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Jakarta Post

Govt issues rule on shell companies, aims for asset repatriation

  • Ayomi Amindoni
    Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Mon, August 22, 2016   /  10:12 pm
Govt issues rule on shell companies, aims for asset repatriation Finance Minister Sri Mulyani walks into the Finance Ministry in Jakarta on her first day in office on July 27, greeted by the ministry's employees. (Antara Foto/M Agung Rajasa)

The government has issued a supporting regulation for the tax amnesty aiming to lure back Indonesian assets and business that are kept through special purpose vehicle (SPV) companies abroad.

Finance Minister Sri Indrawati said the Finance Ministerial Regulation was issued on Friday to persuade holders of such assets to join the tax amnesty program by offering value-added tax exemptions for those who transfer their assets and financial businesses back to the country.

"With the tax amnesty, taxpayers are expected to declare or repatriate their assets through the overseas SPV companies, as well as shift their business base to Indonesia," she said in Jakarta on Monday.

Based on the Tax Amnesty Law and Finance Ministerial Regulation No. 118/2016, taxpayers who transfer their assets in the form of shares, land and buildings under the amnesty will be granted value-added tax exemptions, as long as they do so by Dec. 31 at the latest.

"Tax payers must reveal the SPV and the assets owned through the SPV," Sri Mulyani said.

Earlier, the Finance Ministry issued Regulation No. 122/2016 on procedures of investment transfer and placement outside the financial market, which allows asset repatriation to be put into several non-financial investment instruments, including pure gold bars. (ags)

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