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Latest Update of Tax Amnesty II 2022

Over Rp, 8.4 trillion has been disclosed voluntarily in just 30 days. As part of the Voluntary Disclosure Program (Program Pengungkapan Sukarela or PPS), Rp. 7.21 trillion in domestic declarations and repatriations were revealed. According to the Tax Harmonization Law (UU HPP), the program is implemented, which provides a voluntary disclosure from January 1st to June 30th, 2022.  It's important to note that the PPS is a voluntary disclosure program for taxpayers who participated in the tax amnesty and individual taxpayers on assets that have not been disclosed in the 2020 fiscal year from 2016 to 2019. The PPS was convened because many tax amnesty participants had not ultimately revealed their assets during the tax amnesty in 2016-2017.

About thirty days have passed since the Tax Voluntary Disclosure Program (PPS), more commonly known as Tax Amnesty Volume II, was started earlier this year. There were 10,179 certificates granted to 9,272 taxpayers, according to the Directorate General of Taxes (DGT). Between 8.47 trillion Rupiahs in assets revealed, over 85 per cent was declared as domestic assets. Meanwhile, overseas investments accounted for 8.5 per cent of the total assets, and domestic investments accounted for 6.5 per cent of the total assets.

Online PPS reporting is available through their portal, which can be accessed from their account. Schemes one and two of this property disclosure program are available. Taxpayers who participated in the first round of tax amnesty but still have assets that have not been under-reported are eligible for the first program. A rate of 6-11 per cent is used in the first scheme. Only individual taxpayers who acquired assets between January 1st, 2016, and December 31st, 2020, are eligible for the second plan. The rate itself ranged between 12-18% in this dual program.

The first and second plans offer the lowest possible tax rates to taxpayers in exchange for various requirements. Assets that are only declared overseas are subject to the highest tax rates. For example, Investing in Indonesian State Securities (SBN), natural resource downstream businesses (SDA), or the renewable energy industry (SDA) carries the lowest tariff, which is 6 per cent in the first scheme and 12 percent in the second. Corporate income tax rates will be 25%, individual income tax rates 30%, and some taxpayers as low as 12.5% under the first round of changes. The penalty for under-disclosing assets is doubled to 200 per cent. The Final PPh rate from extranet assets in the second plan is 30%. In addition, fines are imposed in monthly interest and a 15% uplift factor.

Read more:
Anything You Need To Know About Tax Amnesty Part II
Indonesian Income Tax (PPh) Act 15 That Representative Office Should Know
​Are Foreigners on a Business Trip to Indonesia Taxable?

Tax Amnesty II As A Relief for Unreported Assets

Deputy Minister of Finance Suahasil Nazara asked taxpayers (WP) to participate in the Voluntary Disclosure Program (PPS), which continues until the end of June this year. The main objective of this program is to reveal hidden assets that have not been reported to avoid the risk of being subject to the patrolling of the Director-General of Taxes (DGT) of the Ministry of Finance. "Don't let the tax officer find the unreported assets," said Suahasil at the Socialisation of the Harmonisation of Tax Regulations Law in Malang, East Java, Friday (21/1). Tax consultants and the Directorate General of Taxes (DGT) work together to make the voluntary disclosure program easier to grasp for taxpayers