The clarification responds to recent public debate suggesting that inheritance tax would be imposed when heirs transfer ownership of land and buildings.
“The transfer of land and/or building rights due to inheritance is exempt from income tax. Heirs are not subject to PPh on land or buildings acquired from the decedent,” Finance Ministry official Rosmauli said in Jakarta on Saturday.
She noted that the provision is stipulated in Finance Minister Regulation (PMK) No. 81 of 2024, Article 200, paragraph (1) letter d.
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However, she explained, the exemption requires the issuance of a certificate of PPh exemption for income derived from the transfer of inheritance or from a land and building sale-purchase agreement and its amendments.
Details are outlined in Article 200, paragraph (2) of PMK-81/2024.
Heirs may submit a written request for a certificate of income tax exemption either to their registered tax office (KPP) or online via Coretax DJP.
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Rosmauli also emphasized that confusion often arises between income tax (PPh) and land and building acquisition duty (BPHTB).
According to her, BPHTB remains applicable because it falls under regional taxation as stipulated by Law No. 1 of 2022.
Rosmauli appealed to the public to fully understand the tax provisions related to inheritance.
“There is no income tax on inheritance, and heirs are entitled to apply for a certificate of exemption from final income tax,” she stressed.
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Translator: Imamatul Silfia, Cindy Frishanti Octavia
Editor: M Razi Rahman
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