TAX AMNESTY

July 1, 2016 date President has endorsed the Law on Pardons Tax or Tax Amnesty, which was approved by the Plenary Session of Parliament on June 28, 2016, as Law Number 11 Year 2016 concerning the Tax Forgiveness. The policy came into effect on July 18, 2016.

In the Tax Amnesty Law established that the Tax Forgiveness is the elimination of the tax owed should not sanction tax administration and criminal sanctions in the field of taxation, by way of uncovering treasure and pay the ransom money. Each taxpayer is entitled to get tax forgiveness given through disclosure of its treasure in the Statement.

Excepted from the provisions referred to, namely the taxpayer being:
a. Investigation and the investigation file has been declared complete by the Prosecutor;
b. In the proceedings; or
c. Undergo a criminal conviction for Criminal Acts in the Field of Taxation.

Article 3 (4) of Law Number 11 Year 2016 concerning the Tax Forgiveness confirmed "Forgiveness Tax referred to include the remission of tax obligations until the end of the last tax year, which is not or has not been fully resolved by the taxpayer".

Rates Money ransom over the treasure is in the territory of the Republic of Indonesia or the treasure that is outside the territory of the Republic of Indonesia were transferred to the territory of the Republic of Indonesia and invested in the territory of the Republic of Indonesia within a period of 3 ( three) years since transferred, is as follows:

1. 2% (two percent) for the period of submission of the Statement in the first month until the end of three months starting from the Act comes into force;
2.  3% (three percent) for the period of submission of the Statement on the latest from the fourth month of this Law come into force until the date of December 31, 2016;
3. 5% (five percent) for the period of submission of the Statement as of the date January 1, 2017 until the date of March 31, 2017.
   

Ransom Money Rates on treasure that is outside the territory of the Republic of Indonesia and not be transferred to the territory of the Republic of Indonesia is:

1.  4% (four percent) for the period of submission of the Statement in the first month until the    end of three months starting from the Act comes into force;
2.  6% (six percent) for the period of submission of the Statement on the latest from the fourth month of this Law come into force until the date of December 31, 2016;
3. 10% (ten percent) for the period of submission of the Statement as of the date January 1, 2017 until the date of March 31, 2017.
   

Ransom Money rates for taxpayers whose circulation efforts until Rp 4.800.000.000,00 (four billion, eight hundred million) in the last tax year, according to Law No. 11 of 2016, is as follows:

1.  0.5% (zero point five percent) for taxpayers who disclose the value of treasure up to 10,000,000,000.00 (ten billion) in the Statement;
2.  2% (two percent) for taxpayers who reveals treasure value of more than 10,000,000,000.00 (ten billion) in the Statement, for the period of submission of the Statement in the first month since the Act comes into force up to 31 March 2017.
   

Source: Law No. 11 Year 2016 on Tax Forgiveness