Tax amnesty

CREATED BY :
CHARTIKA ESTERLIN ULY
(155020307121018)
YASMINE ADINDA UMAR
(155020307121026)
Tax amnesty is...

 UU no. 11 tahun 2016 about tax amnesty

It is the elimination of:

1. Income Tax (PPh);
2. Value Added Tax (PPn); and
3. Sales Tax Luxury Goods (PPnBM),
that should have been owed / payable by disclosing all assets owned, in the Declaration Letter
and by paying the Clearance Levy.

No administrative and criminal tax sanctions will be imposed to the Taxpayers for the disclosure
 Purpose of tax amnesty...
ECONOMIC GROWTH through Asset Repatriation, through:
 The increase in domestic liquidity;
 Repair the rupiah;
 Competitive Interest Rates; • The expansion of the data base of taxation more valid,
 Increased investment • comprehensive and integrated
• The basis for calculating potential tax revenue is more
reliable

Tax Revenue Increases both short and long term

• Short-term: acceptance of the ransom
• Medium – long term : Tax revenues on the basis of data more complete and accurate
Repatriation

 is the process of returning a person - voluntarily - to his or her place of origin

or citizenship.

In the event the disclosed Asset is outside Indonesia, Taxpayer can transfer
the asset in the form of fund to Indonesia.
Who is eligible for the Tax Amnesty?

 Companies
 Companies / individuals without a tax identification number
 Small and Medium-sized Entrepreneurs
 Individuals
Who is excluded from the provision?

 Taxpayers who are currently being investigated by the Prosecutor

 Taxpayers under judicial proceedings in Court
 Taxpayers already sentenced for criminal charges in respect of taxation
What are the clearance levy rates?

Clearance Levy rates 1st Batch July to 2nd Batch October to 3rd Batch January to
September 2016 December 2016 March 2017

Offshore assets declaration – repatriation and 2% 3% 5%

invest in Indonesia for at least 3 years

Onshore assets – to be kept in Indonesia for at 2% 3% 5%

least 3 years

Offshore assets declaration – no repatriation 4% 6% 10%

SMETaxpayers whose revenue up to Rp4.8 billion in the latest fiscal year

Disclosing assets up to Rp10 billion The first month until 31 Disclosing assets more than Rp10 billion The first month until
Mar 2017 31 Mar 2017

0,5% 2%
Advatages based on Mahmed Nar

 Collects back taxes

Increases future compliance by lowering its cost
(no longer necessary to evade to hide past bad behavior)
 Improves records, e.g., adding non- lers, which enhances future control of
evasion
 Reduces deadweight costs from burden of guilt; fosters repentance
 Permits politically feasible transition to harsher enforcement regime
-Lowers short-term penalties, raises long-term; such twisting can raise or lower
on net Avoids “ineguity” from sudden change
--Permits imposition of severe penalties on those who refuse amnesty offer
Permits productive and vigorous enforcement against future evasion
Angers honest taxpayers
Disadvatages

 Decrease the receivable of consesquent year (example; the amnesty

policy in michigan decresed the revenue of FY 2003 by $18,4)
 It makes taxpayers aware of tax avasions
 It is a signal that is not a big guilt
 The taxpayers will decrease the compliance and wait for new amnesty
What are the consequences of Tax
Amnesty?

 Incremental value of the additional assets must be recorded as retained

earnings
 All tax disputes must be withdrawn
 Accumulated tax losses & tax overpayments cannot be carried forward
 All outstanding tax liabilities must be settled
 Additional assets cannot be depreciated / amortized
 Cannot request for refund of any overpayment balances
 Not allowed to amend any tax returns up to the last fiscal year
What are the sanctions for not disclosing or
under-declaring your assets?
Under-declaring
 1. The assets will be
considered as additional
income to the Taxpayer
 2. Will be subject to income
tax plus a penalty of 200%
Non-disclosure
(within 3 years after the tax
amnesty law)
 1. The assets will be
considered as additional
income to the Taxpayer
 2. Will be subject to
administrative sanctions
in accordance with the
prevailing tax laws
Prespective about tax amnesty

 Tax amnesty policy bring new taxpayers enter the system and give
information about taxpayers and their activities and as said by Mr. Joko
Widodo about tax amnesty as the citizen of Indonesia earn money from
Indonesia resources, and it will be good to pay the tax for make Indonesia
to a better country by paying tax.
 Tax amnesty has advantages and disadvantages, based on Mehmed Nar:
2015 there are several advantages of tax amnesty. Will be presented in the
next slide
OTHER COUNTRIES THAT APPLIES TAX
AMNESTY SYSTEM

 BASED ON DANNY DARUSSALAM TAX CENTRE THERE ARE 13 OTHER

COUNTRIES THAT APPLIED TAX AMNESTY POLICY NOWADAYS, THERE ARE;
 SOUTH KOREA
 THAILAND
 FIJI ISLAND
 TRINIDAD AND TOBANGO
 PAKISTAN
 GIBRALTAR
AND THE OTHER 5 COUNTRIES conduct special tax
amnesty repatriation

 MALAYSIA
 RUSIA
 INDIA
 BRAZIL
 ISRAEL
 Repatriation in term of Bahasa Based on KBBI is repatriation of people to his
homeland (to the country of origin);)
 And the term used in tax amnesty as terms of repatriation language
understanding is the process of returning a person "voluntarily or forcibly" to its
place of origin or citizenship. The term repatriation is the adoption of English
Repatriation.
 Before Indonesia and 13 other countries there are 24 countries to first
implement tax amnesty policy. This means that the policy has been
applied in 38 countries.