Indonesia Income Tax Rate Chasing Singapore

Indonesia Income Tax Rate Chasing Singapore
Income Tax Rate Income tax payers or entities that will apply from 2009 down from 30 percent to 28 percent, and will be 25 percent in 2010. This was done because Indonesia wants to keep pace with the investment climate competitiveness compared with neighboring countries is much lighter tax rates, especially income tax rates in Singapore which started this year decreased to 18 percent.

"The purpose of the amendment of Income Tax Act and VAT (Value Added Tax) is to improve competitiveness with nearby countries. Although not go beyond, but income tax rates that have been defined by the Parliament began to approach Singapore," said Director General of Taxes, Nasution Nasution in a press conference in Jakarta, Monday (21 / 7).

According to Nasution, Malaysia was still using the mechanism of progressive income tax rates between 20-27 percent for taxpayers body. On that basis, Indonesia is much more interesting than Indonesia viewed from a comparison of his income tax rates.

"The trend in the world are showing that the tax rate was kept down. This is caused by globalization and the advance of information technology. Thus, any tax rate changes in a country, people in other countries will know right away.