In Indonesia, inheritance received from parents is not subject to Income Tax (PPh). According to tax law, inheritance is one of the incomes that is excluded from income tax objects. This means that inheritance recipients do not have to pay taxes on assets received from their deceased parents. However, there is an obligation to report the inheritance in the Annual SPT (Notification Letter) as part of reporting the assets owned.

Although inheritance is free from Income Tax, there are several other taxes that may be associated with the inheritance process. One of them is the Land and Building Rights Acquisition Fee (BPHTB). If the inheritance includes property such as land or buildings, the recipient of the inheritance may need to pay BPHTB when processing the change of name or transfer of rights to the land and building. The amount of BPHTB is usually calculated based on the acquisition value of inherited land and buildings.

Apart from that, it is also important to pay attention to the deceased's outstanding tax obligations. The inheritance received may be tied to the deceased's outstanding tax obligations. In this case, the heirs are responsible for completing the tax obligations before the inheritance can be fully transferred. By understanding the various tax aspects related to inheritance, inheritance recipients can ensure that the inheritance process runs smoothly and under applicable legal provisions.