JAKARTA (TheInsiderStories) - The Indonesian Finance Ministry has issued new ruling (No. 119/PMK.08/2016) on procedures for repatriating funds and investment placements that are made possible under the tax amnesty policy.
The ruling provies guidelines for tax amnesty participants on how to repatriate funds and where they could invest their money in the financial market instruments, once they are eligible to take part in the tax amnesty program.
The ruling provides technical aspects of the law on tax amnesty No 11 year 2016. Under tax amnesty policy, tax payers who owe to the government for unpaid tax will receive amnesty on condition they pay certain amount of money (tariff) to the government.
If tax payers are still under investigation, if they apply for the tax amnesty program, the investigation will be ceased immediately, said the Director General for Taxation Ken Dwijugiasteadi said at a press conference late Monday.
Those who can participate can be individuals or business entities. Tax payers will be declared eligible for tax amnesty program once they receive ‘Tax Amnesty Declaration Letter’ fromt he Finance Ministry.
The new ruling also provides guidelines for investment management between tax amnesty participants and fund management companies, which are appointed by the Finance Ministry as Gateway Fund Managers. Under the agreement, Fund Managers are given full authority to manage tax amnesty participants’ funds and will be locked to be invested inside Indonesia for at least three years.
Under the tax amnesty program, participants are required to open an escrow account in commercial banks, totaling 18 banks, which have been appointed by the Finance Ministry as gateway banks. This enable the government to monitor the flow of funds and make it easier for the government to trace them since the funds are treated differently.
The investment instruments that tax payers can invest are as follows: Government bonds, State Owned Companies’ Bonds, private companies’ bonds, real sector investment and other investments.
Ken assured that the identity of the tax amnesty participants will be kept secret. Once they apply for tax amnesty policy, their identity will be replaced by barcode so that no one can reveal their identity even though the data is leaked.
Robert Pakpahan, director general, budget financing and risk management at the Ministry of Finance, express his confidence that many tax payers would take part in this program which will only be offered in limited time (less than one year).
He hopes that the program will increase the government’s revenues from income tax component.
List of Banks become pool fund for repatriate funds :
1. PT Bank Central Asia
2. PT Ban Rakyat Indonesia
3. PT Bank Mandiri
4. PT Bank Negara Indonesia
5. PT Bank Danamon
6. PT Bank Permata
7. PT Maybank Indonesia
8. PT Panin Indonesia
9. PT CIMB Niaga
10. PT Bank UOB
11. Citibank
12. PT DBS Bank Indonesia
13. Standard Chartered
14. Deustche Bank AG
15. PT Bank Mega
16. PT BPD Jabar dan Banten
17. PT Bank Bukopin
18. PT Bank Syariah Mandiri
Of the 18 banks meeting the requirements to become gateway banks, 18 banks have agreed to sign an agreement to become gateway bank. One bank declined to take part in the program.
Investment Managers which are picked to become gateway institution:
1. Schroder Investment Management Indonesia
2. Eastspring Investment
3. Manulife Aset Manajemen
4. Bahana TCW
5. Mandiri Manajemen Investasi
6. BNP Paribas Investment
7. Batavia Prosperindo Aset Manajemen
8. Danareksa Investment
9. BNI Asset Management
10. Panin Asset Management
11. Ashmore Asset management
12. Sinarmas Asset management
13. Trimegah Asset
14. Syailendra Capital
15. PNM Investment Management
16. Ciptadana Asset Management
17. Bowsprit Asset Management
18. Indosurya Asset Management
Securities Firms :
1. Sinarmas Securities
2. Panin Sekuritas
3. CLSA Indonesia
4. Mandiri Sekuritas
5. CIMB Securities
6. Trimegah Securities
7. RHB Securities
8. Daewoo Securities
9. Bahana Securities
10. IndoPremier Securities
11. UOB Kay Hian Securities
12. BNI Securities
13. Sucorinvest Central Gani
14. Danpac Securitiese
15. Panca Global Securities
16. MNC Securities
17. Pacific Capital
18. Mega Capital
19. Pratama Capital