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Boosting Property Sector,
Government Extends VAT Incentives for Landed Houses and Flats
Ministry of Finance - The government has extended the provision of Value Added Tax (VAT) incentives for the transfer of landed houses and government-borne flats (DTP) for the 2025 fiscal year. These provisions are regulated through the issuance of the Minister of Finance Regulation (PMK) Number 13 of 2025 which has been in effect since February 4, 2025. The extension of this incentive is a continuation of the VAT incentive policy that was previously provided in 2023 and 2024.
"Transactions in the property sector are transactions that have a large multiplier effect on other economic sectors. As part of the economic policy package for public welfare, the provision of this VAT incentive is expected to maintain people's purchasing power and encourage the growth of other economic sectors," said the Director of Counseling, Services, and Public Relations of the Directorate General of Taxes, Ministry of Finance, Dwi Astuti.
Through the issuance of PMK-13/2025, the handover of landed houses or apartment units carried out from January 1 to June 30, 2025 will receive a 100% VAT-DTP incentive on VAT payable from the selling price portion of up to IDR 2 billion with a maximum selling price of IDR 5 billion.
"Transactions in the property sector are transactions that have a large multiplier effect on other economic sectors. As part of the economic policy package for public welfare, the provision of this VAT incentive is expected to maintain people's purchasing power and encourage the growth of other economic sectors," said the Director of Counseling, Services, and Public Relations of the Directorate General of Taxes, Ministry of Finance, Dwi Astuti.
Through the issuance of PMK-13/2025, the handover of landed houses or apartment units carried out from January 1 to June 30, 2025 will receive a 100% VAT-DTP incentive on VAT payable from the selling price portion of up to IDR 2 billion with a maximum selling price of IDR 5 billion.
Meanwhile, the handover of landed houses or apartment units carried out from July 1 to December 31, 2025 will receive a 50% VAT-DTP incentive on VAT payable from the selling price portion of up to IDR 2 billion with a maximum selling price of IDR 5 billion.
"For example, if Mr. A buys a house for IDR 2 billion on February 14, 2025, then all of his VAT is borne by the Government. Another example is if Mrs. B buys a house for IDR 2.5 billion on February 15, 2025, then the VAT that Mrs. B must pay is effectively 11% times IDR 500 million or IDR 55 million," explained Dwi.
Dwi emphasized that this policy does not apply to landed houses or flats that have received VAT exemption facilities. By providing VAT DTP incentives for the transfer of landed houses and flats, the Government is paying attention to helping people own homes at more affordable prices and encouraging the growth of the property sector.
"The government hopes that people can take advantage of this opportunity to own a home while supporting the national economic growth in the property sector and the housing sector".
"For example, if Mr. A buys a house for IDR 2 billion on February 14, 2025, then all of his VAT is borne by the Government. Another example is if Mrs. B buys a house for IDR 2.5 billion on February 15, 2025, then the VAT that Mrs. B must pay is effectively 11% times IDR 500 million or IDR 55 million," explained Dwi.
Dwi emphasized that this policy does not apply to landed houses or flats that have received VAT exemption facilities. By providing VAT DTP incentives for the transfer of landed houses and flats, the Government is paying attention to helping people own homes at more affordable prices and encouraging the growth of the property sector.
"The government hopes that people can take advantage of this opportunity to own a home while supporting the national economic growth in the property sector and the housing sector".