TheJakartaPost
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Considering tax discounts for issuers
When companies go public, they are required to disclose their financial statements.
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The incentive has been offered to increase the number of companies listed on the Indonesia Stock Exchange (IDX) from the current 587 to 1,000. (Shutterstock/File)
T
he government will revise the provision of the 5 percent income tax discount (on the normal corporate income tax of 25 percent) for publicly traded companies that have issued a minimum of 40 percent of their shares to the public.
This incentive has been offered to increase the number of companies listed on the Indonesia Stock Exchange (IDX) from the current 587 to 1,000.
But the tax incentive, as stipulated in Government Regulation No. 81/2007, seems to have been not so effective in wooing more initial public offerings (IPO), and has caused a loss in tax receipts.
In 2008, only 60 companies participated in the tax incentive program and this figure has fluctuated slightly over the past decade.
