Ministry of Finance of Republic of Indonesia : Minister of Finance Stipulated Regulation on Low Cost Apartment

Jakarta, 13/01/2016 MoF - The Minister of Finance stipulates Finance Minister Regulation (PMK) Number 269/PMK.010/2015 on Selling Price limits of Low Cost Apartment and Personal Income For People Obtaining Low Cost Apartment. The regulation was stipulated by The Minister of Finance on 31 January 2015 and entered into force on 8 January 2016.

At the time of PMK comes into force, the provisions stipulated in Article 1 point 5 of the the Minister of Finance Decree No.155/KMK.03/2001 on the Implementation of the Value Added Tax which was exempted on the import and/or delivery of Specific and Strategic Taxable Goods as amended by the Finance Minister Regulation Number 31/PMK.03/2008, declared void.

For low cost apartment whose acquisition was financed through a loan/ financing of subsidized house ownership, some of the conditions is the limit sales price that is not exceeding 250 million and income limits are not exceeded 7 million per month. This is a multi-storey residential building that are built in an environment that is used as a shelter equipped with a bathroom/toilet and kitchen, either built in or separate with communal use. The minimum size of the house is at least 21 m2 and do not exceed 36 m2, and is the first residential unit owned, used as a residence and not be transferred within the period, in accordance with the regulation.

According to PMK, the residential construction should refer to the Minister Regulation in the field of public works and housing. This residence become strategic taxable goods that are exempted of VAT. (as)