{"id":29481,"date":"2016-10-11T16:13:32","date_gmt":"2016-10-11T09:13:32","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-joy-of-tax-3-things-weve-learned-about-real-estate-taxes-in-indonesia\/"},"modified":"2016-10-11T16:42:04","modified_gmt":"2016-10-11T09:42:04","slug":"the-joy-of-tax-3-things-weve-learned-about-real-estate-taxes-in-indonesia","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/the-joy-of-tax-3-things-weve-learned-about-real-estate-taxes-in-indonesia\/","title":{"rendered":"The joy of tax: 3 things we\u2019ve learned about real estate taxes in Indonesia"},"content":{"rendered":"


\nTax amnesty, tax havens and luxury taxes in Indonesia \u2013 it\u2019s all going on
\nAfrica Studio\/Shuttershock
\nTax, the second most interesting word in the English language ending with \u2018x\u2019, is cropping up in Indonesian property news a lot lately.
\nWith current growth figures nothing to celebrate \u2013 a far cry from just two years ago when Jakarta, Indonesia\u2019s bustling capital, was named the fastest growing luxury property market in the world by Knight Frank \u2013 tax initiatives have formed part of the effort to get things back on track.
\nWith a little help from our friends at Jones Lang LaSalle Indonesia, here\u2019s a summary of what we know about the current state of affairs:
\n1. The tax amnesty is proving successful
\nleolintang\/Shutterstock
\nAfter sluggish beginnings, the highly anticipated tax amnesty, enacted in June, now looks to be the most successful ever, with IDR 3,621 trillion declared; around 90 percent of the IDR 4,000 trillion target that had been set for 30 September.
\n\u201cWhile this has not yet translated into a pick-up in residential sales, we expect to see strong sales growth in the next 6 to 12 months,\u201d JLL\u2019s Q316 report said of the amnesty.
\nThose who have saved in the amnesty are being encouraged to pour their money back into real estate, with Financial Services Authority head Muliaman Hadad saying the market value of Indonesian REITs \u201cwould be promising for years to come after the easing on tax burden.\u201d
\nMore: Singapore home market unaffected by Indonesian tax amnesty
\n2. Tax havens probably won\u2019t happen
\nWhile a certain amount of buzz was created around the possibility that Indonesia may make tax havens out of islands Bintan and Rempang, Todd Lauchlan, country head of JLL Indonesia said he\u2019s \u201cskeptical\u201d that these will ever go ahead, feeling there is little point as Singapore plays this role for Indonesians already.
\nTax haven or not, we wouldn\u2019t mind laying low on Bintan for a while\u2026 Image: Delpixel\/Shutterstock
\n3. Luxury taxes mean condo demand is largely in the middle and lower segments
\nWhile the macro environment may have improved, super luxury and luxury taxes remain in place meaning the upper end of the market continues to experience weak sales.
\nBuyers are now attracted by affordability and lower tax burden, and new developments are mirroring this. There have been only a few high-end launches since mid-2015, and there is an overall decrease in new condominium launches in 3Q16, with only 600 new units (way down from almost 3000 in Q2). While the average sales rate has fallen steadily, it remains healthy compared to many other markets.
\nThe luxury tax means fewer luxury launches\u2026 but we\u2019ll bet The Hamilton (Indonesia Property Awards 2016 nominee for Best Luxury Condo Development: Jakarta) is on many a wish-list.
\nRead next: Herman Nagaria to receive Indonesia\u2019s Real Estate Personality 2016 award
\n
\nSource : property-report.com
\nRead more…The joy of tax: 3 things we\u2019ve learned about real estate taxes in Indonesia<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Tax amnesty, tax havens and luxury taxes in Indonesia \u2013 it\u2019s all going on Africa...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-29481","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-7Fv","jetpack-related-posts":[{"id":23027,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/will-indonesia-be-se-asias-new-tax-haven-paradise\/","url_meta":{"origin":29481,"position":0},"title":"Will Indonesia be SE Asia\u2019s new tax-haven paradise?","date":"August 16, 2016","format":false,"excerpt":"\r Several islands in Indonesia and Malaysia may share the spotlight with Singapore Dawn over Bintang, Indonesia. Image credit: julfran (Flickr) To meet its infrastructure targets and bridge a growing budget deficit, the Indonesian government is discussing the possibility of establishing tax haven jurisdictions in two of its islands. Coordinating\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":23703,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/invest-in-real-estate-tax-amnesty-participants-in-indonesia-urged\/","url_meta":{"origin":29481,"position":1},"title":"Invest in real estate, tax amnesty participants in Indonesia urged","date":"August 23, 2016","format":false,"excerpt":"\r Or face \u201chell,\u201d Finance Minister warns View of Surabaya City, Indonesia. Image credit: Andreas Hie\/Shutterstock Those granted amnesty under the Indonesian government\u2019s program of tax repatriation are being encouraged to pour their money back into real estate. At a seminar in Jakarta on Friday, Financial Services Authority head Muliaman\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":34232,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesias-tax-amnesty-pumps-confidence-back-into-property\/","url_meta":{"origin":29481,"position":2},"title":"Indonesia\u2019s tax amnesty pumps confidence back into property","date":"November 14, 2016","format":false,"excerpt":"\r New infrastructure developments will open up opportunities A promising future for Indonesia\u2019s real estate market. Image: Naruedom Yaempongsa\/Shutterstock By Todd Lauchlan The hottest topic in Indonesian politics right now is undoubtedly the tax amnesty program. Despite early reports that \u201cconfessions\u201d and both domestic and repatriated funds were only trickling\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28509,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/indonesians-make-last-ditch-application-for-tax-amnesty\/","url_meta":{"origin":29481,"position":3},"title":"Indonesians make last-ditch application for tax amnesty","date":"October 4, 2016","format":false,"excerpt":"\r The queues ran long and late into the night Traffic in Jakarta. Kichigin\/Shutterstock Around 2,750 people lined up at Indonesia\u2019s tax headquarters to beat the deadline of the first phase of the tax amnesty program \u2014 with some even queuing up until late night. In a handwritten letter to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28767,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-home-market-unaffected-by-indonesian-tax-amnesty-2\/","url_meta":{"origin":29481,"position":4},"title":"Singapore home market unaffected by Indonesian tax amnesty","date":"October 6, 2016","format":false,"excerpt":"\r Lower than expected liquidation since the introduction of the tax amnesty program The implementation of the Tax Amnesty Scheme (TAS) in Indonesia has not had any material impact on Singapore\u2019s residential segment, said Credit Suisse in a report. Credit Suisse noted that Indonesians have historically been amongst the largest\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":27891,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-home-market-unaffected-by-indonesian-tax-amnesty\/","url_meta":{"origin":29481,"position":5},"title":"Singapore home market unaffected by Indonesian tax amnesty","date":"September 30, 2016","format":false,"excerpt":"\r Indonesian property holdings in Singapore have seen lower than expected\u00a0liquidation since the introduction of the TAS. The implementation of the Tax Amnesty Scheme (TAS) in Indonesia has not had any material impact on Singapore\u2019s residential segment, said Credit Suisse in a report. Credit Suisse noted that Indonesians have historically\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/29481"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=29481"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/29481\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=29481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=29481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=29481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}