TEMPO.CO, Jakarta - The Financial Services Authority (OJK) has proposed to relax taxes on several investment instruments in the stock market in order to support infrastructure development and attract investors.

"By means of tax relaxation on stock market instruments, infrastructure assets can further develop rapidly, competitively, and it can attract both foreign and domestic investors," OJK commissioner for capital market supervision Hoesen said in Jakarta on Friday, Nov. 17.

He explained that stock market products subjected to tax relaxation include corporation obligations, private equity funds (RDPT), real estate investment funds (DIRE), asset-backed securities (EBA), and infrastructure investment funds (Dinfra).

For corporation obligations, he suggested lowering the tax rate the same as government debt paper (SBN) to 15 percent from 20 percent.

In addition, he continued, for RDPT investing in debt security through special purpose company (SPC), the dividend from SPC should be exempted from taxes since SPC is part of RDPT.

Meanwhile, for DIRE, he added, the OJK suggested lowering the tariff of property transfer fee (BPHTB). For EBA, taxes should be equal to similar products.

Regarding Dinfra, Hoesen claimed that tax incentive should be equal to DIRE collective investment contract (KIK). In this case, Dinfra invests on debt paper, so that the taxation practice is the same as equity funds.

ANTARA