ABSTRACT

One of the assessment components capable of influencing the Ease of Doing Business index regarding the process of transferring land and/or building rights is tax payment. However, the provisions concerning income tax on the transfer of land and/or building rights, as stipulated in Government Regulation Number 34 of 2016, have resulted in a shift in the timing of the tax payable. This potentially impedes property business activities conducted by developers. Based on the foregoing, the researcher is interested in conducting research regarding the government's urgency in establishing the imposition of Income Tax within the Sale and Purchase Binding Agreement as regulated in Government Regulation Number 34 of 2016, considering the obstacles that may arise related to the property business since the change in the payable time of final income tax on said land and/or buildings. Additionally, the researcher intends to examine and elaborate on the appropriate imposition of Final Income Tax to achieve the principles of legal certainty and justice in the field of taxation without impeding the business activities of business actors, thereby aligning with one of the government's focuses: increasing the Ease of Doing Business (EoDB) index. This research is descriptive-analytical in nature, employing a normative juridical approach. The results indicate that the government's urgency in establishing the imposition of Income Tax on the Transfer of Land and/or Building Rights bound within a Sale and Purchase Binding Agreement is to prevent tax avoidance and serve as a means to accelerate state revenue. The imposition of Income Tax on the transfer of land and/or building rights that are still bound within a Phased Sale and Purchase Binding Agreement does not reflect the principle of simplicity in tax collection and constitutes a deviation from taxation norms, thereby creating legal uncertainty for developers as business actors. 

KEYWORDS: Income Tax, Sale and Purchase Binding Agreement, EoDB, Legal Certainty