JAKARTA. The government is cutting the tax on real estate investment trusts (REITs) to boost local use of the financial mechanism that employs commercial properties like malls, hospitals, warehouses, hotels and office buildings as underlying assets. Indonesia only had two REITs created in the country in the past nine years, namely Lippo Malls Indonesia Retail Trust (created in November 2007) and DIRE Ciptadana Properti Ritel Indonesia (created in November 2012). "Some local businessmen have created REITs in neighboring countries, but we saw only one REIT created in Indonesia after 2012. The higher tax compared to in neighboring countries is the main problem," said Coordinating Economic Minister Darmin Nasution in Jakarta on Tuesday.
Govt cuts taxes on REIT's
JAKARTA. The government is cutting the tax on real estate investment trusts (REITs) to boost local use of the financial mechanism that employs commercial properties like malls, hospitals, warehouses, hotels and office buildings as underlying assets. Indonesia only had two REITs created in the country in the past nine years, namely Lippo Malls Indonesia Retail Trust (created in November 2007) and DIRE Ciptadana Properti Ritel Indonesia (created in November 2012). "Some local businessmen have created REITs in neighboring countries, but we saw only one REIT created in Indonesia after 2012. The higher tax compared to in neighboring countries is the main problem," said Coordinating Economic Minister Darmin Nasution in Jakarta on Tuesday.