30 Aug 2016
INDONESIA: Tax Amnesty Extended to Offshore Special Purpose Vehicles
Companies utilising offshore Special Purpose Vehicles (SPVs) can now take advantage of the country’s nine-month tax amnesty. In order to benefit from the initiative, companies will have to report their use of such vehicles to the tax authorities, while also detailing the exact ownership structure and the sums involved.
Following such disclosures, companies will have until 31 December 2016 to repatriate their SPV funds. All such transfers will be exempt from VAT.
With just 10% of all SPVs said to be registered with the authorities, clear guidelines and incentives with regard to such entities are seen as essential to in order to boost the uptake of the amnesty.