Indonesia May Soon Launch Tax Amnesty

June 29, 2016 Taxation in Indonesia

Indonesian rupiahJAKARTA – Indonesia is taking steps to launch a new tax amnesty program.

On June 28th a Commission of the House of Representatives of Indonesia approved a new tax amnesty program, which will be put to vote in Parliament the following day.

Under the tax amnesty program, any taxpayers coming forward to declare any previously undeclared assets held in Indonesia will be levied at a rate of only 2 percent over the first three months of the program, to be raised to 3 percent over the following three months, and 5 percent over the following three months.

Overseas assets which are declared will face a penalty of 4 percent over the first three months, 6 percent over the next three months, and 10 percent over the last three months.

If ratified on June 29th, the tax amnesty will come into effect in July 2016, and will run for 9 months.

Photo by eltpics

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