In an effort to expand the taxpayer base, the Indonesian Government is expected to announce the introduction this year of an amnesty for those who have failed to make tax declarations.
In the context of low oil prices and continued global economic uncertainty, the Government has already announced that it will focus on improving tax compliance rates in a bid to raise Indonesia’s relatively low tax-to-GDP ratio to fund infrastructure and welfare spending policies.
Finance Minister Bambang Brodjonegoro has now confirmed, in a recent interview with The Jakarta Post, that the Directorate General of Taxation will look to increase the number of taxpayers in Indonesia by way of an amnesty.
It has been indicated that the amnesty, which would entail a legislative amendment, would not be available for those who have already been identified as non-payers, but would waive penalties and the risk of prosecution for those who declare and pay all their due taxes. It would also be accompanied by increased penalties for non-compliance discovered in the future.
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