Benefits of Go Public for Companies
Income Tax Incentives for Fixed Assets Revaluation
In order to generate cash inflow from income tax, the government had issued tax facility related to the revaluation of fixed assets. This provides several advantages for businesses if doing plea a revaluation of assets in 2015 and 2016. For subsequent years, then do not get discounts on income tax. This particular policy objective is to maintain macroeconomic stability and promote economic growth.
The Minister of Finance Regulation (“Peraturan Menteri Keuangan” or PMK) No.191/PMK.010/2015 dated October 15, 2015 related to "Revaluation of Fixed Assets for Tax Purposes for the Petition that was Proposed In 2015 and 2016" provides an opportunity to the Taxpayer of Internal Affairs, Permanent Establishment (“Bentuk Usaha Tetap” or BUT), and Private Taxpayers which perform bookkeeping to perform revaluation on fixed assets to avail of special tax treatment.
Special rates prevailing in 2015 and 2016 for Taxpayers who have adopted the fixed assets revaluation by the public appraisal services office (“Kantor Jasa Penilai Publik” or KJPP) or expert assessors and pay off the income tax are as follows:
→ 3% (three percent), for the petition proposed until December 31, 2015;
→ 4% (four percent), for the petition proposed since January 1, 2016 until June 30, 2016;
→ 6% (six percent), for the petition proposed since July 1, 2016 until December 31, 2016.
Benefits of Go Public for Entities
Nowadays, the stock market is one of the places to obtain business financing, either through issuance of shares or bonds. In the stock market, there are opportunities to obtain large amounts of funds and increase the entity’s status as a public entity. As such, the access for funding becomes increasingly large and spacious. This means a way for entities to grow bigger will open status as Emiten (Issuers).
Why entities should go public?
• Business expansion
• Business diversification
• Loan repayment
• Finance and capital restructuring
• Combination of the above items