Taxation ยท KBLI 41011

Property Developer Tax

Property developers face layered tax obligations: 2.5% Final Income Tax on sales, 11% VAT on unit delivery, and facilitating BPHTB for buyers. Tax recognition timing differs from accounting because Final Income Tax is collected at AJB. Arunika Consulting helps developers manage property taxes to maintain cash flow and compliance.

Chat on WhatsApp All services

What usually goes wrong

  • Final Tax vs Payment Timing

    2.5% Final Income Tax must be paid before AJB, even if payment from buyer is installed over years.

  • VAT on Down Payment

    VAT is due when payment is received (including DP), not at unit handover.

  • DTP VAT Incentive for Housing

    Certain houses get Government-Borne VAT incentives, but conditions and administration are complex.

What we do

  1. 01

    Property Sales Tax Planning

    Structuring AJB schedules and Final Tax payments optimally with project cash flow.

    • Planned cash flow
    • Timely tax payment
    • No AJB delays
  2. 02

    Property VAT Administration

    Setting up tax invoice issuance for down payments and settlements according to regulations.

    • Correct tax invoices
    • Lower penalty risk
    • Satisfied buyers
  3. 03

    DTP Incentive Assistance

    Assisting with DTP VAT claims for eligible houses according to the latest PMK.

    • Competitive pricing
    • Maximized incentives
    • Complete documentation

Related regulations

  • PP 34/2016

    Final Income Tax on Transfer of Land/Building Rights

    2.5% Final Income Tax rate on land and/or building sales by developers.

  • UU BPHTB

    Law No. 21/1997 jo. Law HKPD

    Land and Building Acquisition Fee of 5% borne by buyer.

  • PMK-61/2022

    VAT on Delivery of Landed Houses and Apartment Units

    11% VAT provisions and DTP incentives for certain houses.

If the tax office starts asking questions

The team that keeps your books and files your taxes also stays with you through an SP2DK, an audit, an objection and an appeal.

How we handle tax disputes

Frequently Asked Questions

When must property Final Tax be paid?

2.5% Final Income Tax must be paid and SSP attached before signing AJB at the notary. Without SSP, AJB cannot be done.

Does the developer collect BPHTB?

No. BPHTB is the buyer's obligation at 5% of NPOP minus NPOPTKP. The developer only facilitates the process.

What if a buyer cancels after DP?

VAT paid on DP can be credited or refunded. Final Income Tax is not due if there is no AJB yet.

Who handles my tax work?

Your tax work is handled by Arunika's tax consultants. We confirm the scope, deadlines and price before work starts.

What should I do if I receive an SP2DK letter or tax audit notice?

Contact us early. We help analyze the risk, prepare supporting documents, draft the response, and assist discussions with the tax office.

What does tax planning cover?

We review your structure, transactions and available incentives so tax is calculated under the rules, without crossing into tax evasion. The outcome depends on your facts, so we do not promise a savings figure.

Related Industries

Tell us about your business

Send your line of business, rough annual turnover, and what is going wrong. We reply on WhatsApp.

Chat on WhatsApp