G20 Presidency Spokesperson Maudy Ayunda Said, There Is A Potential Of IDR 683 Trillion Entering The State's Pocket From Tax Transparency

Government Spokesperson for the G20 Indonesia Presidency Maudy Ayunda. (Capture the State Palace YouTube screen)

JAKARTA - The government has stated that there is a potential inbound income of up to IDR 683 trillion that can enter the state's pockets if there is transparency in international taxation. This was stated by the Government Spokesperson for the Indonesian G20 Presidency, Maudy Ayunda.

According to her, a lot of potential tax revenues are still parked abroad due to constraints on international agreements. She explained that tax transparency became an important discussion in the G20 elite forum in Bali some time ago because all countries can benefit if there is tax transparency.

Maudy said that Indonesia would also enjoy the benefits if there was tax transparency because the potential for revenue from abroad is very large. However, this potential can be realized if there is an international agreement.

"Indonesia itself is one of the countries that has enjoyed the benefits of tax transparency. One of them is the mapping of potential inbound income of IDR 683 trillion in the form of dividends, interest, sales, and other income", Maudy said in a statement at the State Palace, quoted Friday, July 22.

Inbound income is income from domestic tax subjects who earn income from foreign sources. This means that the income potential of Indonesian taxpayers has dividend income, interest, sales, and other income from abroad reaching IDR 683 trillion.

At the end of 2021, the Directorate General (DG) of Taxes said that based on the comparison of income data through the automatic exchange of information (AEoI) with the annual notification letter (SPT), only IDR 7 trillion of inbound income had been clarified.

Taxpayers can take advantage of the voluntary disclosure program (PPS) to clarify that data. However, when the PPS was completed, the disclosure of assets abroad was not as large as the potential for inbound income.

The total net assets repatriated were recorded at IDR 13.7 trillion, while the declaration of net assets that remained abroad was IDR 59.9 trillion. The government received income tax (PPh) worth IDR 61.01 trillion.

However, the Directorate General of Taxes did not specify how much the value of PPh comes from repatriation and disclosure of assets abroad. Maudy said that an agreement on tax transparency must be reached by the international community, especially at the G20.

This can create justice in taxation, so it will greatly assist the development and recovery from the impact of the COVID-19 pandemic.

"A fair and transparent international tax system is important to overcome tax evasion and avoidance, prevent transfer pricing, and encourage conducive national taxation policies", said Maudy.