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Jakarta Post

Taxable income adjustment next year

  • Hans David Tampubolon

    The Jakarta Post

Jakarta   /   Fri, August 24 2012   /  07:45 am

Finance Minister Agus Martowardojo said that regulations to increase non-taxable income thresholds could be issued by the end of August but the policy might only be implemented next year.

Separately, head of Indonesia’s tax inspectorate, Fuad Rahmany, told reporters that increasing non-taxable income thresholds would require a massive amount of administration.

“Administrative work is required, not only from the taxation office but from taxpayers. A lot of readjustments are needed to comply with the new regulations,” Fuad said.

The idea of increasing the threshold rate came from President Susilo Bambang Yudhoyono.

Yudhoyono suggested that the PTKP rate be increased from Rp 15.8 million (US$1,664.21) per year to Rp 24 million. A person who earns around Rp 2 million monthly will not have to pay tax.

Yudhoyono said that the government wanted to ease t...