Fin Min revises the minimum balance supervised by tax office Rp 1 billion

Finance Minister Sri Mulyani Indrawati - Photo by Finance Ministry

JAKARTA (TheInsiderStories) – Ministry of Finance revised the minimum balance that should be reported by the domestic taxpayers and can be requested by the Directorate General of Tax from Rp200 million to Rp1 billion, it said in a press release oN Wednesday.

“Considering the data on bank accounts, tax data, including those from the tax amnesty program, as well as business data, the government decided to raise the minimum limit of the balance of financial accounts that must be reported periodically from Rp200 million to Rp1 billion,” said the Head of the Secretariat Bureau General of the Ministry of Finance Nufransa Wira Sakti in a written statement.

The decision was made after the government heard and paid attention to community and stakeholder inputs to reflect a sense of justice and to show the alignment of micro, small and medium enterprises, and administrative convenience to financial institutions in reporting.

“With the change in the minimum limit to Rp1 billion, then the number of accounts that must be reported is 496,000 accounts or 0.25% of the total existing accounts in the banking today,” he added.

Finance Minister Sri Mulyani Indrawati signed a Minister’s Decree on the government’s access to taxpayers’ financial records as an implementation of the Government Regulation in Lieu of Law (Perppu) No. 1 of 2017 of Access to Financial Information for Tax Interests.

She explained that the regulation is an implementation of a policy on automatic exchange of information (AEoI) for tax purposes introduced by the Organization for Economic Co-operation and Development (OECD).

Starting from 2018, the Indonesian Government will be able to obtain information of Indonesian taxpayers’ assets parked overseas and have not been declared during the tax amnesty program.

This Minister’s Decree will further regulate the procedures of financial information reporting, account identification, the financial agency’s documentation obligations, sanctions for in-compliant financial agencies, secrecy of financial information received by the Directorate General of Taxation, and sanction for tax officials who disclose the secrecy.

The decree has already taken effect since May 31. This week, Sri Mulyani will attend the Organisation for Economic Co-operation and Development (OECD) Ministerial Council Meeting in Paris in order to ratify the multinational instrument to implement tax treaty related measure to prevent Base Erosion and Profit Shifting on June 7.

The implementation of anti-BEPS and AEol, according to Sri Mulyani, shows Indonesia’s commitment to fighting against tax evasion often practiced by multinational enterprises and the conglomerates.

Beside comply to OECD commitment, the minister stressed it that the policy has been made to push the tax revenues in this year. Until May, the tax office reported the tax revenue recorded Rp463.5 trillion, which is 30.9 percent from the 2017 State Budget’s target Rp1,498.9 trillion.

According tothe Directorate General of Financing and Risk Management at the Finance Ministry, Robert Pakpahan the tax revenues achievement is a positive growth. This is 13.9 percent better than the previous year from the same period in 2016 was minus 6.5 percent.

He added, non-gas and oil tax revenue reached Rp396 trillion or 31.7 percent of the 2017 State Budget target. The non-gas and oil tax income grew 13.4 percent compared to the same period last year.

The custom and excise revenue for May reached Rp45.7 trillion or 23.9 percent from its intended target of Rp191.2 trillion. The income grew 6.7 percent compared to the previous year. Meanwhile, the oil and gas tax revenue reached Rp21 trillion or 58.4 percent from its Rp35.9 trillion target, which grew 47.6 percent. (RF)