OJK Tax Relaxation Proposal for Infrastructure Industry

INDUSTRY.co.id - Jakarta - The Financial Services Authority (OJK) proposes to the Directorate General of Taxation to relax the tax on several investment instruments in the capital market in order to support infrastructure development to attract investors.

"With the relaxation of taxation on capital market instruments in infrastructure assets can grow more rapidly, more competitive, and attract investors both foreign and domestic," said Chief Executive of OJK Capital Market Supervisor, Hoesen in Jakarta, Friday (17/11/2017 )

He conveys the proposed capital market products of taxation of corporate taxation, limited investment mutual funds (RDPT), real estate investment funds (DIRE), asset-backed securities (EBA), and infrastructure investment funds (Dinfra).

For corporate bonds, he proposed a tax reduction to be equated with Government Securities (SBN) to 15 percent from the previous 20 percent.

In addition, he said, for RDPT investing in Equity Securities through special purpose company (SPC). Suggested dividends from SPC to RDPT are not taxable, since SPC is considered a unity with RDPT.

Meanwhile, for DIRE, he added that OJK proposed a decrease of tariff on land and building rights (BPHTB). While the EBA, it is proposed that the tax treatment be the same for all similar products.

And regarding Dinfra, Hoesen said the need for tax incentives is likened to Collective Investment Contract (KIK) DIRE. In this case, Dinfra invests in bonds, so taxation is treated the same as mutual funds.