OJK: Postpone Increase on Tax on Mutual Funds and Bonds

Fathan Qorib, Andin Aditya Rahman

The Financial Services Authority (OJK) is currently trying to persuade the Government to postpone its plan to raise the tax rate on mutual funds and bonds to 15 percent. The Government plans to implement this policy in 2014.

“We request that the increase to 15 percent be postponed,” stated Nurhaida, a member of the board of commissioners of OJK in Jakarta on, Wednesday.

According to Nurhaida, a 15 percent tax rate  is too high. This will undermine the efforts being made to develop capital market products that aim to maintain the liquidity of the Indonesian capital markets.

However, if the Government is s going to go ahead as planned, Nurhaida hoped that the raise in tax rate on mutual funds and bonds will be gradually increased.

“Hopefully in 2014 it will still be at 5 percent,” she said.

The Government’s plan to raise the tax rate on mutual funds and bonds to 15 percent by 2014 is set out in Article 3 (d) of Government Regulation No. 16 of 2009 (Regulation).

The Regulation sets the tax rate for the 2009-2010 period at zero percent and for 2011-2013 at five percent. For the 2014 and the following years, the tax rate is set at 15 percent.

Unless the regulation is amended by the Government, this will be the last increase in  tax on mutual funds and bonds.

(hot/keld)

Fathan Qorib, Andin Aditya Rahman

The Financial Services Authority (OJK) is currently trying to persuade the Government to postpone its plan to raise the tax rate on mutual funds and bonds to 15 percent. The Government plans to implement this policy in 2014.

“We request that the increase to 15 percent be postponed,” stated Nurhaida, a member of the board of commissioners of OJK in Jakarta on, Wednesday.

According to Nurhaida, a 15 percent tax rate  is too high. This will undermine the efforts being made to develop capital market products that aim to maintain the liquidity of the Indonesian capital markets.

However, if the Government is s going to go ahead as planned, Nurhaida hoped that the raise in tax rate on mutual funds and bonds will be gradually increased.

“Hopefully in 2014 it will still be at 5 percent,” she said.

The Government’s plan to raise the tax rate on mutual funds and bonds to 15 percent by 2014 is set out in Article 3 (d) of Government Regulation No. 16 of 2009 (Regulation).

The Regulation sets the tax rate for the 2009-2010 period at zero percent and for 2011-2013 at five percent. For the 2014 and the following years, the tax rate is set at 15 percent.

Unless the regulation is amended by the Government, this will be the last increase in  tax on mutual funds and bonds.

(hot/keld)

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