Tax Amnesty Will not Target Small People

Photo Caption: Director General of Taxation Ken Dwijugiasteadi

People with less than Rp4.5 million income per month does not require to have Taxpayer Identification Number (TIN) nor have to pay income tax. Therefore, they do not have to participate in the Tax Amnesty program.

The statements were delivered by Director General of Taxation Ken Dwijugiasteadi in a press statement on Tuesday (30/8).

“Based on Regulation of Directorate General of Taxation Number 11/PJ/2016 on the implementation of Tax Amnesty Law, group of people having income below taxable limit or around Rp 4.5 million per month is not required to apply for tax amnesty,” Ken added.

According to Ken, groups of people who included in the category that having income below taxable limit or around Rp54 million a year are laborers, domestic workers, fishermen, farmers, and pensioners whose  income is solely sourced from retirement money.

“To avoid inconvenience, people with less than Rp4.5 million income per month does not require to have Taxpayer Identification Number (TIN) neither to pay income tax and take part in the Tax Amnesty program. Domestic workers, fishermen, and farmers are eliminated from the program,” Ken firmly said.

Moreover, subject of an undivided inheritance tax who does not earn above the taxable limit and beneficiary who are not working or have income below taxable limit do not need to join the tax amnesty program, Ken added.

Other groups which are not required to take part in the Tax Amnesty program are taxpayers who will correct their Annual Tax Assessment (SPT), taxpayers that their assets have been reported in the SPT by one member of the family, and Indonesian citizen living abroad for more than 183 days in a year that positively do not have any income in Indonesia.

“Sanctions mentioned in the Article 18 paragraph (2) of the Tax Amnesty Law saying that the assets shall be treated as income in the time the assets being discovered by Directorate General of Taxation will not apply to the people or taxpayer,” Ken said.

Ken also ensured that all taxpayers are eligible for the tax amnesty if they want to make use of it, including the State Civil Apparatus, state officials, law enforcement officials, as well as the employees of the Directorate General of Taxation.

“We encourage all public authorities to use tax amnesty program according to their own situation because Tax Amnesty Law will guarantee the confidentiality of the data and identity of taxpayers who participate in the program,” Ken said.

Meanwhile, Ken added, people can correct their SPT to assets that are sourced from income which is subject of tax or assets are sourced from income which is not subject of tax and has not been reported in the SPT.

The fair value of assets other than cash or cash equivalents that has been reported in the Asset Declaration Letter is based on taxpayer assessment, and will not become subject of correction and verification from Directorate General of Taxation. (ANT/ES) (RAS/EP/YM/Naster)