Reconsidering the Effectiveness of Income Tax for Investments

By Editorial Team 13/08/2019
Summary

The government will keep granting various tax incentives by revising some regulations. One of them is government regulation (PP) on income tax for bond and mutual fund interest. Currently, the income tax for bond interest is regulated in PP No. 100/2013. The upcoming regulation will significantly reduce the income tax for bond interest from five percent to zero percent until 2020. However, the taxpayer should pay a 10 percent income tax from 2021 onward.

The revision will also grant the taxpayers from infrastructure funds (DINFRA), real estate investments trust (DIRE), and asset-backed securities (KIK-EBA) a similar allowance: zero percent income tax until 2020 and 10 percent from 2021 onward. The government will release the revised edition of PP No.100/2013 in the second week of August 2019.

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