Understanding the United Nations (Land and Building Tax)

If you have a property, you must understand what the United Nations or Building Land Tax must be paid to the government every year.

Having property like a house or land is not only a matter of prestige, but also the responsibility of the asset.

One of the obligations that you must understand as a property owner is to pay the United Nations (Land and Building Tax) paid every year.

But what exactly is the UN? How to calculate it? And what happens if you are late paying? Relax, this article will discuss everything simply.

Blog Skillife presents accurate information from various trusted sources, including news media on line and property site.

Know what is the United Nations?

The United Nations is a tax that is imposed on ownership or utilization of land and buildings. The government collects this tax because property is considered to provide economic and social benefits.

That is, if you have a house, empty land, shop houses, or even a private swimming pool, you may be required to pay the United Nations. The size of the tax is determined based on the area and condition of the object.

Who must pay and what are the objects?

Taxpayers can be in the form of individuals or legal entities that:

• Have the right to land or buildings
• Control or use such land/buildings

The tax object is divided into two:

• Earth: rice fields, gardens, yards, mines, vacant land
• Building: houses, shop houses, buildings, swimming pools, permanent fences, shopping centers, etc.

However, property for the public interest (worship, education, social, cultural, or state property) is excluded from the United Nations.

How to calculate the United Nations (Land and Building Tax)

So as not to be confused, here is a simple formula for calculating the United Nations:

1. Know Njop

NJOP (Tax Object Sales Value) is the market value of land and buildings, determined by the government based on location and conditions.

2. Reduce with NJOPTKP

NJOPTKP is a certain value that is not taxed. Like a “discount” from the government. Each region has its own rules, for example in Jakarta: Rp. 60 million.

3. Calculate NJKP

NJKP (Taxable Selling Value) = (NJOP – NJOPTKP) X Percentage of NJKP.

If NJOP is below Rp1 billion, use 20%; If above, use 40%.

4. Calculate the United Nations

PBB rates = 0.5% of NJKP.

Example:

NJOP: IDR 500 million
NJOPTKP: IDR 12 million
NJKP = (500 – 12) x 20% = IDR 488 million x 20% = IDR 97.6 million
PBB = 0.5% x Rp97.6 million = Rp.488,000

What’s the risk if you pay late?

If you are late paying, there is a fine of 2% per month, a maximum of 24 months. That is, the longer it is postponed, the greater the amount.

However, there is good news, namely some local governments provide relief or bleaching of fines, so it remains monitoring info from the local tax office.

Can you apply for relief?

Can. If you’re financial difficulties, you can submit a PBB reduction. Simply come to the tax office by bringing a letter of application and supporting documents such as KTP (Identity Card), proof of ownership, and salary slip (if needed).

Come on, so an intelligent taxpayer

The UN may feel like an annual burden, but actually this is your contribution to build public facilities, infrastructure, and services in the area where you live.

By understanding how it works, you can manage finances wiser and become responsible citizens.

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