer amount which consist of:
- Total amount received by taxpayer from SPC or KIK for non related party transaction
- Total amount should be received by taxpayer from SPC or KIK for related party transaction
For non related party transactions:
- Such Income tax payable should be paid by taxpayer before legal documents are signed by official.
- Official can only sign legal documents when income tax already paid by taxpayer and below requirements are settled by taxpayer.
- Taxpayer who transfer the real estate must submit notification letter to head of tax office regarding such transaction attached with following documents:
- Copy of effective statement on DIRE registration issued and legalized by Financial Service Authority (OJK)
- Statement from OJK which stated taxpayer transfer the real estate to SPC or KIK under particular KIK scheme
- Stamped duty statement which stated taxpayer transfer the real estate to SPC or KIK under particular KIK scheme
- Copy of tax payment form (SSP) on revenue from real estate transfer
- Obtain tax clearance from tax office
4. Official who sign legal documents must report to DGT regarding this transaction.
Further procedures for this transaction will be issued by Minister of Finance.
This regulation will be effective on promulgation date.