Economic Policy Based on Tax Incentives of Assets Revaluation Model: A Potential Tax Revenue

Abstract

Economic Policy Based on Tax Incentives of Assets Revaluation Model: A Potential  Tax Revenue. Regulations are set with the aim of motivating issuers in the stock market to report the value of their property, plant and equipment based on fair value. this policy is in line with the implementation of the International Finacial Reporting Standard on fair value accounting. The results of preliminary observations prove that after regulation, the number of companies that do the asset revaluation increases. Companies that dominate is the financial institution sector, especially banking. This study aims to examine the effectiveness of economic revaluation-based policy models through different values ​​of corporate risk, fixed asset intensity, and asset revaluation value for 3 periods of enactment of tax incentive regulation. Sample is all companies that do assets revaluation during 3 period of regulation The result of research indicate that there is difference of revaluation value in financial institution and non financial sector. Most revaluers are in period 1, followed by period 2, and  then period 3. The number of revaluers of the period 1, 86 issuers, only 16% of total issuers in the capital market, this indicates that the potential tax revenues from asset revaluation is still very large. It is recommended to the relevant regulator to continue the asset revalution tax policy to  increase the  state revenue