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Anything You Need To Know About Tax Amnesty Part II

The Tax Voluntary Disclosure Program (PPS), commonly referred to as tax amnesty volume II continues. As of January 13th, 2022, the value of recorded asset disclosures has reached Rp 2.338 trillion. This number came from 3,747 taxpayers with 4,015 certificates (Tax. go.id January 14th 2022). In detail, the declaration from within the country amounted to Rp. 1.767 trillion. Meanwhile, statements from abroad reached Rp 431.82 billion. The number of assets invested in state securities (SBN) reached Rp 141 billion. Meanwhile, the amount of PPh collected reached Rp 272.14 billion.

The Voluntary Disclosure Program is from January 1st, 2022, to June 30th, 2022. The Voluntary Tax Disclosure Program is carried out online through the Taxpayer's account on the website djponline.pajak.go.id within 24 hours a day and seven days a week with the West Indonesian Time (WIB) standard. This application can be accessed 24 hours a day and seven days a week with six easy steps:

  • logging into DJPonline

  • entering the PPS application

  • downloading the form

  • filling out the form

  • making payment

  • submitting

Furthermore, the government has issued implementing regulations for PPS in the Minister of Finance Regulation (PMK) Number 196/PMK/03/2021 concerning Procedures for Implementing the Taxpayer Voluntary Disclosure Program. This regulation was promulgated as of December 23rd, 2021. The Director of Extension, Services and Public Relations of the Directorate General of Taxes (DJP) of the Ministry of Finance (Kemenkeu), Neilmaldrin Noor, said two policies are regulated in the PPS. The income tax rates (PPh), priced in the second volume of tax amnesty, are also different.

First, policy I is for taxpayers participating in the 2016/2017 tax amnesty who have not disclosed their assets as of December 31st, 2015, when participating in the tax amnesty at that time. This policy applies to both Entities and individuals. The tax amnesty volume 2 offered by the government is 11% for foreign declaration assets. Then the tax amnesty rate for volume 2 is 8% for repatriated overseas and domestic declaration assets. Then there is also a tax amnesty volume 2 of 6% for repatriated overseas assets and domestic declaration assets invested in State Securities (SBN), downstream natural resources (SDA), and renewable energy.

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Second, policy II is for individual taxpayers for assets acquired from 2016 to 2020 which have not been reported in the 2020 Annual Tax Return (SPT). The tax amnesty volume 2 provided in Policy II is, among others, 18% for foreign declaration assets. Then, the tax amnesty volume 2 tariff is 14% for repatriated overseas and domestic declaration assets. Essentials information related to Tax Amnesty Volume 2:

  • The deadline for repatriation of assets abroad to Indonesia is no later than September 30th 2022.

  • The deadline for investing assets into SBN/downstream/renewable energy is no later than September 30th, 2023.

  • If the repatriation or investment of assets is not under the reporting of tax amnesty volume 2 (for policy 1), the deficiency will be treated as final income for the 2022 tax year and may be subject to additional Final Income Tax of:

    • 4.5% to 7.5% (if not report to DGT and DGT issues an underpaid tax assessment/SKPKB)

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