JAKARTA. Good news for the government bonds investors. The govt will remove the Income Tax (VAT) on the yield or profit of Government Securities. The Ministry of Finance is targeting the elimination of income tax will take into effect next year. The tax exemption is expected to smooth government debt strategy next year, and attract foreign capital inflow. The policy was designed after the Supreme Audit Agency (BPK) found an Rp 4.71 trillion of government-borne tax income on government financial report in 2015.
The Indonesia's govt bonds will be tax-free
JAKARTA. Good news for the government bonds investors. The govt will remove the Income Tax (VAT) on the yield or profit of Government Securities. The Ministry of Finance is targeting the elimination of income tax will take into effect next year. The tax exemption is expected to smooth government debt strategy next year, and attract foreign capital inflow. The policy was designed after the Supreme Audit Agency (BPK) found an Rp 4.71 trillion of government-borne tax income on government financial report in 2015.