Indonesian Voluntary Disclosure Program II is currently underway until June 30th 2022 as mandated in the Tax Harmonization Law that had been ratified last year.
How can locals and expats disclose their repatriated and domestic assests? And what this new law effects business in 2022?
Mrs. Dwi Astuti is giving detailed explanation about Voluntary Disclosure Program including the regulations about the law, step by step to apply, and the documents needed. She also mentioned about the benefit which is under the Policy I, the benefits are the taxpayers are relief from penalties – under Art. 18 (3) of Law on Tax Amnesty and Data protection which is the data disclosed on the Notice of Asset Disclosure (briefly known as NAD or SPPH) and its annexes, shall not be subjected to tax inquirys, investigation, and criminal prosecution against taxpayers. Under the Policy II, the benefits are notice of Tax Assessment (SKP) will not be issued unless data of undisclosed assets (acquired during 2016-2020) is found (income taxes, withheld income taxes and VAT, exclude withheld taxes but unpaid) and the data disclosed on the Notice of Asset Disclosure (briefly known as NAD or SPPH) and its annexes, shall not be subjected to tax inquirys, investigation, and criminal prosecution against taxpayers. She also mentioned that VDP Participants of policy II cannot resubmit any request of tax refuns and legal actions. Breach of the condition may results in the revocation of SKET.
Mr. Sebastien Gautier explained that the implementation of tax amnesty has been quite successful in Indonesia throughout history. He also briefly explained the laws and regulations adding the material that has already been in the presentation of Mrs Dwi Astuti. He also mentioned about the documents to apply, the amend of assets declarations detail, the revocation of asset declaration letter, holding period of assets, and the eligible investment.