Luxury Homes in IIFC Exempt from STLGs and Article 22 Income Tax

JAKARTA, DDTCNews – Through Law 6/2026, the government has also prepared sales tax on luxury goods (STLGs) incentives for the Indonesia International Financial Centre (IIFC).

The facilities granted take the form of an exemption from the imposition of STLGs. This exemption applies to the transfer of a group of luxurious residences to individuals, entities, and/or ministries/institutions that conduct business, carry out duties, are domiciled or have a place of residence in the IIFC.

"Further provisions on the granting of the sales tax on luxury goods facility...shall be stipulated under a ministerial regulation," reads Article 59 paragraph (2) of Law 6/2026, cited on Thursday (5/11/2026).

In addition, buyers of residential properties or houses classified as ultra-luxury in the IIFC are also exempt from the collection of Article 22 Income Tax. This is as stipulated under Article 54 paragraph (2) of Law 6/2026.

For information, the imposition of STLGs on luxury residences is regulated under Minister of Finance Regulation (MoF Reg.) 15/2023. Referring to that regulation, STLGs are levied on, among others, luxury houses, apartments, condominiums, town houses and the like with a selling price of IDR30 billion or more.

In addition to STLGs, there are also residences classified as ultra-luxury that are subject to Article 22 Income Tax. The provisions governing its imposition are regulated under MoF Reg. 253/2008, as last amended by MoF Reg. 92/2019. Pursuant to that regulation, buyers of goods classified as ultra-luxury are subject to Article 22 Income Tax.

With regard to residences, there are at least 2 groups of residences whose purchase is subject to Article 22 Income Tax. First, houses together with their land, with a selling price or transfer price exceeding IDR30 billion or a building area exceeding 400 m2.

Second, apartments, condominiums and the like, with a selling price or transfer price exceeding IDR30 billion or a building area exceeding 150 m2. Accordingly, the purchase of residences falling within the luxury and ultra-luxury categories in the IIFC shall not be subject to STLGs or Article 22 Income Tax. See What Goods Are Classified as Luxury and Ultra-Luxury in Tax Context? (dik)