Finance Minister Sri Mulyani Announces Tax Relief Measures for Property Owners

Siap –Finance Minister Sri Mulyani Indrawati has implemented tax reduction measures for land and building (PBB) in various sectors, as outlined in Financial Minister Regulation (PMK) Number 129 of 2023. 

The regulation aims to provide legal certainty and enhance administrative governance, ease, and service in granting property tax reductions.

According to Article 2 of the regulation, the minister has the authority to grant tax reductions to taxpayers obligated to pay taxes, making them taxpayers under the Land and Building Tax Law.

The reduction can be requested by taxpayers or granted by default.

PMK 129/2023 delegates the authority to grant property tax reductions to the Director General of Taxation. 

The reduction is applicable under specific conditions related to the taxpayer and when the property faces natural disasters or other extraordinary circumstances.

The specific conditions include ownership, control, or utilization of the property by taxpayers experiencing difficulties in settling property tax obligations. 

Taxpayers facing commercial losses and liquidity challenges for two consecutive years fall into this category.

The sectors eligible for tax relief, as per PMK 129/2023, include plantation, forestry, 

oil and gas mining, geothermal mining, mineral or coal mining, and other sectors excluding capture fisheries and fish farming.

The property tax reduction can reach a maximum of 75% of the property tax value, or up to 100% for outstanding property taxes.

This reduction applies to property taxes specified in the Tax Due Notice or Land and Building Tax Decree, including the tax amount, the difference in Land and Building Tax due, and administrative fines.