Indonesia’s Tax Amnesty Targets INR 11.4 Quadrillion of Offshore Funds
April 6, 2016 Taxation in Indonesia
JAKARTA – The government of Indonesia is hoping that a new tax amnesty will help bring in a level of undeclared funds equivalent to the national GDP.
In a seminar held on April 5th the Finance Minister of Indonesia Bambang Brodjonegoro claimed that national tax authorities have detailed information regarding at least INR 11.4 quadrillion stored by local taxpayers in undeclared offshore bank accounts.
The amount of money reputed to be hidden in offshore accounts is approximately equivalent to the total annual GDP of the country.
The Finance Minister explained that the data regarding the undeclared funds was collected by the national tax authority through data leaks and information sharing with tax authorities in other countries.
Bambang Brodjonegoro noted that the offshore funds are now being targeted by the proposal to launch a new tax amnesty program, which would allow taxpayers to repatriated unreported funds for a reduced penalty of no more than 6 percent.
It is expected that the legislation to implement the proposed tax amnesty will be passed in the third quarter of 2016.