Inheritance Land Title Transfer Tax: Why Do We Still Have to Pay?

Recently, the public has been discussing a statement made by former child actress Leony, who expressed her objection to paying tax when processing the transfer of ownership (title transfer) for inherited land. Her reasoning was simple: her parents already paid taxes when they bought the land, so she felt heirs should not have to pay anything again.

At first glance, this sounds reasonable. But what does the law actually say? Let’s break it down in plain language.

What Is Inheritance Title Transfer?

Inheritance title transfer is the administrative process at the land office to officially change the land certificate from the parents’ name to the heirs’ names. This transfer of ownership is what triggers a tax obligation.

Applicable Taxes

1. Income Tax (PPh)
   For inherited land, no income tax applies. Heirs are not subject to income tax for inherited property.

2. BPHTB (Duty on Acquisition of Land and Building Rights)
   This is a local tax applied whenever there is a transfer of land ownership, including inheritance. The amount is determined by the local government (regent/mayor).

The Rules in Cianjur

In Cianjur Regency, the legal basis is Cianjur Regency Regulation No. 17 of 2023. The rules are:

• BPHTB Rate: 5% of the Acquisition Value (NPOP) after deducting the non-taxable portion (NPOPTKP).

• NPOPTKP for inheritance: IDR 400 million, but only applies to one inherited land certificate processed in that year.

Example:

• Inherited land value (NJOP) = IDR 500 million

• Minus NPOPTKP (IDR 400 million) → Remaining IDR 100 million

• Tax 5% = IDR 5 million

For other certificates processed in the same year, the IDR 400 million deduction does not apply. They are taxed based on full NJOP.

Inheritance Tax Reductions

In addition to the IDR 400 million deduction, there are special reductions for inheritance cases:

• First land: 50% reduction on payable tax

• Second land: 40% reduction

• Third land: 30% reduction

• Fourth and subsequent: 20% reduction

If you process all certificates in the same year, only one gets the IDR 400 million deduction, while the rest are fully taxed (though still eligible for the percentage reductions).

Common Mistake Among Cianjur Residents

Many people in Cianjur only process inheritance title transfers when they already have a buyer. For example, if there are three inherited lands, they process all three at once.

As a result, only one certificate benefits from the IDR 400 million deduction, while the others are taxed in full. This leads to a much higher tax bill than necessary.

A Smarter Way

Don’t wait until there’s a buyer before processing inheritance taxes. Start the transfer process now, even if you don’t plan to sell the land yet. Do it step by step: one certificate per year.

This way, each year you can make use of the IDR 400 million deduction for one certificate, plus the percentage reductions. Your tax burden will be much lighter. And when it’s time to sell, the process will be smoother since the certificates are already in the heirs’ names.

Conclusion

Inheritance land title transfer tax is not a “double tax.” It is a legal obligation under Indonesian law. With the IDR 400 million deduction (NPOPTKP) and additional reductions for inheritance, the tax burden can actually be quite light — provided you manage the process wisely.

Don’t wait until you have a buyer. Process your inheritance title transfers now, one certificate per year, to maximize the deductions and avoid being hit with a large tax bill later.

If the process feels complicated, consult a notary who can guide you to ensure everything runs smoothly, legally, and in accordance with current regulations.

Important Note

The information in this article is accurate as of the date of publication. However, regulations may change in the future. Always check the latest legal provisions or consult directly with a notary/PPAT to ensure you have the most up-to-date information.