30 Sept 2016
INDONESIA: First Phase of Tax Amnesty Concludes with US$126 Billion Assets Declared
With the first phase of the country’s nine-month tax amnesty scheduled to end today, the government has rejected calls to extend the programme. In a conciliatory move, however, it has agreed that all of those who declare untaxed earnings by the end of today will have until 31 December to complete the relevant paperwork.
Under the terms of the first phase of the amnesty, declarants incurred a penalty tax rate of just 2-4%. Any assets declared after today – but before 31 December – will be liable for a higher tax rate of 3-6%. Thereafter, the tax rate on declarations will be 5-10% until the amnesty ends on March 31 2017.
According to sources at the finance ministry, some 100,000 people have taken advantage of the amnesty to date, with around US$126 billion of formerly clandestine asserts now officially declared.