27 Sept 2017
INDONESIA: Renewed Tax Scrutiny Looms for Assets Not Declared During Nine-Month Amnesty
The Indonesian government is planning to resume its crackdown on the country’s tax evaders by investigating and taxing assets, which were either not reported or misreported during Indonesia’s nine-month tax amnesty, which concluded in March 2017.
Any undeclared assets secured between 1 January 1985 and 31 December 2015 will now be considered as untaxed income. All such assets investigated by the Indonesian tax authorities before 1 July 2019 will be subject to income tax at the rates of 30% for individuals and 25% for companies.
The Indonesian government’s latest move comes after it was announced in May 2017 that the tax authorities are to be given access to accounts held by both citizens and overseas residents in the country’s banks and other financial institutions. For further details, see INDONESIA: Bank Accounts Now Open to International Tax Scrutiny.