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Indonesia eyes US$602 million income revenue from asset revaluation
Unnoticed: A banner promoting the omission of administrative sanctions for 2015 tax arrears is seen off Jl
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Unnoticed: A banner promoting the omission of administrative sanctions for 2015 tax arrears is seen off Jl. Gunawarman, South Jakarta, on Jan. 1. At least 43 state-owned companies plan to conduct asset revaluation this year, contributing a total of US$602 million in tax income for the government. (thejakartapost.com/Wienda Parwitasari) (thejakartapost.com/Wienda Parwitasari)
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span class="inline inline-center">Unnoticed: A banner promoting the omission of administrative sanctions for 2015 tax arrears is seen off Jl. Gunawarman, South Jakarta, on Jan. 1. At least 43 state-owned companies plan to conduct asset revaluation this year, contributing a total of US$602 million in tax income for the government. (thejakartapost.com/Wienda Parwitasari)
The State Owned Enterprises (SOEs) Ministry is eyeing an additional tax revenue of Rp 8.4 trillion (US$602 million) sourced from the asset revaluation that several state owned firms have planned to work on this year.
To date, 43 state-owned companies, along with 19 of its subsidiaries, have confirmed the plan, jacking up their total asset value by Rp 310 trillion to Rp 1.35 quadrillion, said SOEs Minister Rini Soemarno.
"Several state owned companies are planning to hold asset revaluation this year. With the tax rate set at 4 to 6 percent, there will be an additional Rp 8.4 trillion to Rp 10.61 trillion in tax revenue," she said in a press conference in Jakarta on Tuesday.
Through asset revaluation, Rini added, the ministry targets total assets of all state owned companies to reach Rp 6.24 quadrillion. PT PLN will be the top state-owned company in terms of assets, she said.
As of 2015, the total assets of 118 state owned companies stand at Rp 5.39 quadrillion, compared to Rp 4.57 quadrillion in 2014.
The government has offered tax incentives for asset revaluation. Through the fifth economic policy package, a company that files for an asset revaluation in the first half of 2016 will be subject to 4 percent income tax, 6 percent in the second half.
Prior to the release of the policy package, the normal tax income rate for asset revaluation was 10 percent.
Darussalam, taxation expert from the University of Indonesia, projects that asset revaluation could increase a company's equity, helping them to meet with the government's rule obliging private firms to maintain a good debt-to-equity ratio amid increasing foreign debt.
And in return, there will be additional tax income for the government when companies apply to revalue their assets this year. (ags)(+)
