Jakarta — Good news for individuals currently handling inheritance matters involving land or buildings. The Directorate General of Taxes (DJP) has confirmed that inheritance is not considered an object of Income Tax (PPh), meaning heirs are not required to pay Income Tax when transferring the ownership of inherited assets. This clarification is reinforced under Minister of Finance Regulation No. 81 of 2024.

For many years, the public has assumed that transferring rights to land or buildings due to inheritance is automatically subject to Income Tax. In reality, Final Income Tax applies only to taxable transfers such as sales or other transactions, not to inheritance.

SKB Required for Official Tax Exemption.

Although inheritance is exempt from Income Tax, heirs are still required to obtain a Tax Exemption Certificate (Surat Keterangan Bebas/SKB) for PPh to ensure the transfer of title proceeds without any tax charges. The SKB can be requested through the nearest Tax Office (KPP) or online via the taxpayer’s coretax account at coretaxdjp.pajak.go.id.

To obtain the SKB, applicants must submit the “Statement of Inheritance Distribution”, as stipulated in PER-8/PJ/2025 Article 101 paragraph (5)(c). The issuance process is relatively fast, taking a maximum of 3 working days once all documents have been verified.

Distinguishing PPh from BPHTB: A Common Source of Confusion.

The DJP reminds the public to clearly differentiate between the following types of taxes:

• Final Income Tax (PPh Final). A central government tax that can be exempted through the SKB.
• BPHTB (Duty on the Acquisition of Land and Building Rights). A regional tax that still applies, referring to the Regional Financial Relations Law (Law No. 1 of 2022). This means that even though inheritance is exempt from PPh, BPHTB must still be paid in accordance with the local government's regulations.

Inheritance Is Not Taxed, Provided Procedures Are Followed.

Under the latest regulations, the government confirms that inheritance is not subject to Final Income Tax. Heirs simply need to obtain the SKB PPh to avoid unnecessary charges. The DJP also encourages the public to access information through www.pajak.go.id, Kring Pajak 1500200, or other official DJP channels for further guidance.