Sri Mulyani Emphasizes Tax Amnesty Volume II Facilities Are Not a Threat

Minister of Finance Sri Mulyani emphasized that the Voluntary Disclosure Program (PPS) or often called tax amnesty volume II is not a threat from the government to taxpayers, but a facility in order to improve compliance.

“This is not a threat, but a facility,” said Ani, her nickname at the Socialization of the Law on Harmonization of Tax Regulations (UU HPP), Tuesday (14/12).

The state treasurer explained that this program aims to improve taxpayer compliance in disclosing all their assets to the state. Furthermore, taxpayers are expected to fulfill their tax obligations on the assets they own.

“If there are still tax obligations from 2016-2020 that have been forgotten, have not been submitted, you can correct it. That’s why it’s called voluntary disclosure,” she said.

According to her, this facility can be utilized by taxpayers. Even if they are subject to a special tariff, the amount is lower than the tariff provisions when the government finds assets that have not been reported by taxpayers and takes action outside the program.

As an illustration, Ani described the tariff that will be charged, which is 18 percent for property abroad that is not repatriated. Then, a 14 percent tariff for repatriated overseas property and domestic property.

Meanwhile, foreign assets repatriated and domestic assets invested in State Securities (SBN) or downstream natural resources are only 12 percent. These various tariff provisions are valid for a period of only six months, from January 1 to June 30, 2021.

“What’s the benefit? If you have the property before 2016 and then we find it, and the chances of us finding it are very high, if this is a body property, you need to pay 25 percent plus you will be fined 200 percent, this is already regulated in the PMK,” she explained. .

Meanwhile, if the government finds that the taxpayer’s assets have not been reported individually, the government will impose an income tax rate (PPh) plus a 200 percent fine. For example, if the assets are above IDR 5 billion, the income tax rate is 35 percent plus a fine of 200 percent.

“So it’s better to come, after that it’s clean, relieved,” she said. On the other hand, the former managing director of the World Bank stated that the difference between the tax amnesty volumes I and II is only in the tariff policy, where the tariff is the same for six months. Meanwhile, previously, the government applied a tariff difference per three months of program implementation.