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‘No tax cut for interests of foreign exchange earnings’
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Finance Ministry fiscal policy head Suahasil Nazara. (kompas.com/ Ahmad Fauzi )
T
he Finance Ministry is revising a regulation to provide incentives for exporters to put their foreign exchange earnings into the country’s financial system, but an official has said the incentive would not be a tax cut for the interests of the depositors.
Finance Ministry fiscal policy head Suahasil Nazara said the incentives will be stipulated in the revision of Finance Ministerial Regulation No. 26/010/2016 on the discount tax rate.
Under the new rule, exporters would be able to take advantage of a lower final income tax if they deposit their money in a domestic bank or transferred their funds to other domestic banks.
“If exporters maintain their deposits in banks or transfer deposits to other banks, they can still take advantage of the lower rate,” Suahasil said recently as quoted by kontan.co.id.
The existing regulation (No. 26/2016, Paragraph 2 and Article 3) states that lower income tax rates for foreign exchange earnings are invalid after the exporters extend the deposits in banks or transferred funds to other banks.
In addition to the revision of the finance ministerial regulation, Bank Indonesia will also issue a separate regulation on the placement of foreign exchange earnings from exports of natural resources into the Indonesian financial system.
The planned BI regulation would rule the procedure for banks to keep the foreign exchange earnings from exports of natural resources. “As an example, the accounts would have a specific code,” Suhasil added. (bbn)
