44532
Indonesia Launches 9-Month Tax Amnesty
World Economy

Indonesia Launches 9-Month Tax Amnesty

Indonesia has introduced a tax amnesty as the government hopes to lure back capital parked abroad by wealthy citizens.
But the measure has faced criticism from people unwilling to let evaders off the hook, Reuters reported.
The Indonesian government said Tuesday it believed the nine-month tax amnesty could bring in 165 trillion rupiah ($12.4 billion) by offering low rates to those coming forward to declare untaxed money.
Many wealthy Indonesians have long chosen to stash billions of dollars abroad, particularly in neighboring Singapore, to avoid tax payments.
Parliament approved the amnesty after months of wrangling, with all but one of the 10 parties in the legislature backing the measure.
People willing to declare their untaxed wealth would be offered a rate of between 2% and 10%, far below the 30% top income tax rate for individuals, Jakarta said.
Finance Minister Bambang Brodjonegoro said he hoped some capital currently parked abroad would “now enter Indonesia’s financial system and boost economic growth.”
President Joko Widodo looks desperate for extra money to fund infrastructure projects as investment falls due to a slowing global economy.
But the bill has faced criticism from the public, with people arguing the legislation means that tax evaders will go unpunished, and that it is unfair to those who have honestly paid their taxes.
Current personal income tax rates in Indonesia range from 5% to as high as 30%, while businesses are taxed at a rate of up to 25%.
Only 27 million of Indonesia’s 250 million population are registered taxpayers and only around a million people file tax reports.

 

Short URL : http://goo.gl/u4sLWL
  1. http://goo.gl/HjrY8A
  • http://goo.gl/Laqnwd
  • http://goo.gl/Rqlmnq
  • http://goo.gl/B41X32
  • http://goo.gl/Cl5VGJ

You can also read ...

ECB President Mario Draghi (L) and US fed chair Jerome Powell at the ECB Forum on Central Banking in Sintra, Portugal, June 20.
The world’s most-powerful central bankers warned that...
Consumer prices rose just 0.1% in May, down from a 0.3% gain in April.
Canada’s economy showed unexpected weakness in the second...
Brazil CB Holds Rate Steady
For the second consecutive time, the Central Bank of Brazil...
China Trade Surplus Shrinks
China’s trade surplus shrank markedly in the first five months...
Inflation rate forecast for the full year is averaged around 3.1%.
Saudi Arabia is so intent on changing its identity that today’...
Productivity in Japan’s manufacturing sector is high  but service sector has declined in recent years.
Japan is famous as a land of robots, but most of those...
Ukraine Shadow Economy Drops to 31% of GDP
Shadow economy in Ukraine dropped by 4% in 2017, to 31% of GDP...
Turkey Sees 22% Yearly Decline in FDI
Turkey attracted some $3.1 billion in net international direct...

Trending

Googleplus