Indonesia Sees Tax Amnesty Success
March 22, 2017 Taxation in Indonesia
Indonesia has wrapped up its latest tax amnesty program, and has reportedly achieved stellar results, and now the government is looking to crack down on tax evaders who did not take advantage of the generous offer of amnesty.
Indonesia saw approximately 745 000 workers come forward to declare their previously hidden assets and income.
The value of the assets and incomes has been estimated to come to the equivalent of USD 330 billion.
Some experts have gone so far as to suggest that the results of the amnesty are the most successful in recent history.
However, now that the amnesty is complete, the government hopes that it can improve its own systems to boost tax collections, improve the national tax-to-GDP ratio.
It is expected that the government will take legal action against tax evaders who were uncovered during the amnesty but did not make use of the program to come clean about their tax dodging.
Currently the workforce of Indonesia is estimated to be made up of 118.31 million individuals, however, less than a third of these workers are registered for taxes or file annual tax returns.