Sunday, July 10, 2016

Indonesia President launches implementation of Tax Amnesty Law

JAKARTA - Indonesia President Joko Widodo today will launch the implementation of the Tax AmnestyLaw, which has been enacted into law by the House of Representatives. Under the new law, taxpayers who declare their assets will be taxed at between 2 to 10 percent. While, for small and medium enterprises will be offered special tax rates of 0,5 to 2 percent, depending on the size of their declared assets. Morgan Stanley estimated that the tax amnesty would increase government revenue by 0,9 percent of gross domestic product (GDP) and that 2016 government revenue was likely to rise 8,5 percent year-on-year. (*)