Hurray! Local Investors Bond Income Tax Drops To 10% | 1NEWS

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This rate reduction is aimed at increasing the interest of local investors in the bond market.

Dream – The government encourages domestic investors to invest in the capital market, especially debt instruments (bonds). One way to do this is to reduce the income tax rate (PPh) by 5 percent from the original 15 percent to 10 percent.

This new income tax rate is stipulated in the revised Article 4 paragraph (2) of the Income Tax Law (PPh Law) on bond interest income. This provision also applies only to local investors.

As of August 31, 2021, the composition of retail domestic investors in Government Securities (SBN) is 4.5 percent. This figure is still small compared to 33.4 percent of banks, 14.5 percent of insurance and pension funds, and 22.4 percent of foreigners.

Quoted from the Cabinet Secretariat, Monday 6 September 2021, this policy is contained in Government Regulation (PP) Number 91 of 2021 concerning Income Tax on Income in the Form of Interest on Bonds Received or Obtained by Domestic Taxpayers and Permanent Establishments. The policy was signed by President Joko Widodo on August 30, 2021.

The issuance of this PP is in line with the government’s commitment to encourage reform of the ease of doing business, to create an equal income tax burden between bond investors, and to encourage the development and deepening of the bond market through tax policy.

“The issuance of this PP is proof that the Government continues to carry out structural reforms in order to increase investment and productivity, one of which is implemented through the Job Creation Act,” said Head of the Fiscal Policy Agency of the Ministry of Finance (BKF Kemenkeu) Febrio Kacaribu.

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Local Investors Needed for Development

Febrio hopes that this waiver can boost the role of domestic retail investors. On the other hand, large investments are required in financing development.

Based on the 2020-2024 RPJMN, the financing of investment needs is sought by deepening the financial sector, both bank and non-bank. For example, through increasing financial inclusion, expanding financial product innovation, developing infrastructure for the financial services sector, and optimizing alternative financing.

Febrio said that the increased participation of investors, both from within and outside the country, in the bond market could deepen the financial market.

“Access to financing for the financial sector for the business world is increasingly open and alternatives to non-APBN financing for development are increasing,” he said.

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Unprepared for ‘Boncos’ Investment Mental, Men Speeding and Hitting Pedestrians

Dream – Investment is a new thing that many people do to increase the money they have. The hope is that the money invested can provide higher profits than conventional products.

Unfortunately, most people have more profit and don’t care about the risks they will face. My heart is broken when I see the reality is not as sweet as expectations.

© Dream

This unpreparedness seems to be experienced by a man surnamed Liu when speeding with his luxury car, a BMW. Quoted from World of Buzz, Thursday, May 27, 2021, with a speed of 108 km per hour, Liu continued to drive the vehicle when the traffic light was red.

The vehicle he was driving hit a pedestrian on the road. This incident took place on May 22, 2021 at 11:40 am, as reported by the Global Times.

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Because of a Failed Investment

The South China Morning Post reported that Liu’s BMW also hit a van at the intersection. After crashing into the crowd, he attempted to escape on foot. However, his action was thwarted by the police.

Deputy Head of the Dalian Public Security Bureau, China, Qu Bo, said Liu did not accept his personal investment failing. He also felt inferior because he failed to invest.

“So, he took revenge on society,” said Qu Bo.

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Four People Died on Location

This collision killed four people on the spot. One person was declared dead after being rushed to the hospital. Five other people were injured and receiving treatment at the hospital.

Since his arrest, Liu has been detained for carrying out acts that endanger public safety.

The investigation decided to drive drunk or to drive when drunk and had a mental disorder, not the reason for the act. The investigation said Liu still had a clear mind when carrying out his actions.

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