Charity gets overseas no-tax status
Charity gets overseas no-tax status
Tantri Yuliandini, The Jakarta Post/Jakarta
Contributions to local charitable organization The Sampoerna
Foundation will now be tax deductible for United States and
Canadian companies and nationals, the foundation's spokesman
Hendri B. Satrio said on Friday.
"Unfortunately, because of the current local tax legislation,
such deductions are not available to Indonesia-based donors," he
told The Jakarta Post.
Hendri explained that tax-deductible status had been made
possible as the Sampoerna Foundation was recently made a partner by
the U.S.-based Give2Asia, an organization established by the Asia
Foundation, and recognized by the United States and Canadian
governments.
"(So now) these overseas private and corporate donors will
now be able to obtain tax deductions from their own governments
when they contribute some of their earnings or profits to
charitable activities in Indonesia," he said.
As of March 2005, the Sampoerna Foundation had provided
scholarships to 12,110 senior high school students, 1,000 junior
high school students, 97 undergraduate students, 93 master's
degree students and 10 MBA students studying abroad from across
Indonesia.
Besides the scholarship program, other programs supported by
the foundation include education programs for Aceh and North
Sumatra, and teacher and school quality improvements.
Both the United States and Canada make both corporate and
private charitable donations tax deductible provide the charity
in question is registered as such.
Sampoerna Foundation chief operating officer Elan Merdy said
that he hoped that with this latest development, funds from
international donors would flow in to assist the Foundation's
education programs.
As things stand, charitable donations are not tax deductible
in Indonesia, but it is hoped that proposed amendments to the tax
legislation currently under deliberation will permit such
deductions.
"If the Indonesian government wants to see immediate
contributions from the private sector for community services in
Indonesia, a tax deduction policy should be considered," Elan
said.