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Rp 105t of assets repatriated through tax amnesty
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Taxpayers consult with tax officials as they apply for the tax amnesty at a tax office in Sidoarjo, East Java, on Aug. 8. (Antara Photo/Umarul Faruq)
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round Rp 105 trillion (US$7.9 billion) of assets repatriated in the government's tax amnesty program had entered the country's financial system as of Jan. 27, according to Financial Services Authority (OJK) data.
The figure is lower than the Rp 141 trillion that had been promised by the program's participants before the end of last year.
"Of the total repatriated funds, Rp 74.8 trillion or 71 percent is still deposited in the banking system," OJK chairman Muliaman D Hadad told journalists in Jakarta on Friday.
Around 1 percent of the funds has gone into insurance policies, 6 percent into securities, 2 percent into managed investments, while 9 and 11 percent have gone into non-financial investment instruments and other sectors, respectively.
(Read also: Tax amnesty fails to boost taxpayer numbers)
The government has provided a choice of investment channels for the repatriated assets, consisting of financial instruments, such as bank deposits, stocks and government and corporate bonds, as well as non-financial instruments, such as property.
"We together with gateways will continue supervising [the repatriation inflows] to ensure they enter into productive financial and non-financial sectors," Muliaman said.
Gateways are financial institutions, including banks, securities firms and asset managers, which may receive overseas assets brought back by tax amnesty participants into the country.
The program, whose last phase will end on March 31, has booked Rp 104 trillion in redemptions or penalty payments, far short of the targeted Rp 165 trillion, and Rp 4.2 quadrillion in declared and repatriated assets as of Friday afternoon. (bbn)
