BPHTB
Also called: bea perolehan hak atas tanah dan bangunan
Tax paid by the buyer when acquiring rights to land or buildings.
What it means
BPHTB or duty on acquisition of land and building rights is a tax paid by the buyer when acquiring rights to land or buildings. This tax is levied by the local government and is a requirement before transferring the certificate's name. The amount is calculated from the transaction value minus the non-taxable value, then multiplied by the applicable rate in the region. Therefore, the amount can differ between regions.
Why it matters for families
BPHTB is a cost often forgotten in the home-buying budget. If not prepared, the family may lack funds right during the name transfer process. Payment of this tax also holds up the issuance of a new certificate. Calculating it from the start makes financial planning more realistic.
Example
For example, a family buys a house for Rp600 million and the non-taxable value in their area is Rp60 million. With a 5 percent rate, BPHTB is about Rp27 million. This amount is outside notary fees and other mortgage costs, so it needs to be included in the budget.
Common misunderstanding
Many buyers think BPHTB is already included in the house price. This tax is generally the buyer's obligation and is paid separately from the transaction price.