3 weeks ago
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TEMPO.CO, Jakarta - The deed of sale and purchase (AJB) is a legal proof of the transfer of land rights from the old owner to the new owner.
AJB is essential when the buyer wants to create a certificate of ownership (SHM), as the deed serves as valid evidence of the sale and purchase transaction issued by Official for Making Land Deeds (PPAT).
AJB has sufficient legal power, but land with SHM ownership is considered to have higher value and legal assurance as it is not limited by time. In SHM, it is stated that the certificate holder has full rights to the land or property.
Furthermore, SHM does not need to be extended, thus it can be mortgaged or inherited. So, how much does it cost to process AJB into SHM, also known as changing the land certificate, in Indonesia?
Requirements for Processing AJB to SHM
Quoting the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (ATR/BPN) website, here are the document requirements that must be prepared for the transfer of sale and purchase rights of land:
- Completed and signed application form by the applicant or authorized person on a stamp.
- Power of attorney if delegated.
- Photocopies of the seller's and buyer's identities, such as electronic ID cards (e-KTP) and family cards (KK) as well as the power of attorney if delegated, verified against the originals by the counter staff.
- For legal entities, photocopies of the establishment deed and legal entity validation verified against the originals by the counter staff.
- Original land certificate.
- AJB from PPAT.
- Permission for the transfer of rights if the certificate or its decision states that the land rights can only be transferred with permission from the competent authority.
- Photocopy of outstanding tax notification letter (SPPT) and current year land and building tax (PBB) verified against the originals by the counter staff.
- Submission of land and building acquisition duty payment letter and proof of payment when registering the rights.
- Furthermore, the applicant must also pay attention to personal identity; land size, location, and use; declaration of non-dispute land; and statement of physical possession of land or building.
Estimated Costs of Processing AJB to SHM
Here is the breakdown of costs incurred for the land certificate name change process:
1. PPAT Fee
Based on Article 32 paragraph (1) of Government Regulation (PP) Number 24 of 2016 regarding Amendments to PP Number 37 of 1998 concerning the Positioning of Pejabat Pembuat Akta Tanah, the honorarium or PPAT fee, including witness fees, is not allowed to exceed 1 percent of the transaction price stated in the deed.
2. Income Tax (PPh) Rate for Sellers
Furthermore, the seller will also be subject to income tax as regulated in PP Number 34 of 2016 concerning Income Tax on Income from the Transfer of Rights to Land and/or Buildings and Sale and Purchase Agreement on Land and/or Buildings and its Amendments, including:
- 2.5 percent of the total gross value of the rights transfer other than the transfer of rights in the form of simple houses or simple apartment buildings (rusun) carried out by taxpayers whose main business is the transfer of rights to land and/or buildings.
- 1 percent of the total gross value of the transfer of rights in the form of simple houses or simple apartment buildings carried out by taxpayers whose main business is the transfer of rights to land and/or buildings.
- 0 percent for the transfer of rights to the government, State-Owned Enterprises (BUMN) assigned specific tasks by the government, or Regional Owned Enterprises (BUMD) obtaining specific assignments from the head of the region, as referred to in the land procurement law for development for public purposes.
3. BPHTB Rate for Buyers
Referring to Law Number 1 of 2022 concerning Financial Relations between the Central Government and Local Governments, BPHTB is levied on the acquisition value of taxable objects.
If the acquisition value of the taxable object is unknown or lower than the tax object sales value (NJOP), then the amount of BPHTB is equal to NJOP in the imposition of PBB in the acquisition year. The maximum BPHTB cost is 5 percent determined by local regulations (perda).
4. Transfer of Sale and Purchase Rights Fee at BPN Office
The calculation of the cost rate for processing AJB to SHM is determined by the formula = {land value per square meter x land area (square meters)} / 1,000 + registration fee. To facilitate the calculation, the public can utilize a cost simulation calculator provided by the Ministry of ATR/BPN through the website apis.atrbpn.go.id/Layanan/Peralihan/JualBeli.
For instance, for a land price of Rp2,500,000 per square meter with total land ownership of 100 square meters, the applicant will be charged a sale and purchase rights transfer fee of Rp300,000.
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