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Tax office dismisses speculation over extra law on Tax Amnesty
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Motorists drive underneath an advertisement for tax amnesty at a pedestrian bridge in Central Jakarta on July 18. (JP/Dhoni Setiawan)
T
he tax office has firmly dismissed rising speculation that says the government is working on a Government Regulation in Lieu of Law (Perppu) to extend the first period of the tax amnesty program.
According to the Tax Amnesty Law, the first period of the tax pardon program will end on Sept. 30, giving taxpayers less than 10 days to join the program and enjoy the lowest penalty in exchange for the amnesty.
"The tax amnesty period is regulated by the Law; a Perppu can only be used in an emergency situation. In this case, it is not an emergency," said Directorate General of Taxation spokesperson Hestu Yoga at the Indonesia Stock Exchange (IDX) building in Jakarta on Tuesday.
He suggested that taxpayers who want to enjoy the lowest penalty rate in the first phase of the program split their reports, as the Tax Amnesty Law allows taxpayers to make three separated submissions for the tax amnesty.
"So let's say you have only managed to document $80 million assets of the total $100 million. Then submit the $80 million assets first, and then you can submit the remaining $20 million in the second period," Hestu said.
Sept. 30 is the deadline set for the first phase of the tax amnesty program, during which the penalty rates are the lowest. The rates will gradually increase in the second phase that ends in December and in the last phase that ends in March 2017. (ags)
