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Low-income people not targeted in tax amnesty
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Director general of taxation Ken Dwijugeasteadi (left to right), Finance Ministry assistant for tax supervision Puspita Wulandari, and tax office spokesperson Hestu Yoga Saksama present an update of the tax amnesty program in Jakarta on Aug. 30. (JP/Ayomi Amindoni)
T
he government has affirmed that people with income below the non-taxable income (PTKP) level of Rp 54 million (US$4,070) a year, or Rp 4.5 million per month, do not need to participate in the tax amnesty program as it is only aimed at the rich.
Finance Ministry director general of taxation Ken Dwijugeasteadi released Regulation No. 11/2016 on Tuesday as technical guidance for the Tax Amnesty Law, answering public confusion over the program’s coverage.
Ken said although the program applies to all tax payers, this program was not obligatory for people with annual income below the PTKP level. It also excludes pensioners whose sole income was sourced from a pension fund and recipients of inherited assets also below the level.
"As well as laborers, household assistants, fishermen and farmers, and Indonesian citizens who stay in the country over 108 days with zero income," he said in Jakarta, adding that taxpayers with income below the PTKP level only need to correct their annual tax declaration (SPTs) by filing previously undeclared assets.
Earlier, people expressed their worries through social media over the possibility that all tax payers had to join the program to report undeclared assets and pay the penalty rate, ranging between 2 to 10 percent of the asset’s value.
As of Tuesday, penalty payments stood at Rp 2.41 trillion, far below the Rp 165 trillion targeted, while repatriated assets were Rp 9.3 trillion of the Rp 1 quadrillion target. Domestically declared assets reached Rp 92.29 trillion and overseas declared assets amounted to Rp 15.36 trillion. In total, declared and repatriated funds have reached Rp 116.99 trillion. (ags)
