Indonesia changes rules on luxury tax for property

Jakarta

INDONESIA has changed the way it applies luxury tax to certain apartments and houses by basing it on value instead of size, in a move that may clear up uncertainty plaguing the property sector.

A house with a sale price of 20 billion rupiah (S$204,000) or above is now subject to a 20 per cent luxury tax, according to a ministerial decree. Previously, the finance ministry had put a luxury tax of the same rate on houses of 350 square metres or larger.