The government has extended the government-borne VAT incentive on the delivery of landed houses and apartment units again in the 2026 fiscal year. This is stipulated in Minister of Finance Regulation Number 90 of 2025 concerning Value Added Tax on the Delivery of Landed Houses and Apartment Units Covered by the Government for the 2026 Fiscal Year, which was enacted on December 18, 2025, and will come into effect on January 1, 2026. This incentive is only available for VAT payable on the delivery of landed houses and apartment units that meet the requirements covered by the government for the 2026 fiscal year. In accordance with Article 2 paragraph 2, the landed houses referred to are buildings in the form of residential houses or row houses, both multi-storey and single-storey, and include buildings used as shops or offices, while apartment units function as residential premises in accordance with Article 3 paragraph 2.
Based on Article 4, the criteria for landed houses and apartment units that are eligible for VAT incentives covered by the government in the 2026 fiscal year are as follows:
- The selling price is a maximum of Rp5,000,000,000 (five billion rupiah),
- It is a new landed house or new apartment unit that is handed over in new condition, and
- It has obtained a landed house and apartment unit identification code provided through an application at the Ministry or the People’s Housing Savings Management Agency.
In accordance with article 7, the Government shall bear 100% of the VAT payable on the sale price up to IDR 2,000,000,000 for landed houses or apartment units with a maximum sale price of IDR 5,000,000,000. This incentive is provided for VAT payable on the transfer of landed houses or apartment units that occurs when the deed of sale is signed before a notary from January 1, 2026, to December 31, 2026.
The provision of this incentive is a strategic policy to maintain growth in the property sector while also having an impact on the national manufacturing industry. In addition, this policy also demonstrates the government’s commitment to boosting people’s purchasing power and strengthening economic sectors that are closely related to domestic industry.
The extension of the VAT incentive borne by the government is considered to be in line with the government’s efforts to maintain domestic-based national economic growth, while strengthening the national industry structure to be more resilient and sustainable.
By Olina Rizki Arizal – Partner
TBrights is a tax consultant in Indonesia that is currently an Integrated Business Service in Indonesia that can provide comprehensive tax and business services.
References:
- The Minister of Finance Regulation Number 90 of 2025 concerning Value Added Tax on the Transfer of Landed Houses and Apartment Units Covered by the Government in Fiscal Year 2026
