Indonesia plans a 'tax amnesty' for overseas bank account owners

By in

Indonesia’s taxation office seeks to provide a tax amnesty policy to be implemented during 2016 in order to repatriate €136 billion from funds situated in overseas banks.
The taxation office expects that tax revenues of Rp 60 trillion (€4.1 billion) could come in through a tax amnesty policy, in an effort to return billions in funding to Indonesia, currently situated in overseas banks.

Sigit Priadi Pramudito, General Director of the Finance Ministry’s taxation office said the tax amnesty policy aims to increase the government’s revenue and help the nation’s economy, as it would lead to the repatriation of funds from foreign banks.

The Indonesian Government is working on strategies to raise the state’s revenue through the tax amnesty policy however the legal basis of the policy remains unfounded. The issue evolves as a necessary prerequisite in the spotlight, both for the Government and Parliament, as projections for next year’s state budget foreshadow an increase in such demands.

Aside from the tax amnesty, two additional programs were included in the recently released economic package. The tax office is targeting additional revenue from an asset revaluation policy as well as a debt to equity ratio (DER) policy.