Tax Incentive, Focus Of Economic Policy Package Volume V
The Government has issued the Economic Policy Package Volume V on October 22, 2015. This was done in order to stimulate the domestic economy. This policy package focuses on government incentives related to tax reduction, the incentive for the assets revaluation of SOEs and private owned with a final tax rate of 3%-6%. This economic policy package will continue to strengthen the economic stability amid the world economic slump which also affected Indonesia.
Government in the Economic Policy Package Volume V will elimination of double taxation for financial instruments in the form of Collective Investment Contract of Real Estate Investment Funds or Real Estate Investment Trusts.
Minister for Economic Affairs, Darmin Nasution said, there are some things that are contained in this fifth policy package.
a. The first thing is a matter of tax relief incentives in the revaluation of company assets, both in the State Owned Enterprises (SOEs) and private parties. Darmin said, during the company does not want to do the revaluation of assets because the tax rate is high enough. And he said, if the asset revaluation is done, in particular for property assets, it can make the value of the assets of the company increased.
b. For taxpayers (WP), when submitted the revaluation of assets until December 31, 2015, the amount of the special rate of final income tax revaluation which normally 10% to be 3%. If submitted in the period January 1 to June 30, 2016, the amount of the rate is 4%. When submitted in July 1 until December 31, 2016, the amount of the special rate of final income tax revaluation to be 6%.
c. The second thing in this package volume 5 is the elimination of double taxation for collective investment contract of real estate investment funds or commonly known as REITs (Real Estate Investment Trust).
“The consistency of the government at this time was to give a strong impression that the government’s intention to carry out a fundamental transformation of the national economy, so that the public and businesses know that we will continue to work to reform regulation and bureaucratization,” said the President.
In short, the main point of this fifth package is tax incentives for the revaluation of assets and investment instruments REIT will be free from double taxation.
Source : http://www.voaindonesia.com