As we know, in 2016 the Indonesian government, especially in the field of taxation, was carrying out a reform movement in the implementation of the tax amnesty policy which we usually know as the tax amnesty or tax amnesty. The policy that applies this year until 2017, it turns out that this United State with the symbol of the Garuda Bird has already implemented this policy in 1984 and 2008. 

However, in 2008 there was a difference, namely the policy that was implemented was not called the tax amnesty but was called the Sunset Policy, this policy remains the same as the tax amnesty, except that the Sunset Policy is a mini version of the tax amnesty. Judging from its success in 1984 and 2008, this policy failed because it was not attractive to some taxpayers (WP) and law enforcement did not provide more support.

With the policies implemented, of course, it can bring benefits that can be felt, especially in the field of the Indonesian economy. For this reason, the government has carried out a large-scale campaign to educate and invite the public to implement a tax amnesty and minimize the recurrence of failures, although this one policy has its pros and cons. In order to avoid the pros and cons due to misunderstandings about the tax amnesty and others, Malacca Trust will provide a description of the tax amnesty starting from the meaning, purpose, implementation, to the benefits of the tax amnesty itself:

1. Understanding Tax Amnesty

Tax Amnesty means tax amnesty, namely amnesty granted by the Government to Taxpayers (WP) which includes the abolition of tax payables, the abolition of tax administration sanctions, the abolition of criminal sanctions in the field of taxation on assets acquired in 2015 and previously that have not been reported. in the SPT, as well as certain criminal sanctions that are required to pay a ransom.

This tax amnesty is not only in the form of objects that are stored abroad, but also those originating from within the country whose reports are not properly submitted, and it is undeniable and it is an open secret that many Indonesians park their funds abroad for the sake of avoid paying taxes. With the implementation of this tax amnesty, the government hopes that those who park their funds abroad will transfer their funds to Indonesia and become new compliant taxpayers so that they can increase state tax revenues.

2. The Purpose of Tax Amnesty

Not only attracting the assets of Indonesians who save abroad to be transferred to Indonesia and encourage taxpayers to pay taxes discipline. The tax amnesty has other objectives including, the first, to increase growth and restructure the national economy. Second, to increase the national tax base, namely the assets submitted in the application for tax amnesty can be used for future taxation. Third, to increase tax revenue this year. Four, increase the number of taxpayers. Fifth, to increase tax revenue for development costs.

3. Implementation of Tax Amnesty

In its implementation, this tax amnesty is valid from the date it was ratified until March 31, 2017, and is divided into 3 (three) periods, namely:

Period I: From the date of promulgation until September 30, 2016  
Period II: From October 1, 2016 to December 31, 2016  
Period III: From January 1, 2017 to March 31, 2017

In terms of reporting, as reported by Okezone. According to Directorate General of Taxes notes as of September 14, 2016 at 08.45 WIB. The realization of the tax amnesty ransom fund or  has reached Rp9.31 trillion. Based on statistical data from the Directorate General of Taxes, Ministry of Finance, Wednesday (14/9/2016), the realization of this ransom fund reached 5.6 percent of the tax amnesty ransom fund target of Rp. 165 trillion. The composition of the Rp9.31 trillion ransom came from:

  • Non-MSME tax persons amounting to Rp. 7.77 trillion.
  • Non-SME entities amounting to Rp. 1.05 billion.
  • The MSME tax object is IDR 471 billion.
  • MSME Agency Rp 16.6 billion.

Meanwhile, the number of price statements was 51,783 letters. On the other hand, the total assets recorded are IDR 405.56 trillion. The composition of the total assets consists of: 

  • The domestic declaration fund is IDR 295 trillion.
  • Overseas declaration IDR 91.6 Trillion.
  • Rp19 trillion repatriation fund.

So, for those of you who have not applied for a tax amnesty, please file it immediately by visiting the tax service office where the taxpayer is registered or at another place determined by the Minister by bringing a Statement Letter. The Tax Service Office where the Taxpayer is registered or other place determined by the Minister is also the initial place to be addressed to request an explanation regarding the filling and fulfillment of the completeness of the documents that must be attached to the Declaration Letter. For those of you who don't know about the procedure for submitting it, you can see it here! Processes for Filing Tax Amnesty

4. Benefits of Tax Amnesty

With the tax amnesty policy or tax amnesty, it can provide benefits or advantages for several parties, such as ordinary people (taxpayers) and entrepreneurs. The following are the benefits of the tax amnesty for both parties:

From the perspective of taxpayers (ordinary people) the benefits that will be obtained from this tax amnesty are as follows:

  1. Free from income tax (PPh) for the transfer of additional assets.
  2. Not subject to administrative sanctions.
  3. Not subject to tax penalties.
  4. The taxpayer is also not subject to examination by tax investigators. Because they are free from tax crimes by paying two percent of their reported net assets.

In addition to ordinary people who benefit, entrepreneurs will also benefit from this tax amnesty, which will bring a new atmosphere in increasing investment and eliminating Final Income Tax on the transfer of Assets in the form of land and/or buildings and shares.

How can it be sufficient to explain what Tax Amnesty is? And you already know what it's used for? So, for that, Malacca Trust invites you to apply for a tax amnesty right away! Come on, support the government's program and feel the benefits.