Tax Amnesty in Indonesia : The Ideal Moment to Invest in Property !
It has been a few months since Indonesian investors were waiting for one thing: that the government passes the tax amnesty bill. It now has officially been done since 16 July 2016: each Indonesian national can repatriate their offshore funds in exchange of a tax varying between 2% and 5%.
Forgiveness is the watchword !
The Indonesian government did it, from now on tax amnesty is on in Indonesia. Each Indonesian national who owns offshore funds can repatriate their goods without encountering difficulties with the national authorities if they accept to pay a tax on their total offshores funds which vary between 2% and 5%, in the function of the period when they will repatriate their funds.
For example, if you repatriate your goods between the 1st of July and the 31st of September 2016, you will pay only 2% tax against 3% between the 1st of October and the 31st December 2016. It is also important to mention that this measurement is temporary as after the 31st of March 2017, it will be impossible to repatriate goods without being charged by the Indonesian government.
Collateral benefits of the tax amnesty
The tax amnesty wasn’t announced alone because other measurements must complement this law. In fact, the Indonesian Central Bank has already explained that access to the credit will be easier in the following month and the Rupiah will still gain ground on dollars. So two good news to invest in property. Lastly, the Indonesian government will implement new policies to spur different sectors including real estates.
Some interesting prospects about Property
Thanks to the tax amnesty, the Indonesian Central bank expects to repatriate around 42 billion dollars. Regardings the property sector, numerous pundits estimated that tax amnesty could boost the high-end property market by 5-10 percent next year, while Tulus Santoso Brotosiswojo, a director at PT Ciputra Development Tbk, expects at least 20 percent of the repatriated funds to be invested in the overall property sector. Residential sales should rise by around 10 percent this year as a result of the tax reprieve, mortgage rule, and easier credit conditions, said Anthony Yunus, a property analyst at Nomura Holdings Inc. in Jakarta.