The government is once again providing relief for home buyers. The Ministry of Finance, through the Directorate General of Taxes (DJP), has extended the Value Added Tax (VAT) incentive for landed houses and apartment units covered by the government (PPN-DTP) throughout 2025. This move continues the policy implemented in 2023 and 2024.
The extension is formalized through Minister of Finance Regulation Number 13 of 2025 (PMK-13/2025), which came into effect on February 4, 2025. The government hopes this incentive will sustain public purchasing power and stimulate economic growth, particularly in the property sector.
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“Transactions in the property sector have a significant multiplier effect on other economic areas. As part of an economic policy package aimed at public welfare, this PPN-DTP incentive is expected to help maintain purchasing power and boost growth in various industries,” said DJP Director of Outreach, Services, and Public Relations, Dwi Astuti, in an official statement on Monday (February 24, 2025).
Under PMK 13/2025, purchases made between January 1 and June 30, 2025, qualify for a 100% VAT-DTP incentive on the payable VAT for the portion of the selling price up to IDR 2 billion, provided the total price does not exceed IDR 5 billion.
For transactions between July 1 and December 31, 2025, the incentive covers 50% of the payable VAT for the same portion of the selling price.
“For instance, if Mr. A buys a house for IDR 2 billion on February 14, 2025, the government will fully cover the VAT. Meanwhile, if Mrs. B purchases a house for IDR 2.5 billion on February 15, 2025, she will need to pay VAT at an effective rate of 11% on IDR 500 million, which amounts to IDR 55 million,” Dwi explained.
However, this policy does not apply to properties that have already received a VAT exemption.
“The government hopes the public will take advantage of this opportunity to own a home while also supporting the national property sector and its related industries,” Dwi added.
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