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Jakarta Post

This week’s tax updates: Treaty with Singapore, omnibus bill submission

  • Adrian Wail Akhlas, Marchio Irfan Gorbiano and Riska Rahman

    The Jakarta Post

Jakarta   /   Thu, February 6, 2020   /  12:08 pm
The Jakarta Post Image
President Joko “Jokowi” Widodo (left) and Singaporean President Halimah Yacob inspect the honor guard at Bogor Palace, West Java, on Tuesday.(Antara/Hafidz Mubarak A)

The government is amplifying tax collection efforts by submitting an omnibus bill on taxation to the House of Representatives this week as well as signing a double-tax avoidance agreement with Singapore. Finance Minister Sri Mulyani Indrawati said the bill, which would reduce corporate income tax and make internet giants pay taxes, was waiting for approval from the House before its implementation. “Though we cut the corporate tax rate, we will widen our tax base and maximize our spending so that there is no economic shock,” Sri Mulyani told reporters on Wednesday. “This must be maintained because of the global economic slowdown.” Indonesia collected Rp 1.33 quadrillion in tax revenue last year, or 84.4 percent of the full-year target, causing a shortfall of Rp 245.5 trillion, the worst in at least five years. This caused the state budget deficit to ri...