Indonesia To Tax Mutual Fund Returns

by Mary Swire, Tax-News.com, Hong Kong

09 July 2010

Commencing in 2011, the Indonesian Directorate of Taxation intends to levy a 5% tax on the returns made by investors in mutual funds.

Dasto Ledyanto, its sub-directorate head for income tax, has also been reported as saying that, while the new tax will be put in place gradually to provide a transitional period for investors, it is programmed to be increased to 15% in 2014.

This would be the first tax imposed on returns from investments in mutual funds, and can be expected, obviously, to reduce their attractiveness, particularly in the current volatile financial markets.

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Tags: tax | investment | investment funds | tax rates | individual income tax | Indonesia

 






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