√ Definition of Tax Amnesty, Background, Purpose, Benefits, Regulations and Examples

Definition of Tax Amnesty, Background, Purpose, Benefits, Regulations and Examples – Tax Amnesty or tax amnesty. Is a government program for taxpayers to pay all taxes on the wealth they have.

Definition of Tax Amnesty, Background, Purpose, Benefits, Regulations and Examples

For more details about tax amnesty, follow the following review about the definition of tax amnesty, background, purpose of tax amnesty, benefits, regulations, advantages and examples.

Definition of Tax Amnesty

Tax Amnesty is an abolition of taxes that should be owed, not subject to tax administration sanctions and criminal sanctions in the field taxation, by disclosing assets and paying redemption debts as stipulated in Law no. 11 of 2016 concerning Forgiveness Tax.

So the meaning of Tax Amnesty according to Law no. 11 of 2016 is an abolition of taxes that should be owed, not subject to sanctions tax administration and criminal sanctions in the field of taxation, by way of disclosing assets and paying the ransom as stipulated in the law This.

Tax Amnesty background

Tax Amnesty in Indonesia is carried out because of some background or something that underlies it, namely:

• Tax Amnesty is enforced in Indonesia because there are a lot of property belonging to the Indonesian state, both internal and external or abroad which have not been or have not all been reported in the Annual Tax Return Income.
• Tax Amnesty aims to increase state revenues and economic growth as well as awareness and community compliance in carrying out the obligation to pay taxes, therefore issued a Amnesty policy Tax.
• The case of the Panama Papers, namely a document that lists the number of businessmen who have assets abroad, especially in tax-free countries such as the country of Panama.

Purpose of Tax Amnesty

Tax Amnesty has objectives in its implementation, namely:

• In order for the number of taxpayers to increase and aware of the importance of paying taxes
• In order to increase tax revenue in the short term
• In order to integrate an informal sector into the economy
• So that unused funds can be utilized
• An initial step in the new regime's policy of imposing greater sanctions

Benefits of Tax Amnesty

There are several benefits from this tax amnesty or tax amnesty for several parties, let's take a look.

Benefits of Tax Amnesty for the Government

With the implementation of the tax amnesty or tax amnesty, it will increase the government's income in the tax sector, this is very effective in reducing diminishing state revenues. Tax Amnesty will automatically attract funds from abroad to Indonesia and create a new tax source.

Benefits of Tax Amnesty for Developers

The property sector will grow with the implementation of this tax amnesty, because this policy is related to taxes which are an indicator of the revival of a property business in Indonesia.

Benefits of Tax Amnesty For Investors

With the enactment of this tax amnesty, not only the government and developers are happy, investors are also more daring in buying property. Investors are not afraid to invest their money in Indonesia.

Benefits of Tax Amnesty For Taxpayers

The benefits of tax amnesty for taxpayers are as follows:

• Write off tax payable that has not been issued a tax assessment, is not subject to tax administration sanctions, and is not subject to criminal sanctions in the field of taxation, for a tax obligations in the tax period, part of the tax year, and the tax year, up to the end of the latest tax year relating to income tax and VAT tax obligations or PPnBM.
• Elimination of a tax administration sanction in the form of interest or fines.
• No tax audit, initial evidence examination, and investigation of Tax Crimes was carried out.
• Termination of a tax audit, examination of initial evidence and investigation of criminal acts in the field of taxation.

Tax Amnesty Regulations

The following are the rules of the tax amnesty.

Subject and Object of Tax Amensty

Article 1 of the Regulation of the Directorate General of Taxes Number PER-11/PJ/2016 explains what the subject and object of the tax amnesty are, namely as follows:

• Taxpayers who have the obligation to submit an Annual Income Tax Return are entitled to a Tax Amnesty
• Individuals such as farmers, fishermen, retirees, Indonesian workers or subjects of undivided inheritance tax, which is the number whose income is in the Last Tax Year under Non-Taxable Income may not use their right to participate in an Amnesty Tax.
• Indonesian citizens who do not reside in Indonesia for more than 183 (one hundred and eighty three) days within a 12 year period months and do not have income from Indonesia are Foreign Tax Subjects and may not use their right to participate in Amnesty Tax
• In the event that the Taxpayer as referred to in paragraph (2) and paragraph (3) does not exercise his right to take part in the Tax Amnesty, the provisions referred to in Article 18 paragraph (2) of Law Number 11 of 2016 concerning Tax Amnesty do not applied.

Additional Property

Article 2 of the Regulation of the Director General of Taxes Number PER-11/PJ/2016 explains what is meant by additional assets, namely as follows:

• Included in the meaning of Additional Assets as contained in Article 6 of Law Number 11 concerning Tax Amnesty are:
• Inheritance; and/or
• Donations received by blood relatives in a straight line of one degree, which have not been or have not all been reported in the Annual Income Tax Return.
• Inheritance as referred to in paragraph (1) letter a is not an object of Tax Amnesty if:
• Received by heirs who do not have income or have income under Non-Taxable Income; or inherited assets have been reported in the heir's Annual Income Tax Return.
• Gifted assets as referred to in paragraph (1) letter b are not objects of Tax Amnesty if:
• Received by individual recipients of grants who do not have income or have income below Non-Taxable Income; or the gifted assets have been reported in the grantor's Annual Income Tax Return.
• In the event that the heirs as referred to in paragraph (2) and the beneficiary as referred to in paragraph (3) do not use their rights to convey the inheritance and/or assets grants in a Declaration Letter in the context of Tax Amnesty, the provisions referred to in Article 18 of Law Number 11 of 2016 concerning Tax Amnesty do not applied.

Submission or Correction of Annual Income Tax Return

Article 3 of the Regulation of the Director General of Taxes Number PER-11/PJ/2016 explains how the soul of a taxpayer does not participate in the tax amnesty. This is an answer to public anxiety about Tax Amnesty. So, if you don't take part in the Tax Amnesty, then:

• Taxpayers who do not abuse their right to take part in a Tax Amnesty can submit a Annual Income Tax Return or correcting the Annual Tax Return Income.
• Against assets obtained from income that has been subject to income tax or assets obtained from non-income income tax object and has not been reported in an Annual Income Tax Return, the provisions apply as following:
• In the event that the Annual Income Tax Return has been submitted, the Taxpayer corrects the Annual Income Tax Return; or in the event that the Annual Income Tax Return has not been submitted, the Taxpayer may report said Assets in the Annual Income Tax Return.
• In the event that the Taxpayer does not use his right to take part in a Tax Amnesty and the Director General of Taxes finds data and/or information on the Assets obtained from 1 January 1985 to 31 December 2015 which have not been reported in the Annual Income Tax Return as referred to referred to in paragraph (2), the provisions referred to in Article 18 paragraph (2) of Law Number 11 of 2016 concerning a Tax Amnesty applied.

Fair Value of Assets

Article 4 Regulation of the Director General of Taxes Number PER-11/PJ/2016 which explains how to determine the Fair Value of Assets to be used. Then the Fair Value of the Assets is as follows:

• The Fair Value of Additional Assets is a value that describes a condition and condition of similar or equivalent assets based on the assessment of the Taxpayer.
• Fair Value for Additional Assets, namely as referred to in paragraph (1) other than cash or cash equivalents, is the value that describes a condition and condition of similar or equivalent assets based on the taxpayer's assessment at the end of the year Final Tax.
• The Fair Value reported by the Taxpayer in a Declaration of Assets is not tested or corrected by the Director General of Taxes.

Example of Tax Amnesty

Mr. Subagio is an Indonesian citizen businessman. Mr. Subagio has been living in his condo in Singapore for the last 3 years. Mr. Subagio intends to leave Indonesia forever and still has the status of an Indonesian citizen. Mr. Subagio operates his business in Indonesia, Australia, Japan and South Africa. Congratulations, Mr. Subagio did not report an obligation to submit an Annual Income Tax Return, so Mr. Subagio has the right to participate in the Tax Amnesty program.
The solution is:

• Mr. Subagio is a party that has the right to take part in a Tax Amnesty
• In the event that Mr Subagio does not exercise his right to take part in a Tax Amnesty program, Mr Subagio will need to submit an SPT The last annual PPh and previous years by paying the tax owed and the sanctions in accordance with the provisions in the field taxation.

Thus has been explained about Definition of Tax Amnesty, Background, Purpose, Benefits, Regulations and ExamplesI hope this can add to your insight and knowledge in the field of taxation, especially tax amnesty. Thank you for visiting