Tax Amnesty Effective in 2017

The Tax Amnesty (TA) program is expected be effective in the property sector in 2017. Property developers with upper middle class property portfolios, such as Ciputra Properti Tbk (CTRP), Agung Podomoro Land Tbk (APLN), Lippo Karawaci Tbk (LPKR), Summarecon Agung Tbk (SMRA), Pakuwon Jati Tbk (PWON), Bumi Serpong Damai Tbk (BSDE), Ciputra Development Tbk (CTRA), Alam Sutera Tbk (ASRI), and PP Properti (PPRO) will benefit from the repatriation fund.

Bahana Securities said the fund related to TA, in the form of local assets declaration and repatriation fund, will be used to buy properties next year. Marketing sales target projects from sales in the upper middle segment for CTRP has reached 78.5% from total target, APLN by 56.2%, LPKR by 100%, SMRA by 81,8%, PWON by 61,1%, BSDE by 74,5%, CTRA by 60%, ASRI by 62,3%, and PPRO by 49%.

According to Directorate General of Taxation data per 5 October 2016, the asset reports made by taxpayers have reached IDR 3.673 trillion, while the repatriation fund has reached IDR 138 trillion or 13.8% from target of IDR 1.000 trillion, and tax fine of IDR 93.8 trillion or 57% from target of IDR 165 trillion. (*)