Jakarta Provincial Government Issues Bylaw No 1/2024 about Tax and Regional Retribution

Jakarta Provincial Government has designed and issued Bylaw No 1/2024 about Regional Tax and Retribution.

The bylaw is already valid since January 5, 2024

This legal product is a derivative of the enactment of Law of the Republic of Indonesia No 1/2022 about Financial Relations between the Central Government and Regional Governments as well as Government Regulation No 35/2023 about General Provisions for Regional Taxes and Regional Levies.

Jakarta Regional Revenue Agency (Bapenda) Head, Lusiana Herawati, said the bylaw will be the main basic in collecting and managing regional tax and retribution in Jakarta. It is hoped the regulation will bring positive impact for the Regional Revenue.

Tax Realization in South Jakarta Rp 14.41 T

"The bylaw is already valid since January 5, 2024," she said, Monday (1/22).

The types of Regional Taxes collected by the Jakarta Provincial Government based on the bylaw are Motor Vehicle Tax, Motor Vehicle Title Transfer Fee, Heavy Equipment Tax, Motor Vehicle Fuel Tax and Cigarette Tax.

Also Rural and Urban Land and Building Tax, Land and Building Rights Acquisition Fee, Certain Goods and Services Tax, Advertisement Tax and Ground Water Tax.

Meanwhile, the types of Regional Levies collected by the Jakarta Provincial Government based on the bylaw are General Services Levy, Business Services Levy and Certain Licensing Levy.

"The complete information regarding the local tax can be accessed on Instagram at Humaspajakjakarta, Twitter at HumaspajakJKT, and Facebook at Humas Pajak Jakarta", she added.

The following are the types and rates of tax for 2024 based on Bylaw No 1/2024;

1. Motor Vehicle Tax (PKB)

• The object of the PKB is ownership and/or control over Motorized Vehicles.

• The subject of the PKB is an individual or entity that owns and/or controls a motorized vehicle.

• Jakarta Provincial Government still uses progressive rates for ownership and/or control of motorized vehicles. There is a change in the imposition of PKB rates on ownership and/or control by private individuals, namely:

a. 2% (two percent) for ownership and/or control of the first Motorized Vehicle;

b. 3% (three percent) for ownership and/or control of a second Motorized Vehicle;

c. 4% (four percent) for ownership and/or control of a third Motorized Vehicle;

d. 5% (five percent) for ownership and/or control of the fourth Motorized Vehicle;

e. 6% (six percent) for ownership and/or control of the fifth Motor Vehicle and so on

• The PKB rate for ownership and/or control of Motorized Vehicles used for public transportation, employee transportation, school transportation, ambulances, firefighting, social religious, social and religious institutions, the Government, and the Jakarta Provincial Government is set at 0.5% (zero point five percent).

• The PKB rate for ownership and/or control by the Agency is set at 2% (two percent) and is not subject to progressive tax.

• Motor Vehicle Ownership is based on the same name, population registration number and/or address.

• Provisions regarding PKB will come into effect on January 5, 2025.

2. Motor Vehicle Title Transfer Fee (BBNKB)

• The BBNKB object is the first hand over of Motorized Vehicles which must be registered in the Jakarta Province area.

• The BBNKB rate is set at 12.5% ​​(twelve point five percent) for the first hand over.

• BBNKB is not imposed on the second and subsequent handovers of a Motorized Vehicle.

• BBNKB payment is made before motor vehicle registration.

• Provisions regarding PKB will come into effect on January 5, 2025.

3. Heavy Equipment Tax (PAB)

• PAB is a new type of tax collected by the Jakarta Provincial Government.

• PAB is a tax on ownership and/or control of heavy equipment.

• The PAB object is ownership and/or control of Heavy Equipment.

• The basis for imposing PAB is the sales value of the Heavy Equipment.

• The PAB rate is set at 0.2% (zero point two percent)

4. Motor Vehicle Fuel Tax (PBBKB)

• The object of PBBKB is the submission of BBKB by the BBKB provider to consumers or motor vehicle users.

• PBBKB rate is set at 10% (ten percent).

• Specifically, the PBBKB rate for public vehicle fuel is set at 50% (fifty percent) of the PBBKB rate for private vehicles.

5. Cigarette Tax

• The object of cigarette tax is cigarette consumption, which includes cigarettes, cigars, leaf cigarettes and other forms of cigarettes that are subject to cigarette excise.

• The basis for imposing Cigarette Tax is the excise tax set by the Government on cigarettes.

• The cigarette tax rate is set at 10% (ten percent).

6. Rural and Urban Land and Building Tax (PBB-P2).

• PBB-P2 objects are land and/or buildings owned, controlled and/or utilized by individuals or entities, except for areas used for plantation, forestry and mining business activities.

• The PBB-P2 rate has changed to 0.5% (zero point five percent).

• The amount of NJOPTKP changes to Rp 60,000,000 (sixty million rupiah) for each Taxpayer (the NJOPTKP is only given for one of the PBB-P2 objects for each Tax Year).

• NJOP is set at a minimum of 20% (twenty percent) and a maximum of 100% (one hundred percent) of NJOP after deducting NJOPTKP.

• The PBB-P2 tariff for food and livestock production land is set at 0.25 (zero point twenty five percent).

7. Fees for Acquisition of Rights to Land, Land and Buildings (BPHTB).

• The object of BPHTB is the acquisition of rights to land and/or buildings which include:

a. Transfer of rights due to: sale and purchase; exchange; grant; testamentary grant; inheritance; income in companies or other legal entities; separation of rights resulting in transfer; appointment of buyers in auctions; implementation of the judge's decision which has permanent legal force; business merger; smelting business; business expansion; present.

b. Granting new rights due to: continuation of the release of rights; beyond the waiver.

• The BPHTB rate is set at 5% (five percent).

• The amount of the Acquisition Value of Non-Taxable Tax Objects (NPOPTKP) changes to Rp 250,000,000 (two hundred and fifty million rupiah) for the acquisition of the first right Taxpayers in the Jakarta Province area where the BPHTB is owed.

• In the case of rights acquired due to a will or inheritance gift received by an individual who is still related by blood in a straight line of descent one degree up or one degree down with the grantor of the will or inheritance, including husband/wife, the NPOPTKP changes to Rp 1,000 ,000,000 (one billion rupiah).

8. Certain Goods and Services Tax (PBJT)

• The object of PBJT is the sale, delivery and/or consumption of certain goods and services which include:

a. Food and/or Drinks

b. Electric Power

c. Hotel Services

d. Parking Services

e. Arts and Entertainment Services

• PBJT is required to be an individual or entity carrying out sales, delivery, and/or consumption of certain goods and services.

• The PBJT rate is set at 10% (ten percent).

• Special PBJT rates for entertainment services at discos, karaoke, nightclubs, bars, etc steam bath/spa is set at 40% (forty percent).

• Specifically PBJT tariffs for Electric Power for:

a. Electricity consumption from other sources by industry, oil and natural gas mining, is set at 3% (three percent).

b. Electricity consumption from other sources other than industry, petroleum mining and natural gas as referred to in letter a, is set at 2.4% (two point four percent).

c. Consumption of self-generated Electricity is set at 1.5% (one point five percent).

9. Pajak Reklame

• Advertisement Tax objects are all advertisement operations including: a. Billboard/videotron/megatron billboards; b. Fabric advertising; c. Adhering advertising/stickers; d. Leaflet advertising; e. Mobile advertising, including on vehicles; f. Aerial advertising; g. floating billboards; h. Film/slide advertising; and i. Demonstration advertisement.

• Advertisement Taxpayers are individuals or entities that organize advertisements.

• Specifically for running advertisements, the advertisement tax payable is collected in the Jakarta Province area where the advertisement operator's business is registered.

• The Advertisement Tax rate is set at 25% (twenty five percent).

10. Groundwater Tax

• The object of PAT is the extraction and/or utilization of ground water.

• The PAT obligator is the individual or entity carrying out the collection and/or use of ground water

• The PAT rate is set at 20% (twenty percent).

11. Regional Levy

• Types of Retribution consist of:

a. General Services Levy

b. Business Services Levy

c. Certain Licensing Levy

• Regional Work Units collecting types of Retribution are determined by Governor Regulation.

• Tax and levy collection is carried out based on the Tax and Levy information system.