A tax amnesty program in Indonesia offers wealthy individuals (and companies) an opportunity to disclose and repatriate their undeclared assets by paying what is described as a modest clearance levy on the declared assets. Indonesians have up to 30 September 2016 to enjoy the lowest tax bracket.
Because Indonesians have historically been keen investors in Singapore property and have accounted for a significant proportion of foreign purchasers of property in Singapore, there are some who question whether the tax amnesty program being offered in Indonesia may affect residential property values in Singapore, as Indonesians deliberate whether to liquidate their property holdings in Singapore in order to take advantage of this one-time offer for tax amnesty. Repatriated funds generally are allowed to be invested in Indonesian real estate under the amnesty program.
Read a September 2016 report [PDF 487 KB] prepared by the KPMG member firm in Singapore: Impact of Indonesian Tax Amnesty on Singapore Property Prices
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