Coordinating Economic Minister Darmin Nasution has said that authorities are currently discussing a draft government regulation (PP) that refers to Article 18 of the 2016 Tax Amnesty Law, which stipulates that any undeclared asset owned between Jan. 1, 1985, and Dec. 31, 2015, will be considered as additional income and subject to a costly penalty even three years after the end of the tax amnesty in March.

That means the undeclared assets will be charged with income taxe ranging from 5 percent to 30 percent, plus a 200 percent fine.

“This is to give legal certainty for both taxpayers and tax officers to avoid different interpretations because the [tax amnesty] law doesn’t regulate in detail,” Darmin said last week.

Under the proposed rule, the government will categorize punishments in two groups: one for taxpayers who own undeclared assets and did not join the tax amnesty,and those who took part in the program but failed to report their remaining undeclared assets.

Darmin said he expected the new regulation to be completed in the next “one or two months.”

In an effort to fill the state revenue gap amid a weak economy and falling energy and commodity prices, the government kicked off in July last year the ninemonth tax amnesty program.

Popular

Trump 'Board of Peace' opens with money and troops for Gaza

Why Israel fears Indonesian peacekeepers in Gaza

Indonesia, US sign reciprocal tariff agreement