Gen­er­at­ing Wealth Post-Amnesty in In­done­sia

Tax Amnesty has ended. En­trepreneurs and in­vestors can look for­ward to an era of trans­parency so as to fo­cus on their busi­nesses to gen­er­ate wealth in In­done­sia.

Indonesia Expat - - FOOD & DRINK -

Was the re­sult of Tax Amnesty as the In­done­sian Tax Depart­ment ex­pected?

30.044.103 (more than 30 mil­lion) tax­pay­ers par­tic­i­pated (in­di­vid­u­als and en­ti­ties - com­pa­nies, foun­da­tions, firms, CVs, part­ner­ships, joint op­er­a­tions) rep­re­sent­ing ap­prox­i­mately 29,4% of the to­tal num­ber of tax­pay­ers (ex­ist­ing and new). The In­done­sian Fi­nance Min­is­ter, Sri Mulyani, stated that this pro­por­tion was ex­pected to be much higher. The pro­gram only achieved its tar­get for the Dec­la­ra­tion of Funds.

What will the In­done­sian Tax Depart­ment do now?

The Tax Depart­ment will be strict in en­forc­ing tax rules and will ac­tively pur­sue non­par­tic­i­pants in Tax Amnesty. The Tax Depart­ment uti­lizes soft­ware ap­pli­ca­tions such as Aka­sia, Akrab, Face­book, LinkedIn, In­sta­gram, pro­grams and re­quire­ments such as AEOI Coun­try-by-Coun­try Re­port to ac­cess bank data and as­set in­for­ma­tion. This data is in turn used to model tax­pay­ers' be­hav­ior in terms of in­come and spend­ing pat­terns, to es­ti­mate the tax amount in ar­rears. The Tax Amnesty Law states that the Tax Depart­ment will be­gin to make in­quiries to tax­pay­ers on their as­sets 1 (one) month after the Tax Amnesty pro­gram closes, which is 1 May 2017. We ex­pect that many let­ters and emails will be sent to non­par­tic­i­pants in Tax Amnesty. The Tax Amnesty Law also states that par­tic­i­pants in the pro­gram, who have de­clared own­ing as­sets in the name of a nom­i­nee, have un­til 31 De­cem­ber 2017 to tidy up their tax state­ments. This is done by trans­fer­ring the ti­tle / own­er­ship / assignment of the de­clared as­sets to the names of the right­ful own­ers. Tax­pay­ers should re­port their post-Amnesty as­sets com­pletely in their 2017 An­nual Tax Re­port due on 31 March 2018 for in­di­vid­u­als and 30 April 2018 for en­ti­ties.

How will tax trans­parency be en­forced?

Ap­proweb, Ap­p­likasi Pro­fil Ber­ba­sis Web (On­line Pro­fil­ing Ap­pli­ca­tion) is be­ing ap­plied for all res­i­dent tax­pay­ers. It com­piles data from var­i­ous sources to con­struct tax­pay­ers pro­files, con­tain­ing in­for­ma­tion such as pre­vi­ous tax re­ports; pro­jected in­comes; spend­ing trends; share / ve­hi­cle / land own­er­ship; pub­lic and mu­nic­i­pal ser­vices data; busi­ness li­censes (SIUP, TDP, izin lokasi, izin us­aha per­tam­ban­gan / perke­bunan, ho­tel li­censes, etc.); pro­fes­sional li­censes (ac­coun­tants, ad­vo­cates, value rs, doc­tors, etc .), among oth­ers. Dis­crep­an­cies will be in­ves­ti­gated. Ap­proweb will be uti­lized in many reg­u­lar busi­ness func­tions, such as prop­erty and share trans­ac­tions. For ex­am­ple, although there are cur­rently no reg­u­la­tions in place to block prop­erty trans­ac­tions, our clients have been queried as to why the trans­acted prop­erty is not listed in the prop­erty owner’s Tax Dec­la­ra­tions. An­other ex­am­ple is within the Min­istry of Law and Hu­man Rights (MLHR) Law Num­ber 1 Year 2016. The law amended sev­eral com­pany in­cor­po­ra­tion rules stated in MLHR Law Num­ber 4 Year 2014, such as re­quir­ing the No­tary to keep a copy and there­fore im­plic­itly be re­spon­si­ble for the ex­is­tence of such doc­u­ments as tax­payer ID (NPWP) and re­ceipts is­sued by the Tax Depart­ment for tax re­port sub­mis­sions of the com­pany share­hold­ers. This re­quire­ment is for ANY change to the Com­pany by­laws, such as, amend­ments to the Ar­ti­cles of As­so­ci­a­tion and changes to com­pany man­age­ment / share­hold­ers. We ad­vise that con­tin­ued full dis­clo­sure of in­come is the most pru­dent path for in­di­vid­ual and cor­po­rate tax­pay­ers.

So how to gen­er­ate wealth in In­done­sia?

Pu­tranto Al­liance pro­vides var­i­ous ag­ile ser­vices, in­clud­ing le­gal and busi­ness ad­vi­sory; com­pany and rep­re­sen­ta­tive of­fice es­tab­lish­ment; tax le­git­i­mate own­er­ship of lim­ited li­a­bil­ity com­pany shares; ap­pli­ca­tion for lo­ca­tion per­mits (ijin lokasi) for large land parcels; among oth­ers. For busi­ness and in­di­vid­u­als, we pro­vide auc­tion house Ser­vices for as­set dis­posal, and bridge fi­nanc­ing for paid up cap­i­tal in PMA Lim­ited Li­a­bil­ity Com­pa­nies.

How should I op­er­ate my busi­ness in a man­ner that re­duces risk?

Pu­tranto Al­liance also of­fers a wide range of ser­vices to help your busi­ness in ev­ery phase of its oper­a­tion. Please re­view the ma­trix be­low show­ing a sam­pling of our ser­vices to get an idea how we are able to con­trib­ute to your ac­cu­mu­la­tion of wealth in In­done­sia. We per­form th­ese func­tions in­ter­nally, we can help you cre­ate a tai­lored so­lu­tion as well as de­velop a roadmap for your in­vest­ment in In­done­sia. For other spe­cific needs, we in­vite you to visit our of­fice for con­sul­ta­tion.

Newspapers in English

Newspapers from Indonesia

© PressReader. All rights reserved.