JAKARTA. The central government has called on municipal governments to cut the building and land acquisition tax (BPHTB) by a maximum 2,5% and give special tax treatment to Real Estate Investment Trusts (REITs) to boost its competitiveness. Compared to Singapore, where the total tax for REITs is only 3%, Indonesia charges a tax of more than 8% on similar instruments. It consists of a 5% income tax from the central government and a 3% BPHTB imposed by municipal governments. "We have cut the income tax to 5%, but some municipal governments are still reluctant to cut their BPHTB," Coordinating Economic Minister Darmin Nasution told thejakartapost.com after meeting with the President and municipal government representatives in the Presidential Office on Monday.
Govt to give local REITs special tax treatment
JAKARTA. The central government has called on municipal governments to cut the building and land acquisition tax (BPHTB) by a maximum 2,5% and give special tax treatment to Real Estate Investment Trusts (REITs) to boost its competitiveness. Compared to Singapore, where the total tax for REITs is only 3%, Indonesia charges a tax of more than 8% on similar instruments. It consists of a 5% income tax from the central government and a 3% BPHTB imposed by municipal governments. "We have cut the income tax to 5%, but some municipal governments are still reluctant to cut their BPHTB," Coordinating Economic Minister Darmin Nasution told thejakartapost.com after meeting with the President and municipal government representatives in the Presidential Office on Monday.