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Tax & Legal Advising

KENDRIS Tax Flash

29 December 2016
Read time: 1 min
Of Counsel (AEOI, CRS, FATCA)

Taxpayers who are yet to participate in the tax amnesty program will soon receive emails from the tax office warning that the authority is aware of hidden assets and they could face hefty penalties if they refuse to declare.

A report in the «Jakarta Globe» claims the move is part of the tax office effort to squeeze more revenue out of the tax amnesty program, under which taxpayers could clean their tax record by declaring hidden assets and pay a small percentage of the assets as penalty. (…) Taxpayers who joined the tax amnesty program but are caught only reporting part of their actual assets will be forced to pay income tax for the assets and then pay 200 percent of the income tax as punishment. Those who do not come clean about their assets and never join the tax amnesty program will be forced to pay 30 percent of their taxable income; plus 2 percent of their income tax a month for a maximum 24 months as penalty. The tax amnesty program will close at the end of March 2017