ABSTRACT

THE LEGAL STANDING OF OWNERSHIP RIGHT TRANSFER IN A

SALE AND PURCHASE CONTRACT PURSUANT TO THE
GOVERNMENT REGULATION NUMBER 34/2016 ON INCOME TAX

A sale and purchase contract (PPJB) is a preliminary agreement made by a notary

before a sale and purchase takes place and recorded in a deed by Land Title Registrar
(PPAT) because it does not meet all requirements. PPJB is related to article 1 paragraph (1)
letter b of the Government Regulation No. 34/2016 on income tax stating that it is final that
PPJB of land and/or building and its changes has income tax payable. However, PPJB is
practically made without paying income tax. This is a normative juridical research which
refers to the legal norms in the prevailing laws and regulations. It uses descriptive
analysis which provides detailed and systematical description of the research problems.
The data are only quality legal materials which are analyzed by employing qualitative
method.

It is found out by the Notary that the PPJB is made before a sale and purchase take
place. In fact it should have made by the Land Title Registrar after all requirements are
fulfilled. The Government Regulation No. 34/2016 on income tax has not yet been
maximally implemented because the procedures and term of the contract are not obviously
regulated in details. The PPJB made pursuant to Customary Law, Land Act (UUPA), Civil
Law, or Notarial Act (UUJN) is legally valid as long as it is made in accordance with the
form and procedures regulated
in the Law.

It is concluded that the PPJB which does not pay for income tax is valid before the
lay as reviewed from Civil Law, Customary Law, Notarial Act and Land Act as long as is
made in accordance with the form and procedures regulated in the prevailing laws and
regulations. It is suggested bas on the research results that it is necessary to revised the
Government Regulation No. 34/2016 on Income Tax, especially to regulate the standard
market value of an object, terms of income tax payment and income tax payment for the
PPJB which is paid with installment or gradually, legal sanctions for those who violate the
regulation, and the role of notary in the implementation of income tax payment which is
final for PPJB.

Keywords: Contract, Income Tax