**4. Conclusion**

The transfer of property ownership through land and building exchange transactions is evidenced by the existence of a Deed of Exchange made by the Land Deed Making Officer, before the signing of the exchange deed the parties or taxpayers are required to pay Income Tax on additional income from the transfer of rights to land and buildings through exchange transactions, if income tax is reported to the Tax Service Office after it has been carried out examination and there is evidence of underpayment of taxes or there is unreported income tax such as additional money of Rp. 4,000,000,000-, (four billion rupiah) which is the result of obtaining rights in the form of land and buildings from exchange transactions, then the Director General of Taxes has the authority to issue a Tax Assessment Letter to taxpayers for underpaid or unpaid taxes and added sanctions administrative in the form of interest of 2% per month on the actual amount of tax payable as stipulated in Article 13 of Law Number 6 of 1983 concerning General Provisions and Tax Procedures, but if the taxpayer does not get an underpayment tax assessment letter from the Director General of Taxes and after 10 years from the time of tax payable, then the tax underpayment along with administrative sanctions in the form of interest of 2% per month does not need to be paid and Income tax reporting is considered correct.

And taxpayers are required to pay Land and Building Rights Acquisition Duty Tax on the acquisition of land and building rights exchanged, proof of tax deposit is proven by a regional tax return, if the reported tax is underpaid or there is a tax calculation error due to the e-BPHTB system such as tax reporting Land and Building Rights Acquisition Duty for the second Unit Shophouse is subject to a reduction in the Acquisition Value of Non-Taxable Tax Objects The tax in which the reduction is not in accordance with the provisions of Article 46 paragraph 5 of Law Number 1 of 2022 concerning Financial Relations Between the Central Government and Regional Governments. To improve the situation, the obligation as a taxpayer is underpayment or miscalculation of the application of the Acquisition Value of Non-Taxable Tax Objects that are not in accordance with the provisions of the laws and regulations, taxpayers can report and make their own corrections for the underpaid tax to the Regional Revenue Office. To ensure optimal tax collection and minimize the reduction of state tax revenues, the way forward calls for wider and directed public socialization of procedures for submitting income tax and duty tax on land and building rights acquisition duties on exchange transactions.

*Analysis of Transfer Tax Imposition on Properties Exchange in Indonesia DOI: http://dx.doi.org/10.5772/intechopen.112430*
