Employee: Tax Amnesty or Revision of Individual Income Tax return?

Tax Amnesty as stipulated on Law 11 Year 2016 shall be annulment of tax which should be payable, which is not subject to administrative sanctions of taxation and criminal sanctions in taxation sector, by way of declaring Assets and paying Redemption Money.

Taxpayer should pay rates of Redemption Money of Assets that yet unreported in the Annual Individual Income Tax Return both existing inside the territory of the Unified States of the Republic of Indonesia or Assets existing outside the territory which are transferred into the territory of the Unified State of the Republic of Indonesia (Repatriation) and which are invested inside the territory of the Unified State of the Republic of Indonesia within the period by no sooner than 3 (three) years as from their transfer, shall be amounting to 2% (two percent) for the period of delivery of Statement Letter prior to 1 October 2016, 3% (three percent) prior to 1 January 2017, and 5% (five percent) prior to 1 April 2017. For offshore Assests declaration, the rate of Redemption Money apply twice of Repatriation rate.

Rates of Redemption Money for Taxpayer whose business turnover reaches IDR 4.800.000.000,00 (four billion eight hundred million rupiah) in the Last Fiscal Year (UKM) shall be imposed to 0.5% (zero point five percent) for those who declare value of Assets up to IDR 10.000.000.000,00 (ten billion rupiah) and 2% (two percent) for those who declare value of Assets exceeding IDR 10.000.000.000,00 (ten billion rupiah) in Statement Letter.

The first round of Tax Amnesty programme has just ended. During July-September alone Taxpayer who disclosed their Assests in Surat Pernyataan Harta (SPH) reached 405.405 names with Redemption Money flowed into State Account amounting to IDR 93,49 Billion and Assests declared amounting to IDR 3,826.81 Billion. Individual Taxpayer contribute major amount of revenue with Redemption Money reached IDR 83 Billion (88,78% from total revenue from first round) and IDR 3,322.26 Billion Assets declaration collected from 321,893 Taxpayers. Corporate Taxpayers numbered 83,512 participants with Redemption Money amounting to IDR 10,49 Billion (11,22%) and booked IDR 504,55 Assets declared.

The achievement of the above tax amnesty is quite encouraging and rated by many as a success. But some of us may questioning should they need to participate in Tax Amnesty.As a matter of fact I worked as office nine-to- five staffs where generally the employer has deducted the income tax timely. As a result, we submit the NIL Annual Individual Income Tax Return every March since the income tax has been deducted. As time goes by, some of us may not report the increment of Assets such as new property, vehicle, deposit, saving, etc in the Return. In this case, whether or not to participate in Tax Amnesy becoming our concern.

Tax Amnesty targetted Asset in which the income used to purchase it has not yet reported. Should the employee has reported his income but not the Assets purchased from it, it is encouraged that he should revise the Annual Individual Income Tax Return. If the income used to purchase the Assets increment has not yet reported in the Return, then it is advisable to participate in Tax Amnesty.

However, Taxpayer could not submit both Revision of Return and SPH of Tax Amnesty. One should choose whether to participate in Tax Amnesty or submit the Revision of Return. (DN)

 

 

Source:

  •  Undang-Undang Nomor 11 Tahun 2016
  •  Peraturan Direktur Jenderal Pajak Nomor PER-11/PJ/2016
  • https://m.tempo.co/read/news/2016/10/14/087812381
Circular Letter Number SE-05/PJ/2017 Notification Of The Entry Into Force Of The Agreement Between The Government Of The Republic Of Indonesia And The Government Of Lao People’s Democratic Republic For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income
Circular Letter Number SE-05/PJ/2017 Notification Of The Entry Into Force Of The Agreement Between The Government Of The Republic Of Indonesia And The Government Of Lao People’s Democratic Republic For The Avoidance Of Double Taxation And The Prevention Of Fiscal Evasion With Respect To Taxes On Income

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