Strict Warning From Sri Mulyani: There Is A 200 Percent Sanction For Taxpayers Who Don't Want To Reveal Their Assets Abroad

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani firmly stated that the government would impose sanctions of 200 percent for Indonesian citizens who do not participate in the voluntary disclosure program (PPS). This was explained by the Minister of Finance in the socialization of the Tax Harmonization Law (HPP) in Bali today.

"This is your chance to avoid 200 percent by joining the PPS program," he said through a virtual channel, Friday, November 19.

In his explanation, the Minister of Finance said that taxpayers who had participated in the PPS would receive a certificate from the Ministry of Finance. Meanwhile, the 200 percent administrative sanction is contained in Article 18 paragraph 3 of Law 11 of 2016 concerning Tax Amnesty.

"Data or information originating from a letter of disclosure of assets related to the implementation of this Law cannot be used as a basis for investigation, investigation, and or criminal prosecution of taxpayers," he said.

Furthermore, the state treasurer revealed that there are two types of PPS. First, is the tax obligation before 2015 which should have participated in the previous tax amnesty program.

“For the first type, a tariff of 11 percent is imposed for assets abroad that are not repatriated. Then, 8 percent for repatriated overseas assets and domestic registered assets, and 6 percent for repatriated overseas assets and domestic assets that are disclosed to be then invested in SBN or downstream renewable energy programs," he said.

Meanwhile, the second type of PPS is for assets originating from 2016 to 2020 but not yet reported in the 2020 annual tax return.

"The tariff is 18 percent for foreign assets that are not repatriated, 14 percent for repatriated and domestic assets, and 12 percent for repatriated assets from abroad and domestic assets invested in SBN and energy downstream programs," he added.

Just so you know, the amount of the levy can only be used by taxpayers for six months, starting from January 1, 2022 to December 30, 2022.