SECOND-PERIOD TAX AMNESTY PROGRAM TO TARGET SMEs, PROFESSIONALS by Fardah

Jakarta, Oct 19, 2016  (Antara) - The second phase of the tax amnesty program that began on October 1 and will last till December 31, 2016, offers a redemption tariff of three percent.

         This is slightly higher than the two percent tariff offered during the first phase from July 18-September 30, but less than five percent that will be imposed during the third phase (January 1 to March 31, 2017).

             A total of 405,405  tax payers declared their assets with redemption payments totaling Rp93,49 trillion and the declared assets reaching Rp3,826.81 trillion as of Oct. 12.

        Of the total redemption funds accrued, most came from individual tax payers, numbering 321,893. Redemption funds reached Rp83 trillion (88.78 percent) and assets declaration reached Rp3,322.26 trillion.

         The number of corporate tax payers reached 83,512 with total redemption funds reaching Rp10.49 trillion (11.22 percent) and declared assets reaching Rp504.55 trillion.

          The first phase was considered successful compared to similar programs carried out by several other countries.

          At present, the Finance Ministry, particularly the Tax Directorate General, will identify professionals who can potentially participate in the current tax amnesty program.   
     Nine categories of professionals have so far been identified as potential participants in the tax amnesty plan, including doctors, tax consultants, lawyers, architects, accountants, notary public, appraisers, provincial governors and deputy governors, commissioners and directors of board of state-owned companies.  

TAX AMNESTY PROGRAM TO HELP IMPROVE TAXATION SERVICES, DATA BASE by Fardah

Jakarta, Oct 4, 2016 (Antara) - Indonesia's Tax Amnesty Program, the first phase of which came to an end on Sept. 30, has turned out to be the most successful such initiative in the world.

          Indonesia's amnesty scheme's success surpassed even the experience of Italy and Chile that had carried out a similar program earlier.    
    Moreover, the program which began in July 2016, has lent a momentum to reforms in the taxation system, particularly when it comes to improving the tax data base and services.

        Until Sept. 30, Rp97.2 trillion were accrued as redemption funds from the tax amnesty program, while the total declared and repatriated funds reached Rp3,621 trillion. The repatriated funds amounted to Rp137 trillion.

        A total of 347,033 people who had evaded taxes earlier participated in the government's tax amnesty program in the first phase, according to the Tax Directorate General of the Finance Ministry.

        These figures were obtained from the provisional data collected till Sept. 30, Hestu Yoga Saksama, the spokesman of the Tax Directorate General, said.

         A total of 14,135 tax payers obtained a Text Identification Number (NPWP) for the first time.

          The government's nine-month tax amnesty program had set a target to collect Rp165 trillion worth of redemption funds, Rp4 thousand trillion worth of declared funds, and Rp1 thousand trillion in repatriated funds.  

INDONESIAN TAX AMNESTY PROGRAM RECORDS BIG SUCCESS by Fardah

 Jakarta, Sept 30, 2016 (Antara) ¿ It is in the nature of many people to wait until the last minute to deliver their duties, and that also applies to tax evaders who have finally decided to apply for the tax amnesty offered by the Indonesian government since July 2016.

       The government has launched its tax amnesty program in an effort to increase tax revenues to help finance infrastructure development programs.  
    The government asked applicants to pay a two percent penalty in September, but if they pay after September, the penalty will be higher.    
   The first period for the tax amnesty program is from July 18 until September 30, 2016, offering redemption tariffs of two percent; the second is from October 1 until December 31, 2016 (three percent); and the third period is January 1 until March 31,  2017 (five percent).     
      In the beginning, some people were pessimistic about the tax amnesty program. Yet, as the first period is nearly over, long queues were seen at banks and tax offices participating in the program, as the tax amnesty applicants wanted to take advantage of the lower redemption tariff offer.

          President Joko Widodo (Jokowi) made an impromptu inspection at the Grogol tax office in West Jakarta on Sept. 28 to view the services being provided to those applying for tax amnesties, two days before the closing of the first period.

GOOGLE SHOULD PAY TAX IN INDONESIA by Fardah

Jakarta, Sept 21, 2016 (Antara) - Google has become part of the daily routine for most people.

        The giant Internet-based search engine company provides access to billions of pages of information in micro seconds without directly charging its users.

        It serves people looking for data, documents, maps, pictures and even recipes.

          Founded by Larry Page and Sergey Brin in 1996, Google's search engine was registered as Google.com in September 1997 and then incorporated in 1998.

         Google offers an array of products and services including search tools, advertising services, communication tools, publishing services, and development and security tools, as well as map-related products, statistical and mobile-based software, and hardware.

        Because it is so popular, Google earned US$75 billion in revenue in 2015 from its proprietary advertising service, Google AdWords. Of that revenue, over 77 per cent, or just over $52 billion, came from Google's own websites.   
  With a population of over 250 million, where at least 100 million are Internet users, Indonesia is one of the largest online markets worldwide.

        Digital advertising expenditure in Indonesia in 2016 is estimated to increase significantly to more than $1 billion.

        As a result of the Indonesian government's efforts to increase the state's revenues from taxes in order to narrow the budget deficit and fund infrastructure development, Google is one of several companies that have been targeted to pay tax in the country.  

SCHEMES IN PLACE TO ATTRACT FUNDS STASHED ABROAD FOR INVESTMENT by Fardah

Jakarta, July 31, 2016 (Antara) - The Indonesian government is optimistic that funds that has so far stashed abroad by rich Indonesians, will be repatriated following incentives offered through tax amnesty program.

         Last month the House of Representatives (DPR) approved and passed a tax amnesty bill into law, which is expected to result in returning of big funds parked abroad to evade tax.  
    The funds are expected to help increase the state revenues needed to finance economic development and improve domestic financial liquidity amid the global slump.  
    Officially launched on July 1, the tax amnesty program is effective from July 18, 2016 until March 31, 2017.

         To lure parts of the funds, Indonesia's Capital Investment Coordinating Board (BKPM) has prepared an investment scheme.

         "BKPM has a role in accelerating investment by preparing investment scheme for those wanting to use their funds for direct investment," the then head of BKPM Franky Sibarani said recently.

         He said he was confident that the investment scheme would attract those utilizing the tax amnesty policy to invest in Indonesia.

         "The scheme is expected to help the government reach its investment target of Rp594.8 trillion this year," he said.    

INDONESIA INTENSIFIES AWARENESS CAMPAIGN ON TAX AMNESTY PROGRAM by Fardah

Jakarta, July 30, 2016 (Antara)- The Administration of President Joko Widodo (Jokowi) is racing against time to make its tax amnesty program a success, in order to increase the much needed state revenues.

        Officially launched on July 1, the tax amnesty program is effective from July 18,  2016 until March 31, 2017.

        The first period of its implementation is from July 18 until September 30, 2016; the second is from October 1 until December 31, 2016; and the third period is from  January 1 until March 31,  2017.

         The tax amnesty program has a specific period, therefore there should be no delay in its implementation, President Jokowi was quoted as saying by new Finance Minister Sri Mulyani Indrawati recently.

         He particularly asked Finance Minister Sri Mulyani to complete all regulations on implementation of the tax amnesty.

          Regulations on the tax amnesty must be completed soon, so the program could be carried out successfully, Minister Mulyani said at the presidential palace, here on July 28, after receiving a directive by the President on the tax amnesty for officials of the tax directorate general of the finance ministry.

          The tax amnesty program is designed to be a significant incentive for taxpayers, since the compensation interest to be charged is only two percent, according to the minster.

           "We are trying, during the period from now until September, to create trust building, convenience and, finally, success in developing a tax system," she said.

         The president asked every tax officer to not only be ready and proactive in the implementation of the tax amnesty program, but also to secure the state revenue, in general.