Self-Payment of Article 4(2) Final Individual Income Tax

If you are a land/building owner, what you have to do is:

  1. If you transact with a Non-Withholding Taxpayer, you must pay Income Tax on the income you earn at 10% of the gross rent of your land and/or building yourself;
  2. Pay Article 4(2) Final Income Tax by first creating a billing code with MAP Code 411128 and Payment Type Code 403. The payment must be made no later than the 15th day of the following month;

File Article 4(2) Final Income Tax using e-SPT application through the Directorate General of Taxes (DGT) electronic services or an Application Service Provider [List of Application Service Providers] no later than the 20th day of the following month.

Transfer of property such as land and/or building (Government Regulation No. 34 of 2016)

The object of Article 4(2) Final Income Tax on a transfer of land and/or building is the income from:

  1. Transfer of property such as land and/or building; or
  2. Amendment to the land and/or building conditional sale and purchase agreement.

Taxpayer not carrying out transfer of land and/or building as their main business

If you are not a Taxpayer carrying out transfer of land and/or building as your main business, what you have to do is:

  1. Pay Article 4(2) Income Tax at 2.5% (two point five percent) of the gross amount of the transfer of your land and/or building by first creating a billing code with MAP Code 411128 and Payment Type Code 402. The payment must be made prior to the deed, decision, agreement, or minutes of auction of the transfer of land and/or building being signed by an authorized officer;
  2. File an application for formal verification of proof of compliance with obligation to pay Income Tax to the Tax Office (KPP) whose working area covers the location of land and/or building (in accordance with PER-26/PJ/2018);
  3. The application is prepared using the application letter in Appendix I to PER-26/PJ/2018 and enclosed with:
  1. Tax Payment Slip (SSP) or other administrative instruments equivalent to Tax Payment Slip;
  2. A statement letter of the transfer of land and/or building or the land and/or building conditional sale and purchase agreement and its amendment prepared using the form in Appendix II to PER-26/PJ/2018;
  3. A copy of all proofs of sales (transfer slips, sales invoices, and/or cash receipts);
  4. A copy of the latest Notice of Land and Building Tax Due;
  5. A copy of identity card (KTP) for buyer and seller who are Indonesian Citizens;
  6. A copy of passport for buyer and seller who are Foreign Citizens;
  7. If the verification application is filed by a proxy, a power of attorney and a copy of identity card of the proxy submitting and/or collecting the document;
  8. If the Taxpayer qualifies for not being required to have a Taxpayer Identification Number (TIN), a statement letter as specified in Appendix III to PER-26/PJ/2018;
  1. Collect the Certificate of Formal Verification of Proof of Compliance with Obligation to Pay Income Tax or the Notice of Incomplete and/or Incorrect Verification Application yourself at the Tax Office whose working area covers the location of land and/or building within a maximum period of 3 (three) business days.

Taxpayer carrying out transfer of land and/or building as their main business

If you are a Taxpayer carrying out transfer of land and/or building as your main business, what you have to do is:

  1. Pay Article 4(2) Income Tax at 2.5% (two point five percent) of the gross amount of the transfer of your land and/or building by first creating a billing code with MAP Code 411128 and Payment Type Code 402. The payment must be made prior to the deed, decision, agreement, or minutes of auction of the transfer of land and/or building being signed by an authorized officer. If what being transferred is Low-Cost House and Low-Cost Apartment exempt from Value-Added Tax (VAT), the rate is 1%;
  2. File an application for formal verification of proof of compliance with obligation to pay Income Tax to the Tax Office whose working area covers the location of land and/or building (PER-26/PJ/2018). The application is prepared using the application letter in Appendix IA to PER-26/PJ/2018 and enclosed with a list of Income Tax payments in hardcopy and softcopy formats made according to the format in Appendix IB to PER-26/PJ/2018;
  3. Collect the Certificate of Formal Verification of Proof of Compliance with Obligation to Pay Income Tax or the Notice of Incomplete and/or Incorrect Verification Application yourself at the Tax Office whose working area covers the location of land and/or building within the following periods:
  1. No later than 3 (three) business days if there are maximum 10 payment slips on the list of Income Tax payments;
  2. No later than 10 (ten) business days if there are more than 10 payment slips on the list of Income Tax payments.