Indonesia’s Finance Ministry General Hadiyanto has released a press statement regarding the new tax amnesty scheme that officially came into ruling on the 18th of July.
Mr Hadiyanto was happy to inform press reporters at the Coordinating Ministry for Economic Affairs that the system will be ready for all Indonesian taxpayers who want to sign up, make declarations, and tax reclamations.
Indonesia’s Director General of Taxes confirmed the rules governing the processes for the new system, as well as the appointment of a corresponding bank for the imported capital to be chosen imminently. A third rule regarding entities that tax payers can invest their imported capital will be confirmed shortly.
Now the scheme has been implemented, taxes will vary anywhere from 3 -10%. Tax payers can choose to declare earlier to get the lower rate. And any previously untaxed assets can be sent directly to Indonesia for the more favourable rate.
If everything goes as hoped by the government, Indonesia is expecting to gain 1,050 trillion rupiah from capital repatriated from offshore accounts and therefore locally invested. This additional investment will also add 175 trillion rupiah to its tax reserves, and benefit the Indonesian economy exponentially.