JAKARTA. Minister of Finance Sri Mulyani recently released Minister of Finance Regulation No142/2016 that revises some regulations on tax amnesty.

According to Expert Staff for Tax Obedience at Ministry of Finance Suryo Utomo, the new regulation allows taxpayers, who have overseas assets, to not dissolve their SPV (special purpose vehicle). However, the taxpayers are subject to pay the redemption fees of overseas assets declaration.

Minister of Finance also released Regulation No 141/2016 that relaxes administrative requirements for taxpayers to join the first phase of tax amnesty. The new regulation stipulates that taxpayers do not need to enclose details of assets if the items are less than 20. Another facility offered by the new regulation is the issuance of temporary receipt by Director General of Taxation under certain extra ordinary condition.

The new regulation also stipulates income tax exemption for rights over land or building, which the tittle has not yet been transferred from developer to the buyer.

In addition to the tax exemption, the regulation also allows the extension of time limit for reporting the shift and realization of additional investment assets.  In this case, the new regulation changes the time limit for the reporting from every six months to once in a year.

Under the new regulation, Suryo said that taxpayer is allowed to revoke submitted asset declaration.

Meanwhile, Director General of Taxation has also released Regulation No13/2016 on the Acceptance of Declaration Letter on the Last Week of The First Period of Tax Amnesty. Director General of Taxation Ken Dwijugiasteadi said that tax office will accept incomplete administrative documents and allows taxpayers to complete the dossiers during the time extension. Ken added that under this scheme, taxpayers need to settle a 2% of redemption fees, as required for participation in the first phase of tax amnesty. (Translator: Muhammad Farid)

Editor: Sanny Cicilia