- Indonesia extended the 100 percent VAT waiver on residential property purchases until the end of 2025.
- The incentive aims to sustain household demand and support economic growth.
- The policy applies to transactions from July to December 2025.
- The VAT exemption covers property selling prices up to Rp 2 billion.
- Eligible properties include landed houses or apartments priced up to Rp 5 billion.
- The incentive is available for one unit per individual buyer.
- Indonesian citizens need a tax ID or national identity number to apply.
- Foreigners can apply if they have a tax ID and meet ownership requirements.
- Only new, ready-to-occupy, and previously unsold properties qualify.
- Transactions are ineligible if down payments were made before July 1, 2025.
- Buyers lose benefits if they acquire more than one unit or resell within a year.
- The policy replaces a previous rule that applied from January to June 2025.
- The government uses VAT relief to boost demand in the property sector.
Source: jakartaglobe.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
