Indonesian Tax Amnesty discussion

This year, the Indonesian Government has set large targets for tax collection and is dead set on reaching it. However, tax compliance in Indonesia has been low for a long time. Enter the Tax Amnesty program (Amnesti Pajak) aimed at collecting some taxes from undeclared assets in Indonesia and abroad without the tax payers incurring huge penalties and fines in un-paid back taxes.

This project is supposed to boost the Indonesian economy by injecting a large amount of liquidity in the country to support the infrastructure projects laid-out by President Joko Widodo’s administration.



However, the rules of the Tax Amnesty program aren’t that clear. Who does it apply to exactly? What are the risks with declaring un-declared assets overseas? Do foreigners have to/can participate? If so which assets are eligible?

All these questions and more have been answered in one of the hottest conversation topics on Expat Indo Forum: Hot Subject 2016 Sept – Tax Amnesty

New information has also been highlighted in this thread: Tax Amnesty: Gov’t to extend administrative period, but penalties to be paid on time.

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