Tuesday, September 14, 2010

Kadin asks Corporate Income Tax to 16% Decrease

This demand for Indonesia's investment climate more attractive.

VIVAnews - Chamber of Commerce and Industry (Kadin) Indonesia proposed that the Income Tax (Income Tax) Tax - The Company currently available are derived from 25 percent to 16 percent. This demand for Indonesia's investment climate more attractive. Because, corporate income tax in Indonesia is much higher compared to neighboring countries.

Executor Duties Kadin chairman Adi Putra Tahir said, the decline in corporate income tax at least equal with neighboring countries, namely 16 percent. This must be done to attract investment funds ngendon in Singapore and Hong Kong.

"At least the same as Hong Kong and Singapore," said Adi in Jakarta, Monday, September 6, 2010.

According to Adi, lowering taxes can create greater tax revenue. Perhaps for the first year will be a decline, but for subsequent years will be increased as much revenue investment. "In theory if we lower the taxes, then we will receive greater," he said.

In addition to corporate income tax reduction, Chamber of Commerce also asked the government to abolish the current double tax dividends. When these dividends are subject to corporate income tax amounting to 25 percent and dividend tax amounting to 10 percent.

According to Adi, if the dividend tax removed, it will further attract investors. When this happens the dividend will be stored in banks and channeled into credit, so they avoid the tax. "People and companies that lend you credit is not taxable," he explained.

In addition, after Lebaran Chamber will meet with the Governor of Bank Indonesia to discuss the loan interest rate is still high. Ideally, according to Chamber of Commerce, credit interest no more than 4 percent of the deposit fund. "We are still 7-8 per cent credit interest on the deposit interest," he said.

Source- Vivanews.com -

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