Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia

Research Article

Legal Analysis of Property Transfer Tax Regulations in Notarial Transaction Agreements Amidst the Digitalization of Society 5.0

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  • @INPROCEEDINGS{10.4108/eai.29-6-2021.2312587,
        author={Albert Lodewyk Sentosa Siahaan and Budiman  Ginting and Muhammad  Yamin and Keizerina  Devi},
        title={Legal Analysis of Property Transfer Tax Regulations in Notarial Transaction Agreements Amidst the Digitalization of Society 5.0},
        proceedings={Proceedings of the 2nd International Conference on Law, Economic, Governance, ICOLEG 2021, 29-30 June 2021, Semarang, Indonesia},
        publisher={EAI},
        proceedings_a={ICOLEG},
        year={2021},
        month={10},
        keywords={legal analysis property transfer tax notarial transaction agreement digitalization},
        doi={10.4108/eai.29-6-2021.2312587}
    }
    
  • Albert Lodewyk Sentosa Siahaan
    Budiman Ginting
    Muhammad Yamin
    Keizerina Devi
    Year: 2021
    Legal Analysis of Property Transfer Tax Regulations in Notarial Transaction Agreements Amidst the Digitalization of Society 5.0
    ICOLEG
    EAI
    DOI: 10.4108/eai.29-6-2021.2312587
Albert Lodewyk Sentosa Siahaan1,*, Budiman Ginting1, Muhammad Yamin1, Keizerina Devi1
  • 1: Universitas Sumatera Utara
*Contact email: albertlodewyksiahaan@gmail.com

Abstract

This study aims to find alternative ways to use digital technology in answering the problem of implementing the transfer of land and building rights taxes in the sale and purchase deed. In notarial transaction agreements, property transfer tax is mandatory and is collected based on statutory regulations. Property transfer tax consists of income tax, value-added tax, sales tax on luxury goods, and property title transfer fee. It is calculated according to the Regional Tax and Retribution Law which takes the highest value of the Sales Value of the Taxable Object or transaction value. This causes legal uncertainty, as there are many cases where the calculation basis is fabricated to reduce the tax that must be paid prior to the signing of the agreement. This causes a large potential loss for the state if the calculation is based on the Regional Tax and Retribution Law. This is normative juridical research, which utilizes materials from books, laws, articles, and other legal materials. The results indicate that the basis for calculating property transfer tax in notarial transaction agreements should not be taken from the highest value between the Sales Value of the Taxable Object or transaction value, but rather from the fair market value. The Regional Tax and Retribution Law should be revised with the support of digitalization so that tax potential can increase.