Friday, May 25, 2012

INDONESIA - TAXATION - Tax for Capital Gain of Shares Raised to 2.5%

www.theindonesiatoday.com -JAKARTA, Indonesia Today - Tax General Directorate plans to impose 2.5% tax to capital gain from shares transaction undertaken by the founder of listed companies, compared to current 0.5% tax, Bisnis Indonesia reported this morning.

Fuad Rahmany, Tax Directorate General, said his office is now preparing this plan which will be formulated in the government regulation.

Currently, the tax for capital gain of shares transaction is stipulated on PP No. 14/1997 regarding Income Tax over Income of Shares Transaction at Stock Exchange. (source)


"This tax will not be imposed to portfolios owners," Fuad said, noting portfolios owners have been obliged to pay tax over their transaction of shares.
Airlangga Hartarto, chairman of Indonesian Listed Company Association (AEI), said this new tax plan would become a disincentive for capital market industry though the tax imposed is cut to 2.5% from earlier plan 5%.
The House of Representatives (DPR) urge the government to increase the ratio of tax revenue to 16% of gross domestic product (GDP) by 2013. (hans@theindonesiatoday.com)

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