Based on records of the Directorate General of Taxation (DGT), the annual tax return submission compliance ratio in 2018 reaches 71%, decrease by 1.6% compared to the ratio in 2017 reaching 72.6%. According to the Director of Tax Potential, Compliance and Revenue, Yon Arsal, the ratio constitutes a comparison between the number of taxpayers submitting annual tax returns and the number of taxpayers obligated to submit annual tax returns.
Decrease in the ratio is caused by among others the government’s decision to increase the limit of non-taxable income in 2016 in accordance with Regulation of the Minister of Finance Number 101/PMK.010/2016 regarding Adjustment to the Amount of Non-Taxable Income. In 2017, many taxpayers submitted annual tax returns for tax year 2016 although their income is below the limit of non-taxable income. In 2018, they no longer submitted annual tax returns.
Meanwhile for 2019, DGT sets the target of annual tax return submission compliance ratio at 80% of the number of taxpayers which are obligated to submit the annual tax returns. However, DGT has not set the number of such taxpayers.
Source : https://legalcentric.com/content/view/138134