Property Transactions of IDR 500 Million Required to Report, Collapsing Sales

Jakarta, CNBC Indonesia – Regulations regarding transactions over Rp. 500 million must include a report on the origin of the funds making the property industry affected. This provision which aims to prevent money laundering has been in effect for a long time, but during the Covid-19 epidemic, it aggravated the property market, so that the mandatory reporting provisions were again questioned.

This rule is regulated in the Law on the Prevention and Eradication of Money Laundering. Property developers who are going to offer the unit must also ask the buyer the origin of the funds. Including a statement letter of fulfillment of tax obligations by prospective buyers or investors.

“People who are interested in that we show form There are many who cancel the statement letter, 50% of the people who want the transaction. For example, 4 people came, we continued to give them, the 2 ones were canceled, he said oh later, “said General Chairman of DPP Real Estate Indonesia (REI) Totok Lusida to CNBC Indonesia, Monday (7/9).

The provisions of the developer must report their purpose to avoid money laundering. This is regulated in Law Number 8 of 2010 concerning the Prevention and Eradication of the Crime of Money Laundering. With this rule, the public and entrepreneurs are directed to comply with taxes by reporting it directly.

In the provisions of Article 17 of the Law, property companies / property agents are included in the category of parties that are required to report for transactions over IDR 500 million. Article 27 confirms (1) Providers of other goods and / or services as referred to in Article 17 paragraph (1) letter b are required to submit reports on Transactions conducted by Service Users in rupiah currency and / or foreign currency whose value is at least or equivalent to Rp. 500,000,000.00 (five hundred million rupiah) to PPATK.

This condition causes the circulation of money, which should be large, not optimal. Totok tries to find out the cause, most of them claim to be constrained by not reporting taxes on their income so far.

“I asked, why? (He answered) It was not black money, but money that had not yet been filed with taxes. (If I buy property) I will be subject to tax (case) later. So he postponed it. Not the money he stole from neighbors, right,” he explained. .

He admitted that the tax amnesty program several years ago could be of assistance. At that time many people joined this program. However, not a few are also doubtful, worried that if they come, they will stumble into a case. Totok admitted that these doubts have influenced the decision to invest in property today.

“Then it is wrong? Yes, it is wrong, the one with the money also knows he is wrong. Then why did not use Tax Amnesty yesterday? Because when Tax Amnesty was hesitating, is this true? Later reports are even checked, wong is wrong usually afraid,” he called.

The regulation regarding the obligation to report this transaction is indeed a long time ago, but in the context of the property market which is currently sluggish due to the current corona pandemic, this regulation is crucial for developers. The hope is that if there are no factors that make people afraid to spend property, then the hope is that they can boost property.

BI noted that sales of new homes in the second quarter of 2020 still experienced a sharp decline on an annual basis. Although the decline was still better than in the first quarter of 2020, the triggers were many of which canceled purchases.

In the second quarter, home sales contracted 25.6% (yoy), improving from the first quarter which fell to 43.19% (yoy). However, on a quarterly basis home sales did grow 10.14%

“However, in the second quarter of 2020, there were property units that experienced sales cancellations by consumers of around 10% of the total units sold in the second quarter of 2020 with the largest portion being small-type houses (64%),” explained the BI survey of residential properties in the second quarter. -2020 quoted, Wednesday (12/8).

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