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Indonesia: Indonesia cuts property tax in bid to boost home sales
Indonesia: Indonesia cuts property tax in bid to boost home sales
Friday, 12 August 2016 – Indonesia is cutting in half a tax on home sales from September, according to a presidential regulation, a move that should help the country?s property sector.
The sellers of homes will be subject to a final tax of 2.5% of the transaction price, instead of the current 5%, based to the regulation signed by President Joko Widodo on Aug. 8.
For purchases of homes smaller than 36 square meters, the rate will be only 1 percent. The regulation said this is ?to give protection for citizens with low income?.
Ken Dwijugiasteadi, head of Indonesia?s tax office, told Reuters on Friday the measure is ?to support the property sector and to help aid purchasing power because one of the people?s primary need is to own a house?.?Read More?