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Corporate Income Tax: Explore Obligations, Strategies, & Optimization
In the intricate landscape of corporate finance, a critical facet that requires meticulous attention is Corporate Income Tax (CIT). The reason is...
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2 min read
Wienanto Tanuwidjaja
Originally posted on Oct 15, 2025 10:11:34 AM
Last updated on Oct 15, 2025 10:11:34 AM
The Indonesian Government has updated the Value Added Tax (VAT) incentive for property buyers through the Minister of Finance Regulation No.60/2025 (PMK-60). Effective 25 August 2025, this regulation increases the VAT incentive to 100% VAT borne by the Government for eligible properties handed over between July and December 2025.
This change replaces the earlier 50% incentive under PMK-13/2025 and is part of the Government’s effort to stimulate the property sector and support home ownership.
Table of Contents:
1. Who Qualifies for the VAT Incentive?
2. Important Notes on Cancellations
3. Why This Matters for Developers and Buyers
4. How Logiframe Helps You Stay Compliant
5. Example: How the Incentive Works
6. Final Thoughts
To enjoy the incentive, the following criteria must be met:
Property type: New landed houses and residential units.
Maximum selling price: IDR 5 billion.
Covered portion: VAT is fully borne by the Government on the selling price up to IDR 2 billion.
Conditions for eligibility:
- The property must have a house identity code issued by the Ministry of Public Works and Housing.
- The code must appear in the handover minutes (Berita Acara Serah Terima) and on the VAT invoice.
- The property must be delivered first-hand by the developer and in a ready-to-use condition.
Each individual can only use this incentive once, but even if you have used previous VAT incentives, you may still be eligible under PMK-60 for a different property.
If a purchase made before 1 July 2025 is cancelled, the buyer cannot apply the new VAT incentive to the same property.
If VAT was wrongly claimed in such cases, the Tax Office may collect the VAT payable. Developers and buyers need to ensure proper documentation and compliance to avoid risks.
For developers:
Proper VAT invoicing and documentation are critical.
Eligibility requirements should be communicated clearly to buyers.
For buyers:
This is a valuable opportunity to save significantly on property purchases in 2025.
Buyers should confirm eligibility before finalizing transactions.
At Logiframe, we specialize in accounting, tax compliance outsourcing, and ERP solutions (Xero and NetSuite). We can help:
Ensure your VAT invoices and reports comply with PMK-60.
Advise on eligibility for both developers and buyers.
Integrate VAT compliance into your accounting systems for efficiency and accuracy.
Provide outsourced accounting and tax services so you can focus on your business while staying fully compliant.
Scenario 1: Buying a house worth IDR 1.8 billion → Entire VAT is borne by the Government.
Scenario 2: Buying a house worth IDR 4.5 billion → VAT is covered up to IDR 2 billion; the remaining portion is subject to normal VAT
The VAT incentive under PMK-60/2025 is a strong opportunity for individuals and a boost for the property sector. But compliance is key — without proper documentation, both developers and buyers may risk losing the incentive.
At Logiframe, we provide tailored tax outsourcing and advisory services to help you maximize incentives while staying fully compliant.
Contact us today to discuss how this regulation may impact your property transactions or development projects.
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