Author: icubic
Tax Revenue Indonesia: Another Tax Shortfall Expected in 2018
The government of Indonesia targets to collect IDR
1,618.1 trillion (approx. USD $120 billion) worth of tax revenue in the 2018 State Budget.
However, this would imply a 20 percent (y/y) increase from the estimated IDR 1,353.0 trillion
that Southeast Asia’s largest economy will collect in 2017. This seems a much too ambitious
growth pace, especially considering the average annual tax revenue growth pace in the
2014-2017 is (an estimated) 5.6 percent.
WTO Rules Against Indonesia In US Coated Paper Tax Dispute
World Trade Organization panel ruled
in favor of US authorities in a dispute concerning trade dispute duties levied by the United
States on Indonesian exporters of coated paper, having earlier twiced deferred forming a
panel.
Indonesia to collect 90% of tax revenue target: CITA executive
Center for Indonesia Taxation Analysis (CITA) executive director
Yustinus Prastowo has estimated that, by the end of this year, the Directorate General
of Taxation will collect 90 percent of the tax revenue target of Rp 28 quadrillion (US$89.85
billion).
Witholding Income-Tax Exemptions of BPJS Assets and the Procedures
Recently, the Ministry of Finance issued Regulation No. 140/PMK.030/2017 on
Procedures for Withholding Income-Tax Exemptions for Investment Returns
and Funds Growth Deriving from Social Security Fund Assets (New Regulation).
The New Regulation is an implementation of Article 5 (4) of the Government
Regulation no. 73 of 2016 on Income Tax for Social Security Programs
Organized by the Social Security Agency (BPJS).
Personal Goods Valued Below $500 Exempted from Import Duty & Tax in Indonesia
The threshold will be raised from USD $250 to USD $500 per person, implying
those people who travel to Indonesia – who carry goods (bought abroad) with
them with a maximum value of USD $500 – will not need to report these goods
to customs and will not need to pay import duties or tax.
Despite Tax Shortfall, Indonesia’s 2017 Customs & Excise Target Met
A closer look at the data show that import taxes in the 1 January 2017 – 28 December
2017 period reached IDR 34.58 trillion (approx. USD $2.6 billion), or
103.9 percent of the government’s full-year target. Excise taxes reached IDR
150.81 trillion (approx. USD $11.2 billion), or 98.4 percent of the target, while
export taxes reached IDR 3.97 trillion (approx. USD $294 million), or 146.9 percent
of the target.