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SPV rule will lure more tax amnesty participants in Sept: Kadin
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Chamber of Commerce and Industry (Kadin) chairman Rosan P. Roeslani answers journalists' questions at the Trade Ministry's office on Wednesday. (JP/Anton Hermansyah)
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mid the slow progress of the tax amnesty program, the Indonesian Chamber of Commerce and Industry (Kadin) predicts a swell in asset declarations and repatriations in September after the new special purpose vehicle (SPV) rule is issued.
Kadin chairman Rosan Perkasa Roeslani said many businesspeople were waiting for the SPV rule to facilitate the smooth transfer or declaration of their offshore assets.
"The first period ends on Sept. 30, the businesspeople will be hurry to catch the cheapest tariff rate," he said at the Trade Ministry’s office in Jakarta on Wednesday.
Drafted last Friday, the SPV rule is currently registered to the Law and Human Rights Ministry. The rule's measures allow the removal of ownership layers on a SPV, liquidation of a SPV and mergers with local companies, as well as accommodating the valuation of back-to-back loans.
“Many businesspeople store their assets using SPVs or shell companies with multiple layers of ownership and nominees,” Rosan explained with reference to why repatriating or declaring assets took time.
As of Aug. 9, the total declaration of assets reached Rp 9.27 trillion (US$699 million) while the government booked Rp 193 billion in tax revenue. In the first period, the declaration tax is 4 percent, and will increase to 6 percent in the second period. (ags)
