New capital market taxation system needs clarification
New capital market taxation system needs clarification
JAKARTA (JP): The president of the Jakarta Stock Exchange
(JSX), Hasan Zein Mahmud, said yesterday that the definition of
shares owned by founders under the new capital market taxation
system still needs clarification.
"The difference in the perception of shares owned by founders
could hamper the enforcement of the new tax regulation," he said
in response to the introduction of the new capital market tax.
Hasan said there should be clearer guidelines about the
definition of the shares owned by founders, which do not only
consists of old shares but also rights and bonus shares.
The government last week issued 29 regulations to support the
implementation of the new tax laws, including a ruling on the
introduction of the new capital market tax.
Under the new capital tax regulation, the tax rate is set at
0.1 percent of the gross transaction value, except for the sales
of shares owned by founders, which are then subjected to an
additional five percent.
The value of shares mostly increase by four to seven times
after the initial public offering.
The capital market tax was previously based on capital gains,
with rates of 15 percent for gains of up to Rp 10 million, 25
percent for those above Rp 15 million to Rp 50 million and 35
percent for those above Rp 50 million.
Hasan described the new tax law, except for the lack of
clearer guidelines on terms of old shares, as not only being more
practical but also more acceptable than the previous one.
Benefit
"The new tax gives founders far more benefit despite the
higher rate," he told The Jakarta Post of the positive impact of
the new tax system.
He said that the 0.1 percent rate for the sales of shares
owned by the investing public is also quite reasonable even
though it will also be imposed on transactions made at a loss.
All transactions, either profitable or otherwise, are subject
to tax under the new system.
M. Nababan, an official of the representative office of the
Surabaya Stock Exchange (SSE), said that the East Java-based
market will also immediately enforce the new tax system.
He said the new tax, which will be also imposed on
transactions made at a loss, is also expected to discourage
"speculative" trading.
"We hope that investors will no longer carry out cut loss
trading," he said of the benefit of the new capital market tax.
Tito Sulistio, president of the Over-the-Counter market, said
earlier that the introduction of the new tax system would also
serve as an important facilitator of stock trading activities
this year.
Monthly transactions reach more than Rp 2.5 trillion (US$.16
billion) on the JSX and Rp 6 billion ($2.8 million) on the SSE.
(hen).