Category Taxation in Indonesia

Vaping To Be Taxed More in Indonesia

January 13, 2018 Taxation in Indonesia

VapingJAKARTA – Vaping may make way for smoking in Indonesia, if consumers find tax burdens too high.

According to a new announcement from the government of Indonesia, the sale of e-cigarettes in the country will now be subject a significant new tax.

From July 1st 2018 e-cigarettes sold in Indonesia will face a tax of 57 percent.

Supporters of e-cigarettes, or vapes, have claimed that the rate of the tax is too high, and that the new measure will reduce demand for the tobacco alternative.

It has even been claimed that the relative increase in the price of the e-cigarettes will lead to a greater uptake of traditional tobacco products.

However, Heru Pambudi, the head of Customs of Indonesia, has said that the government fully considered the impact of the tax before making the decision to enact th...

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Sedans May See tax Break in Indonesia

August 15, 2017 Taxation in Indonesia

Sedan taxJAKARTA – Indonesia is mulling cutting taxes on sedans in order to boost the national car market, while potentially also enticing manufacturers to move more production to the country.

On August 14th an official at the Ministry of Finance of Indonesia Goro Ekanto said that the tax rate applied to sedans may be dropped from the current level of 30 percent to 40 percent.

The rate varies based on the engine capacity of the car, with vehicles of over 1.5 litres seeing a tax of 40 percent, while those with smaller engines faced the reduced rate of 30 percent.

Comparatively, multi-purpose vehicles face a tax rate of 10 percent to 20 percent.

Indonesia has the biggest market for cars in Southeast Asia, with approximately 1.1...

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Indonesia Sees Tax Amnesty Success

March 22, 2017 Taxation in Indonesia

Indonesian tax amnestyJAKARTA – Indonesia has seen one of the most successful tax amnesties in the world, and is now looking to further step up its fight against tax evasion.

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 ...

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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...

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Indonesia’s Tax Amnesty Targets INR 11.4 Quadrillion of Offshore Funds

April 6, 2016 Taxation in Indonesia

Indonesian rupiahJAKARTA – 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 b...

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