The VAT Incentive for Landed Houses and Apartments is Extended Until the End of 2025.

JAKARTA. Good news for those planning to buy a house this year. The government has officially extended the Value Added Tax (VAT) incentive for the purchase of landed houses and apartment units until December 31, 2025. This policy is stipulated in Minister of Finance Regulation Number 13 of 2025 (PMK 13/2025), which takes effect on February 4, 2025.

The Director of Extension, Services, and Public Relations of the Directorate General of Taxes (DGT) Dwi Astuti, stated that this policy aims to maintain public purchasing power and stimulate growth in the property sector, which has a ripple effect on other economic sectors.

"Transactions in the property sector are transactions that have a large multiplier effect on other economic sectors. As part of an economic policy package for public welfare, the provision of this VAT incentive is expected to maintain public purchasing power and drive growth in other economic sectors," said Dwi in a press release from the DGT on Saturday (February 22).

Details of the 2025 VAT Incentive

Through PMK-13/2025, the public can benefit from the government-borne VAT incentive (PPN-DTP) under the following conditions:

1. Period: January 1 - June 30, 2025:

• 100% VAT exemption for house prices up to IDR 2 billion.
• Maximum house price eligible: IDR 5 billion.

2. Period: July 1 - December 31, 2025:

• 50% VAT exemption for house prices up to IDR 2 billion.
• Maximum house price eligible: IDR 5 billion.

As an illustration, here is an example of how the incentive is applied:

"If Mr. A purchases a house worth IDR 2 billion on February 14, 2025, the entire VAT is covered by the government. However, if Mrs. B purchases a house worth IDR 2.5 billion on February 15, 2025, then the VAT that Mrs. B has to bear is only 11% of IDR 500 million, which amounts to IDR 55 million."

Eligibility for the Incentive

This incentive does not apply to landed houses or apartment units that have already received other VAT exemption benefits. However, the government encourages the public to take advantage of this opportunity to own a home.

"At the same time, this initiative also supports national economic activity, particularly in the property sector and its supporting industries," added Dwi. (KEN)