Tax and BPHTB on Inherited Land or Buildings: A Guide for Families

Understanding BPHTB in Inheritance

When someone passes away and leaves behind land or buildings, heirs often ask: is there any tax that must be paid? The answer is yes. In Indonesia, the acquisition of rights over land and buildings through inheritance is subject to the Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB) (Transfer Tax on Land and Building Rights). This tax arises when the heirs carry out the transfer of the certificate into their names. However, there is a special scheme for inheritance that provides relief, so not all inheritance is subject to tax.

It must be understood that BPHTB is different from Pajak Penghasilan (PPh) (Income Tax). Inheritance is not an object of PPh, so when receiving inheritance, there is no PPh that must be paid. PPh only arises if the heirs sell the inherited land at a later date.

The Difference Between Inheritance, Grants, and Sale-Purchase

From a taxation perspective, inheritance, grants, and sale-purchase are treated differently:

• Inheritance: Subject to BPHTB, but with a Nilai Perolehan Objek Pajak Tidak Kena Pajak (NPOPTKP) (Non-Taxable Acquisition Value of the Tax Object) of at least Rp300 million. The maximum BPHTB rate is 5% of the difference between NPOP and NPOPTKP.
• Grant: Also subject to BPHTB, but its NPOPTKP is usually smaller, except for grants to blood relatives in a direct line one degree (for example, parent to child) which may receive certain relief.
• Sale-purchase: Subject to BPHTB (buyer) and final PPh (seller).

Because these rules can differ between regions, it is important to check with the local tax office or a notary/PPAT. They will calculate based on the NJOP and the actual transaction value.

Example of BPHTB Calculation on Inheritance

Suppose Mr. Ahmad passes away leaving a plot of land and a building with a total value of Rp1.2 billion. He has a wife and two children. The heirs agree to carry out the transfer of the certificate. The following is an illustration of the BPHTB calculation:

So, the total BPHTB that must be paid is around Rp45 million. This figure does not yet include notary/PPAT fees, registration fees at BPN, and other costs. Remember, this is only an illustration. The amount of NPOPTKP and the rate can differ depending on regional regulations. Always consult with the tax office or a notary/PPAT for a definite calculation.

Documents and Steps to Handle BPHTB on Inheritance

The process of transferring title through inheritance requires several documents and steps. Here is a practical checklist:

1. Obtain a Surat Keterangan Ahli Waris (Certificate of Heirs) from the village/kelurahan or the Pengadilan Agama (Religious Court) (for Muslims).
2. Prepare the original land certificate, KTP and KK of the heirs, death certificate, and NPWP (if any).
3. Calculate the BPHTB at the Kantor Pelayanan Pajak (KPP) (Tax Service Office) or the local Bapenda by bringing the original documents.
4. Pay the BPHTB and keep the proof of payment.
5. Apply for the transfer of title to the Kantor Pertanahan (BPN) (Land Office) through a notary/PPAT.

IndoWaris can help you draw a family tree and calculate the inheritance shares according to faraid, so that the certificate of heirs is more accurate. However, for tax matters and land administration, still involve a notary/PPAT or tax consultant.

When Is Inheritance Not Subject to BPHTB?

Inheritance is not subject to BPHTB if the tax object acquisition value is below the NPOPTKP. For example, if the value of the inherited land is only Rp250 million, then there is no BPHTB because it is still below the threshold of Rp300 million. In addition, if the heirs do not carry out the transfer of title, practically there is no BPHTB obligation yet—but delaying the transfer of title can cause problems later, especially if they want to sell or divide the inheritance.

There are also cases where the inheritance is land that has not been certified; the process can be different and requires a survey and first-time land registration. In situations like this, the costs incurred are not only BPHTB, but also land registration fees.

Practical Next Steps

Dealing with inheritance tax matters can indeed be confusing. Here are practical steps that a family can take:

• Collect all the heirs' documents and the death certificate.
• Ask directly to the regional tax office or Bapenda about the NPOPTKP and the rate that applies in your area.
• Consult with a notary/PPAT for a simulation of the transfer of title fees and BPHTB.
• If there is a dispute or doubt about the heirs, submit an application for the determination of heirs to the Pengadilan Agama (Religious Court).
• Use IndoWaris to map out who the heirs are and how much each share is, as a basis for family deliberation.

In the end, tax is a state obligation that must be fulfilled, while the distribution of inheritance is a sharia obligation. Both need to be completed calmly and through deliberation. If in doubt, do not hesitate to ask an ustadz, notary, or tax officer.