Finance Minister Urges Taxpayers to Participate in Voluntary Disclosure Program

Minister of Finance Sri Mulyani (Photo by: PR of Cabinet Secretariat/Agung)

Minister of Finance Sri Mulyani Indrawati has urged taxpayers to participate in the Voluntary Disclosure Program (PPS) in accordance with Law Number 7 of 2021 on Harmonization of Tax Regulations (HPP).

The program that is in place from January 1 to June 30, 2022 allows taxpayers to voluntarily report or disclose their tax obligations that have not been fulfilled.

The program consists of two policies. First, it is intended for taxpayers who have not disclosed their possessions obtained before December 2015.

“There are taxpayers who have not participated in the first tax amnesty, so we are giving them another chance. This is called the first PPS policy,” Sri Mulyani said, quoted from the official website of Ministry of Finance, Monday (02/07).

The first PPS policy covers the final income tax imposition of 11 percent for non-repatriated possession of assets abroad, 8 percent for repatriated possession of assets abroad and possession of domestic assets, and 6 percent for repatriated possession of assets abroad and possession of domestic assets invested in state securities or downstreaming of renewable natural resources/energy.

Meanwhile, the second PPS policy is implemented for taxpayers who have not disclosed possession obtained from 2016 to 2020 in the 2020 annual tax return. The final income tax imposition is 18 percent for non-repatriated possession of assets abroad, 14 percent for repatriated possession of assets abroad and possession of domestic assets, and 12 percent for repatriated possession of assets abroad and possession of domestic assets invested in state securities or downstreaming of renewable natural resources/energy.

“This is a policy that, once again, gives an opportunity for voluntary disclosure to improve obedience and discipline,” Sri Mulyani underscored, while reiterating that international cooperation in tax has been reinforced since 2016.

Besides Automatic Exchange of Information, the Minister added, the Global Taxation Principle that makes it harder for all citizens in every country to evade tax was also agreed in the G20.

“I also hope that this opportunity can be used by individual or institutional taxpayers,” she remarked.

For the record, as of February 6, 2022, data from pajak.go.id/pps shows that the number of PPS participants has reached 10,670 taxpayers with a total net possession of Rp10,236.89 billion and the state revenue collected of Rp1,098.79 billion. (PR of Ministry of Finance/UN) (DH/MUR)

The official website of Ministry of Finance can be accessed through this link.