Procedure for Obtaining a Tax Clearance Certificate for Inheritance Assets

Although inheritance increases the economic capacity of the recipient, inherited assets are not considered objects of Income Tax. Therefore, heirs who receive an inheritance will not be required to pay tax.

The Minister of Finance Regulation (PMK) Number 81 of 2024 stipulates that the transfer of rights to land and/or buildings due to inheritance is exempt from Income Tax.

However, this exemption only applies if the heir possesses a Tax Clearance Certificate (SKB) for the transfer of rights to the land and/or building.

Procedure for Submitting an Income Tax Clearance Certificate (SKB PPh) Application

The procedure for submitting an SKB PPh application for inherited assets is regulated under the Directorate General of Taxes Regulation Number PER-8/PJ/2025.

According to this regulation, an application for an SKB PPh for inherited assets may be submitted by the heir through three channels: via Coretax, via Post/Expedition Company, or directly through the Tax Office (KPP) where the heir is registered.

When submitting the application for a Tax Clearance Certificate, the heir must also attach a Statement of Inheritance Distribution, signed by both the applicant heir and the other heirs.

The format of the Statement of Inheritance Distribution can be found in the appendix of PER-8/PJ/2025.

Timeframe for Inheritance Tax Clearance Certificate (SKB PPh) Application

Once an application for an SKB PPh for inherited assets has been submitted, the tax authority will process it within a maximum of 3 working days after the complete application is received.

If the heir does not submit an application for a Tax Clearance Certificate, the transfer of inherited land and/or buildings will be subject to Income Tax.

The applicable tax obligation is Final Income Tax under Article 4, paragraph (2), imposed at a rate of 2.5% of the gross value. The gross value refers to the amount that should be received or obtained based on the market price.

Still Subject to BPHTB

Although inheritance is exempt from Income Tax, the transfer of inherited assets remains subject to Duty on the Acquisition of Land and Building Rights (BPHTB).

Referring to Law (UU) Number 1 of 2022 concerning Financial Relations between the Central Government and Regional Governments, BPHTB is a tax on the acquisition of rights to land and/or buildings. District/municipal governments collect BPHTB.

The objects subject to BPHTB include the transfer of land or buildings due to:

• Sale and purchase
• Exchange
• Grant
• Testamentary grant
• Inheritance
• Contribution to a company or other legal entity
• Separation of rights resulting in transfer
• Appointment of a buyer in an auction
• Execution of a court ruling with permanent legal force
• Merger of businesses
• Consolidation of businesses
• Expansion of companies, or
• Gifts.

In addition, BPHTB may also arise from the granting of new rights as a continuation of the release of rights or beyond the release of rights. (ASP/KEN)