The Jakarta Post
President Joko "Jokowi" Widodo has called on small and medium enterprises (SMEs) to participate in the tax amnesty program, stressing that the program is not only aimed at repatriating the assets of conglomerates but also improving the tax system.
"SMEs with turnover of below Rp 4.8 billion will only be charged a 0.5 percent rate [of total declared assets]. Join immediately, don’t be late," Jokowi said in Medan on Thursday.
He further said the program provided a good opportunity for people to participate as it had received support both politically and from the public. "The new National Police chief also supports this program," he went on.
Finance Minister Bambang Brodjonegoro added that the program would also urge those with assets under the names of others to be transparent. By adhering to this policy, the owner will be exempt from income tax (PPh) of the declared assets.
"If a person buys a house using the name of their assistant or driver, under the tax amnesty program, the owner will receive a PPh exemption for returning the name to the original owner," he said.
Indonesia implemented a similar policy in 1964 and 1984. However, political turbulence during the 1960s put an end to the policy. An earlier tax amnesty program ended in 1984 as it was not optimal amid booming oil and timber sales. (ags)
Your premium period will expire in 0 day(s)close x