TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Jokowi predicts tax repatriation to peak in September
Change Size
President Joko "Jokowi" Widodo leads a Cabinet meeting at the Presidential Office in Jakarta recently. (Courtesy of the Presidential Office/-)
P
resident Joko "Jokowi" Widodo has predicted capital inflows from asset repatriation during the tax amnesty program’s implementation to peak in September.
Citing data, the President said as of Aug. 1, Rp 3.7 trillion (US$283.53 million) worth of assets had been declared from 344 tax payers, which was still relatively small compared to the government’s target of Rp 3.5 to Rp 4 quadrillion.
"There will be huge inflows during the third week of August to the first week of September," he said during a tax amnesty campaign in Jakarta, Monday.
For the amnesty program, the government has set redemption charges of between 2 to 5 percent for those declaring and bringing back their assets to Indonesia. Tax payers who opt to declare their wealth will only face a penalty rate of 4 to 10 percent, depending on the period.
For those who declare their offshore funds in the first three months of the program’s implementation to Sept. 30, a 4 percent tax tariff will apply. For those who declare their assets between Oct. 1 and Dec. 31, a 6 percent tax tariff will apply. Lastly, a 10 percent tax tariff is offered for those who declare their assets between Jan. 1 to March 31. For small and medium-sized enterprises lower rates of between 0.5 to 2 percent will apply.
Jokowi has been directly leading tax amnesty campaigns in several cities across the country, such as Jakarta, Surabaya and Medan, to send the message of the government's seriousness about the program. (ebf)
