In the midst of heated debate about the position of Governor of Yogyakarta Special Region in the context of the discussion draft Law (Draft) The specialty of Yogyakarta, the debate about the imposition of a tax of 10 percent of consumers a simplified food stalls as "Warung Tegal" (Warteg) is not less crowded and confiscate attention of the people of Jakarta and surrounding areas. As usual, the news about the taxation of food services was already excited everywhere despite the new rules implemented next year.
In order not to deviate to the debate about the gap between large and small dining restaurants underprivileged, Governor Fauzi Bowo confirmed that the taxation of small food stalls or warteg only limited discourse. We give an appreciation of the attitude of the governor who quick to respond to this matter. Why? If not quickly be anticipated, the question of tax on food stalls can be blurred and her group opposes the small community with those who haves, and it is dangerous.
Regarding the application of real-taxes already imposed on restaurants or restaurant and cafe-society directly interpreted by a variety of opinions, and ends against the attitude of the city administration which was considered more burdensome small community groups. According to the Head of Regulation and Tax Counseling Office of DKI Jakarta, Susilo Arifin, imposition of a tax of 10 percent of the food stalls are often called "warteg" it's because these types of businesses considered to have entered a prerequisite subject to income tax as stipulated in Law No. 28 of 2009 on Regional Taxes and Levies.
But, who entered the category of taxpayers is a provider of food and beverage business which has revenues of 60 million dollars per year. Taxes will apply to all types of restaurants that have a turnover of 60 million dollars per year or about 5 million rupiah per month, or about 167,000 rupiah per day. Not only warteg, this tax also will apply to owners of restaurants and related business fields.
Members of the DPRD DKI Jakarta is actually not one word about this. Some refused and some agree. Vice Chairman of DPRD DKI, Triwisaksana, who is also chairman of the Legislation Board (Balegda) claimed to have heard expressions of concern from a number of businessmen who voiced objections warteg. Apart from food stalls entrepreneurs, a number of observers and the public expressed their objection. Related pros and cons of this issue, wise step taken by Jakarta Governor Fauzi Bowo after assert that it is still a discourse.
Governor proposed a study of factors impact the amount that would arise if the policy is enforced. Therefore, Fauzi said will require an integrated report of the Assistant Economic and Tax Office (DPP) DKI. He promised not to impose policies that do not favor the small people. In this regard, we wish to remind that our society in general are very vulnerable in accepting rumors or news that is uncertain, especially regarding a regulation that has a direct impact on them.
It is fitting the relevant parties, whether provincial government officials, the parliament, observers, or those who may be affected by new regulations, checking the truth of such information. In many cases, the news is skewed, uncertain, and perhaps also the later diembuskan tendentious news, negative impact or even cause turmoil in society. If the turmoil that has turned into a destructive action, will be even harder to prevent it.
Therefore, we judge good enough attitude shown Jakarta Governor who ordered his staff to the Koran in depth discourse plans or tax pengenaaan catering or food stalls this. When the results of the study was agreed upon and announced to the public it deserves, just choose the right time to announce it. The next step is to disseminate sustainable for a common understanding can be well received.
Source : Jakarta Newspapers, December 4, 2010
Tuesday, December 7, 2010
Foreign funds are taxed Difficult???
JAKARTA - Plan for the taxation of any flow of foreign funds that entered the Indonesian capital market assessed will be difficult to be realized.
In addition to its domestic market system of open markets, foreign investors have not recorded in the list of taxpayers in Indonesia.
"Given the fact that two, would be very difficult to realize that diembuskan discourse by the government," said Lily Widjaja, Chairman of the Association of Indonesian Securities Companies (APEI), in Jakarta, Friday (3 / 12).
Because, even if it is realized, the government has no concrete data that can be used as a reference to verifi cation of their presence one at a time. "Because there are huge numbers and spread.
Plus they do not enter directly, but through representatives such as the Fund Manager or securities firms (broker), "said Lily. Therefore, capital market authorities set a transaction tax of 0.1 percent.
"That's sometimes still difficult to be maximized," said Lily. However, it does not mean the capital market authorities could be lulled by the swift flow of foreign capital (capital infl ow) that enter the domestic stock market.
As stakeholders, the Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK) and the Self Regulatory Organizations (SRO) charged with creating a climate attractive capital markets and transparent.
"Instead of restricting capital inflow or make them uncomfortable to be in Indonesia," said Gema Merdeka Goeryadi, an analyst at UOB Kay Hian Securities in Jakarta, yesterday.
As is known, later, Bank Indonesia (BI) berwacana regulate the flow of foreign funds into Indonesia.
It was considered important in order to maintain the national economy remains stable and is not filled by short-term capital flows. One of the proposed discourse, and may be taken, is to limit the flow of foreign capital into capital market instruments, by imposing progressive taxes.
"Hot Money" In response, the stock exchange authorities were agreed. The government felt no need to limit the flow of funds that go to the Indonesian capital market. In addition to the Act (Act) that has not been possible, it would make Indonesia the world's capital markets fail to thrive.
"Because the Central Bank Act we still embrace capital free flow system, which means that foreign funds flow freely in and out anytime.
So even if we limit, it means we are against the law. Moreover, foreign contributions are still quite large in the Indonesian capital market "said Ito Warsito, President Director of Indonesia Stock Exchange (BEI).
In addition, his side looked at the swift flow of foreign funds have become a threat. "Because, in the capital markets that investment over the medium and long term, and investment patterns of foreign investors was the main like that," said Ito.
Concerns about compliance with the local stock market by hot money (short-term capital flows) is likely small.
"If they want to invest for the short term, it is likely he would park it in the certification kat Bank Indonesia (SBI). So maybe the Bank Indonesia (BI) feel the need to manage, "Ito said. The trend was reinforced by the fact that happened during the crisis of 2008.
The portion of foreign ownership of shares in the domestic market was not too much changed. The decrease ranged from only 1 percent - 1.5 percent.
Even to this day no matter its value is still about 66 percent to 67 percent. That number has not changed much compared to the position of the last three years, "said Ito.
Thus, the withdrawal of foreign funds from domestic stock markets lately can not be used as a benchmark if they are short term oriented.
The proof, until September 2010, foreign transactions are still recorded a net foreign purchases amounted to 20.57 trillion rupiah. That's a sign that foreign investors still believe in the domestic capital market and yet there is a tendency to withdraw their funds in the near future
Source : Jakarta Newspapers, December 6, 2010
In addition to its domestic market system of open markets, foreign investors have not recorded in the list of taxpayers in Indonesia.
"Given the fact that two, would be very difficult to realize that diembuskan discourse by the government," said Lily Widjaja, Chairman of the Association of Indonesian Securities Companies (APEI), in Jakarta, Friday (3 / 12).
Because, even if it is realized, the government has no concrete data that can be used as a reference to verifi cation of their presence one at a time. "Because there are huge numbers and spread.
Plus they do not enter directly, but through representatives such as the Fund Manager or securities firms (broker), "said Lily. Therefore, capital market authorities set a transaction tax of 0.1 percent.
"That's sometimes still difficult to be maximized," said Lily. However, it does not mean the capital market authorities could be lulled by the swift flow of foreign capital (capital infl ow) that enter the domestic stock market.
As stakeholders, the Capital Market Supervisory Agency and Financial Institution Supervisory Agency (Bapepam-LK) and the Self Regulatory Organizations (SRO) charged with creating a climate attractive capital markets and transparent.
"Instead of restricting capital inflow or make them uncomfortable to be in Indonesia," said Gema Merdeka Goeryadi, an analyst at UOB Kay Hian Securities in Jakarta, yesterday.
As is known, later, Bank Indonesia (BI) berwacana regulate the flow of foreign funds into Indonesia.
It was considered important in order to maintain the national economy remains stable and is not filled by short-term capital flows. One of the proposed discourse, and may be taken, is to limit the flow of foreign capital into capital market instruments, by imposing progressive taxes.
"Hot Money" In response, the stock exchange authorities were agreed. The government felt no need to limit the flow of funds that go to the Indonesian capital market. In addition to the Act (Act) that has not been possible, it would make Indonesia the world's capital markets fail to thrive.
"Because the Central Bank Act we still embrace capital free flow system, which means that foreign funds flow freely in and out anytime.
So even if we limit, it means we are against the law. Moreover, foreign contributions are still quite large in the Indonesian capital market "said Ito Warsito, President Director of Indonesia Stock Exchange (BEI).
In addition, his side looked at the swift flow of foreign funds have become a threat. "Because, in the capital markets that investment over the medium and long term, and investment patterns of foreign investors was the main like that," said Ito.
Concerns about compliance with the local stock market by hot money (short-term capital flows) is likely small.
"If they want to invest for the short term, it is likely he would park it in the certification kat Bank Indonesia (SBI). So maybe the Bank Indonesia (BI) feel the need to manage, "Ito said. The trend was reinforced by the fact that happened during the crisis of 2008.
The portion of foreign ownership of shares in the domestic market was not too much changed. The decrease ranged from only 1 percent - 1.5 percent.
Even to this day no matter its value is still about 66 percent to 67 percent. That number has not changed much compared to the position of the last three years, "said Ito.
Thus, the withdrawal of foreign funds from domestic stock markets lately can not be used as a benchmark if they are short term oriented.
The proof, until September 2010, foreign transactions are still recorded a net foreign purchases amounted to 20.57 trillion rupiah. That's a sign that foreign investors still believe in the domestic capital market and yet there is a tendency to withdraw their funds in the near future
Source : Jakarta Newspapers, December 6, 2010
Monday, November 29, 2010
Standard Guidelines for Foreign Employees Salaries (Expatriate)
The development of global business now showing as if there are no more boundaries between countries, more and more Foreign Investment Company (PMA), which grows in Indonesia, prompting the rise of foreign workers (expatriates) who come and work in Indonesia.
The treatment of foreign employees is often different than the local employees. The existence of various facilities and benefits (such as housing allowances, children education allowances, leave allowances, allowances for transport to return to their home country and so on) are given to foreign employees cause trouble determining how much actual income and benefits received from the company, so often it is becoming trigger a tax dispute.
Not to mention if the foreign employee is a worker who sent directly by the parent company was in default of Foreign Affairs and his salary had been determined directly by the State party. In addition to tax will arise disputes with tax authorities (during tax audits) in terms of Income Tax Article 21/26, can also arise differences in perceptions about the amount of salary costs that can reasonably be deducted from net income in the Annual Financial Report Corporate Tax Return. The value of fairness is often associated with the term of Relationship as stipulated in Article 18 of the Income Tax Act.
Above considerations, the Director General of Taxation to set a standard salary for foreign workers as a guide in determining the reasonableness of the amount of salaries paid to foreign workers as stipulated in Decree of Directorate General of Taxation Number KEP-173/PJ./2002 dated May 22, 2002. Unfortunately, these guidelines are based on the situation in 2002 and until now there has been no change.
The meaning of the standard salary of foreign employees is stipulated in the amount of gross income KEP-173/PJ./2002 1 (one) month in connection with the work in the form of salary and other benefits received or accrued foreign employees who work in areas outside the field oil and gas drilling.
Guidelines for foreign employees' salaries as listed in Attachment of the Director General of Taxation Number KEP-173/PJ./2002 is used in case:
Use of standard guidelines for salaries of foreign employees should consider:
a. Nationality of foreign employees concerned;
b. Type of business of a foreign company where employees earn (the employer);
c. The position or office of foreign employees within the company where the related work.
questions that might arise from the establishment of standard guidelines for foreign employees' salaries, for example:
The treatment of foreign employees is often different than the local employees. The existence of various facilities and benefits (such as housing allowances, children education allowances, leave allowances, allowances for transport to return to their home country and so on) are given to foreign employees cause trouble determining how much actual income and benefits received from the company, so often it is becoming trigger a tax dispute.
Not to mention if the foreign employee is a worker who sent directly by the parent company was in default of Foreign Affairs and his salary had been determined directly by the State party. In addition to tax will arise disputes with tax authorities (during tax audits) in terms of Income Tax Article 21/26, can also arise differences in perceptions about the amount of salary costs that can reasonably be deducted from net income in the Annual Financial Report Corporate Tax Return. The value of fairness is often associated with the term of Relationship as stipulated in Article 18 of the Income Tax Act.
Above considerations, the Director General of Taxation to set a standard salary for foreign workers as a guide in determining the reasonableness of the amount of salaries paid to foreign workers as stipulated in Decree of Directorate General of Taxation Number KEP-173/PJ./2002 dated May 22, 2002. Unfortunately, these guidelines are based on the situation in 2002 and until now there has been no change.
The meaning of the standard salary of foreign employees is stipulated in the amount of gross income KEP-173/PJ./2002 1 (one) month in connection with the work in the form of salary and other benefits received or accrued foreign employees who work in areas outside the field oil and gas drilling.
Guidelines for foreign employees' salaries as listed in Attachment of the Director General of Taxation Number KEP-173/PJ./2002 is used in case:
- There are hints that the books are not true so that taxpayers can not be calculated the amount of tax that should be payable;
- Obtained evidence indicating that there is payment of salaries of foreign employees who are not entirely accounted for repayment of Income Tax Article 21 or Article 26;
- Examiner did not obtain data that can be used to determine the amount of salaries of foreign employees in the establishment of Tax Article 21 or Article 26 is owed.
Use of standard guidelines for salaries of foreign employees should consider:
a. Nationality of foreign employees concerned;
b. Type of business of a foreign company where employees earn (the employer);
c. The position or office of foreign employees within the company where the related work.
questions that might arise from the establishment of standard guidelines for foreign employees' salaries, for example:
- Does the company have to follow the guidelines in terms of determining its foreign employees' salaries?
- What if expatriates are receiving salaries below the standards established by the Director General of Taxation?\
- What if the foreign workers (expatriates) are actually received no salary at all from the company, because it was directly paid for by parent companies overseas?
- Are salaries paid and enjoyment (fringe benefits) given to employees of foreign companies (expatriates) can be deducted as a cost-cutting corporate income tax if the obligations of Article 21 / 26 are met?
Sunday, November 28, 2010
BI will propose tax incentives for Islamic banking
JAKARTA. Bank of Indonesia (BI) intends to propose some tax incentives that can be enjoyed by the Islamic banking industry. It is intended for the development of Islamic banking industry could be more motivated.
BI deputy governor Halim Alam said, the laws that exist today actually is sufficient to provide clarity on the tax status of some Islamic products. However, the law provides equality of treatment is merely an alias tax neutrality. While the form of special tax incentives for Islamic banking products have so far not yet exist.
"Some incentives may be given or are we going to propose to certain products in Islamic banks which we will prove through research risk is low, so later than what we send down his RWA can also lowered taxes so that is really clear. Maybe that's what we will propose (in government), "Halim said in Jakarta on Wednesday (24/11).
Halim says, with the provision of tax incentives for the Islamic banking industry, he believes it could provide a huge boost for Islamic banking is growing. BI in essence, says Halim, wanted to attempt furtherance of Islamic banking and Islamic economics could become a national agenda. Thus, it requires cooperation with various parties. No exception of government as the authorities manage tax issues.
Source : Kontanonline.com, 24 November 2010
BI deputy governor Halim Alam said, the laws that exist today actually is sufficient to provide clarity on the tax status of some Islamic products. However, the law provides equality of treatment is merely an alias tax neutrality. While the form of special tax incentives for Islamic banking products have so far not yet exist.
"Some incentives may be given or are we going to propose to certain products in Islamic banks which we will prove through research risk is low, so later than what we send down his RWA can also lowered taxes so that is really clear. Maybe that's what we will propose (in government), "Halim said in Jakarta on Wednesday (24/11).
Halim says, with the provision of tax incentives for the Islamic banking industry, he believes it could provide a huge boost for Islamic banking is growing. BI in essence, says Halim, wanted to attempt furtherance of Islamic banking and Islamic economics could become a national agenda. Thus, it requires cooperation with various parties. No exception of government as the authorities manage tax issues.
Source : Kontanonline.com, 24 November 2010
Friday, November 26, 2010
Starting 2011, Carriage of Goods subject to Customs Import
Metrotvnews.com, Jakarta: Ministry of Finance set import duties on goods carried by passenger, crew transportation, and crossing boundaries, as well as shipments that will apply from January 1, 2011 through the Minister of Finance Regulation No. 188/PMK.04/2010.
Head of Public Relations Bureau Kemenkeu, Yudi Pramadi, in a statement received here on Wednesday (24/11), states, of goods subject to import duties are personal items that brought the passengers, crew personal goods transportation facilities, or personal goods crossing borders, and / or merchandise beyond the customs value and / or a certain amount.
Officials of Customs and Excise set tariffs on imports of Passenger Personal Goods, Private Goods Carrier's Crew Facility, Boundary Passage of Private Goods, Trade in Goods, and Goods Shipment.
Determination of tariffs based on tariff of the goods concerned. In the case of imported goods intended for more than three types of goods, Customs and Excise Officers only one set of tariffs on goods the highest rate.
About understanding boundary crossing, Yudi says, is a resident or residing in the border regions and countries have identity cards issued by the competent authority and which will travel across borders at the border areas through cross-border Postal Supervisors.
The crew of the carrier means is any person who because of the nature of his work must be in transport facilities and come with a means of transport. While the passenger is every person who crossed the borders of countries, using means of transport but not the crew and not the Carrier Facility Boundary Passage.
Regarding the limit on the number of goods that are not subject to import duties (duty-free entry), Yudi said, for personal belongings of passengers by customs value at most U.S. $ 250 (FOB) per person or U.S. $ 1000 U.S. per family. Personal items that brought the crew of transportation with the customs value of maximum U.S. $ 50 (FOB) per person also get exemption from import duty.
As for the maximum value of private goods crossing borders are exempted from import duties divided by origin country. For Indonesia and Papua New Guinea at most U.S. $ 300 (FOB) per person for a period of one month, Indonesia and Malaysia: at most 600 RM (FOB) per person for a period of one month if past the mainland, while if past the ocean is set at lot 600 RM (FOB) per boat for each trip.
As for Indonesia and the Philippines established at most U.S. $ 250 (FOB) per person for a period of a month. Indonesia and Timor Leste at most U.S. $ 50 (FOB) per person per day.
While on the shipment, import duty exemption granted by the customs value of no more than 50 U.S. dollars (FOB) for each person per shipment. In the case of Goods Shipments exceed the customs value, the excess is charged import duties and taxes in order to import. (Ant / ICH)
Source : MetroTVNews.com, Wednesday, November 24, 2010 14:19 pm
Subscribe to:
Posts (Atom)