HPP Law Enacted, Sri Mulyani Gives Tax Amnesty Starting January 1, 2022

Illustration (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance, Sri Mulyani said that the government would reopen the tax amnesty facility starting January 1, 2022. This became a stipulation after the Law on the Harmonization of Tax Regulations (HPP) was passed today.

"The Voluntary Disclosure Program (PPS) is expected to increase taxpayer compliance which is valid for 6 months starting January 1, 2022," he said at a press conference on Thursday night, October 7 last week.

According to the Minister of Finance, the tax amnesty, which is the second volume, is believed to be able to encourage the public to report or disclose in order to fulfill the obligation to pay taxes, especially Income Tax (PPh).

For information, the government's second volume of tax amnesty focuses on two major steps. First, individual taxpayers or business entities whose assets have not been reported until December 31, 2015.

In this first policy, taxpayers will get a low-income tax rate facility as long as it is channeled into State Securities (SBN), the renewable energy-oriented industrial sector, and the downstream industry segment. There are three points of imposition of tariffs in this first policy, namely 6 percent, 8 percent, and 11 percent.

The second policy is assets with an unreported 2016 to 2020 acquisition base with tax rates of 12 percent, 14 percent, and 18 percent.