The taxpayer declares that he is working abroad, earning foreign income, withholding his taxes abroad, and buying his property abroad. Should taxpayers participate in Amnesty Taxes?
Every taxpayer, both an individual and an institution having an obligation to submit an Annual Income Tax Return, may follow the Amnesty of Taxes, except the Tax Payer under investigation and P-21, in the judicial process, and a Taxpayer who is serving a criminal sanction in the tax field. Therefore, for Taxpayers who only have tax obligation as cutter/ collector only cannot follow Tax Amnesty. For example, Taxpayer Treasurer or Taxpayer who has no obligation to submit SPT Annual Income Tax Agency such as Taxpayer Joint Operation.
Are the property/ holding referred to in Tax Amnesty the same as the definition of property included on the balance sheet? For example, is prepaid rent an Tax Amnesty object?
It is. The property referred to in the Tax Amnesty is equal to the property included in the balance sheet, including prepaid rent.
Does the Debt support document apply to the Additional Debt or the entire Debt (including those already reported in the Final Entitlements)?
The Debt Support Document referred to in Tax Amnesty only applies to the Additional Debts not yet disclosed in the Annual Income Tax Return.
Does the property ownership information apply to the Additional Assets only, or to the Entitlement of the Property (including those already reported in the Final Purchase Agreement)?
Property ownership information applies to Additional assets only, i.e. new treasures not yet disclosed in the Annual Income Tax Return.
To follow the tax amnesty, is any Taxpayer without an NPWP required to have SIUP?
No, the obligation to include SIUP number in the Statement Letter is only for Taxpayers who previously have SIUP.
The Taxpayer already listed the Property in the last Annual Income Tax Return, but the naming of the Property is wrong, such as apartment, savings account, and deposits recorded. Is the Home or deposit an additional Asset that Amnesty can propose?
In the case of error purely caused by the Taxpayer misclassifying the type of property in the last Income Tax Return, the property is reclassified in the attachment of the Letter of Statement of Property, the "Reported Property Value in the last Income Tax Return" section, and should be explained in the information column that the Treasury has previously recorded as (...) on the income tax return. The value of the property must be the same as stated in the SPT of 2015.
What about the treatment of unit linkage insurance for Amnesty Taxes?
Insurance that contains the value of the investment as well as defined benefits (e.g. benefits received when a beneficiary reaches a certain age or certain definite condition) is considered a Treasure. Thus education insurance and unit link insurance are assets that may be included in the Amnesty Tax program.
The taxpayer make declarations in the country, but before 3 years the taxpayer is transferring property abroad, what is the treatment according to Tax Amnesty Act?
When the taxpayer makes a domestic declaration, the ransom tariff used in accordance with the provisions of the Amnesty Law is 2%, 3% or 5% depending on the delivery period of the Statement Letter. However, if before 3 years the WP diverts the asset abroad, then all the Additional net assets listed in the Letter of Credit shall be treated as income for the year 2016 and subject to taxes and administrative sanctions in accordance with the provisions of the laws and regulations in the field of taxation.
Can additional Asset which has received Amnesty Taxes be depreciated in accordance with the provisions of the Income Tax Act?
In accordance with Article 14 paragraph (2) and paragraph (3) of Law Number 11 of 2016 concerning Forgiveness of Tax:
- On the additional property, which is disclosed in the Statement Letter in the form of intangible assets, cannot be amortized for tax purposes.
- On the additional property disclosed in the Statement Letter in the form of tangible assets, cannot be depreciated for tax purposes.