The government now requires retirees to hold taxpayer registration numbers, particularly those whose annual income exceeds the non-taxable revenue of Rp 15.84 million (US$1,667) a year.
Faisal Rachman, corporate secretary of state pension insurance company PT Taspen, said Thursday that failure to comply with the regulation would be subject to income tax which is set 20 percent higher than those who hold taxpayer registration number.
Faisal was introducing the finance ministerial decree dated July 24, 2009 on mandatory registration for retired private and government employees to urge the public to obtain taxpayer numbers at the nearest tax offices.
Taspen has registered 4.22 million active participants, a half of them retired as of Dec. 31, 2008.
Meanwhile, Director General of Tax Mochamad Tjiptardjo said the government would push regional legislative councils and local government officials to register themselves with the tax office as part of the government’s efforts to increase tax revenue to Rp 528 trillion.
“If they refuse to register, we will report them to their bosses,” Tjiptardjo was quoted by Antara.
He added the tax office would also verify the assets reported by House of Representatives lawmakers and public officials in the last five years.
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