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Tax Amnesty Volume II

Posted by Heritage Bali Legal on March 21, 2022
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Taxpayers can take part in the Program Pengungkapan Sukarela (PPS) – Voluntary Disclosure Program or Tax Amnesty volume II from January 1, 2022 to June 30, 2022 as stated in Undang-Undang Harmonisasi Peraturan Perpajakan (HPP) – Law on the Harmonization of Tax Regulations.

Program Pengungkapan Sukarela (PPS) is an opportunity given to taxpayers to disclose tax obligations that have not been fulfilled voluntarily through the payment of Pajak Penghasilan (PPh) – Income tax based on the disclosure of assets.

By taking part in the program you’ll be free from administrative sanctions and data protection that the disclosed property data cannot be used as a basis for investigation, and/or criminal prosecution.

VOLUNTARY DISCLOSURE POLICIES

1st policy

  • The participants are Individual Taxpayers and Tax Amnesty (TA) participants.
  • Disclosure of assets as of December 31, 2015 that have not been disclosed when participating in the TA.

Tariff

  • 11 percent for foreign declaration assets.
  • 8 percent for repatriated foreign assets and domestic declaration assets.

6 percent for repatriated foreign assets and domestic declaration assets invested in hilirisasi (industries that process materials into finished goods) and renewable energy industries.

2nd policy

  • The participants are Individual Taxpayers.
  • Disclosure of assets acquired from 2016 to 2020 that have not been reported in the 2020 Annual SPT.
  • Must meet the requirements of not being audited or conducting preliminary evidence examinations for fiscal years 2016, 2017, 2018, 2019, and 2020; and is not being investigated, in the judicial process, or is undergoing a criminal act in the taxation sector.

Tariff

  • 18 percent for repatriated foreign assets and domestic declaration assets.
  • 14 percent for repatriated foreign assets and domestic declaration assets.
  • 12 percent for repatriated foreign assets and domestic declaration assets invested in hilirisasi (industries that process materials into finished goods) and renewable energy industries.

TERMS FOR REPATRIATION

  • Repatriation or transfer of assets to Indonesia is carried out no later than September 30, 2022 through a bank.
  • The net assets transferred to Indonesia cannot be transferred outside the territory of Indonesia (holding period) for a minimum period of 5 years from the date of issuance of the Certificate. This holding period also applies to domestic declaration assets.

TERMS FOR INVESTMENT IN HILIRISASI

  • Investments are made in hilirisasi of Natural Resources/renewable energy or investment in Surat Berharga Negara (SBN) – State Securities. 
  • Investment in hilirisasi of natural resources/renewable energy can be done in the form of establishing a new business or equity participation. 
  • SBN investments are made in the primary market with a private placement mechanism through the Main Dealer by showing a Certificate.
  • Investment is made no later than September 30, 2023.
  • Investments are made for a minimum of 5 years (holding period) from the time they are invested.
  • Investment can be transferred to another form after a minimum of 2 years. Transfer between investments maximum of 2 times with 1 transfer in 1 calendar year. Investment transfer is given a maximum of 2 years. The lag time between investments suspends the holding period of 5 years.

PPS participants with repatriation and/or investment commitments are required to submit an investment realization report through the Direktorat Jenderal Pajak – Directorate General of Taxation website no later than the deadline for submitting the Annual SPT.

ADMINISTRATIVE SANCTIONS

1st policy Voluntary Disclosure

  • Participants who until the program ends there are still assets  that have not been disclosed when participating in 2016 Tax Amnesty are subject to Final Income Tax on additional net assets at a rate of 25% (entity), 30% (tax object) and 12,5% (certain taxpayer) plus added sanctions of 200%.
  • Participants who breach on repatriation/investment until the specified repatriation/investment time limit, an additional fee will be imposed.

2nd policy Voluntary Disclosure

  • Participants who until the program ends there are still assets that have not been disclosed in the Surat Pemberitahuan Pengungkapan Harta – Assets Disclosure Notification Letter are subject to value-added tax on additional net assets at a rate of 30%.

I am a foreigner, does this apply to me?

  • Yes ,only if you are registered as a taxpayer.

I have PT. PMA can I take part in the Program Pengungkapan Sukarela (PPS)

  • Yes, only if your company took part in Tax Amnesty program on 2016

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