Hot Subject 2016 Sept - Tax Amnesty

[macvert]

This is probably a dumb question but say if one flew to Singapore on the 182nd day & then came back to Indonesia the next day, would this be enough to make one exempt from scrutiny?

 

[BAJakarta]

This is probably a dumb question but say if one flew to Singapore on the 182nd day & then came back to Indonesia the next day, would this be enough to make one exempt from scrutiny?

Nope - basically if you reside here you will be tax resident. Even if you claim you don't primarily reside here (but you would have to show another main residence), the 183 day test applies to any 12 month period (rolling). The only potential "out" is if another country (under their rules) considers you tax resident also, and under tax treaty "tie breaker" rules you have closer connection there.....then maybe could have some protection (but even then usually not from income you actually earn while working here).

 

[macvert]

Thanks BAJakarta, I knew that was the case with the 183 day rule in Australia but wasn't sure if Indonesia applied the rule in the same way. Tax residency in Australia becomes quite blurry (for me anyway) because there are so many different scenarios & tests that can be applied to rule a person either in or out of being a resident for tax purposes, even then it can still come down to a court ruling over an individuals circumstances.

 

[Smallworld]

I wonder if USD will really go down so low.

[COLOR=rgba(0, 0, 0, 0.901961)]According to economist Fakhrul Fulvian at the state-owned enterprise, the appreciation may not reach Rp 10,000 to the US dollar like other analysts have predicted, but such a strong appreciation is possible if the amount of repatriated funds reaches more than US$4.7 billion.[/COLOR]

http://www.thejakartapost.com/news/...reciation-likely-but-only-for-short-time.html

 

[fastpitch17]

I wonder if USD will really go down so low.



http://www.thejakartapost.com/news/...reciation-likely-but-only-for-short-time.html

I doubt it will go much below 12,000 and as the article also states, it will be temporary.

 

[fastpitch17]

The program is a bitter pill, but for the good of the country, the government has opted to hold its nose and swallow. Ironic is it not the a high proportion of the rats coming back to refloat the ship of state were and are the government. Without a concerted effort to make real progress at cleaning house, I fear that the amnesty will become an annual event. The return of the old finance minister as the new finance minister is an encouraging sign.

Becoming an annual event would get them very little. Most that is coming back will be this year. After this year the money available will be much less. Once this round is over, then the government should get it's wheels rolling in recovery of misappropriated funds still setting outside the country. Soeharto's family being at the top of the list.

 

[Rainman]

Update.

Was told not only individual is entitle to the Tax Amnesty. Even company can applied for it and declare all your asset and pay 2% Tax based on what u report and thereafter the Tax department would hv no rights to Audit your company regarding whatever transaction you hv before this declared date.

That is rather interesting considering most company do not fully declare their earning and have just too many sleepless night worrying one day the tax man would come knocking.

Checked again and was told even PMA company can applied for the Tax Amnesty which is very interesting. Wish me luck.

 

[pinky321]

I see there's a free consultation for tax amnesty one stop service which provided by Indonesia Stock Exchange, open for public until 20 August 2016
Address:
Indonesia Stock Exchange ( IDX ) Tower 1 , JL. Jendral Sudirman, Senayan , Kebayoran Baru , 12190 Jakarta Selatan , DKI Jakarta

 

[Smallworld]

I wonder if that will happen.

Samuel Sekuritas economist Lana Soelastianingsih believes the rupiah will hover at the range of 10,000 to 12,000 per US dollar thanks to the tax amnesty

http://www.thejakartapost.com/news/2016/08/03/weighing-the-rupiahs-fate-after-tax-amnesty.html

 

[Smallworld]

As of Tuesday morning, Rp 10.9 trillion (US$829.84 million) in assets has been declared from 1,580 taxpayers during its three weeks of implementation, with redemption of Rp231.44 billion induced to tax revenue, or only 0.1 percent of total tax revenues targeted on this program at Rp 165 trillion, according to the latest data from the Taxation Directorate General

Only 0.1 %?

 

[KderNacht]

No. Unless you have a way of staying a rather long time in international territory or a third country. So, 180 in ID, 180 in Singapore and a week in...Bangkok, say. Or go by what do they mean by 'a day'. A British case used this by having the subject sleeping in his private jet before he stayed a full 24 hours in British territory and landing the next morning. Maybe you can replicate this with commercial aircraft.

 

[Banana72]

So in 2018 this will be like an International FBAR which I have to report all my brokerage/stocks accounts, 401K and everything? I wouldn't mind doing it the other way around (like reporting ALL my Indonesian accounts to the US, but I don't feel as secure doing it backwards...).

 

[Smallworld]

So in 2018 this will be like an International FBAR which I have to report all my brokerage/stocks accounts, 401K and everything? I wouldn't mind doing it the other way around (like reporting ALL my Indonesian accounts to the US, but I don't feel as secure doing it backwards...).

For me it feels also strange that a non citizen should report his assets which are in his home country. Eg. if I have working permit in Indonesia and I am working here in Indonesia at the moment why should they ask how much do I have elsewhere. It is not their business what do I have and how did I get it in Europe. As long as I am not Indonesian citizen I don't feel any duty to report anything.

 

[dafluff]

Only 0.1 %?

Ick...those are terrible results so far.

 

[mauricio]

For me it feels also strange that a non citizen should report his assets which are in his home country. Eg. if I have working permit in Indonesia and I am working here in Indonesia at the moment why should they ask how much do I have elsewhere. It is not their business what do I have and how did I get it in Europe. As long as I am not Indonesian citizen I don't feel any duty to report anything.

I think so too. The Indonesian tax amnesty is for Indonesians, especially those who have undeclared assets outside Indonesia. As expats, working in Indonesia, all we need to do is usually done for us by our company including filing & paying our income taxes. If you are married to an Indonesian, just make sure she has no NPWP (tax account number). But only possible if she is not employed or owned a business, i.e. she’s just a housewife.

 

[mauricio]

Update.

Was told not only individual is entitle to the Tax Amnesty. Even company can applied for it and declare all your asset and pay 2% Tax based on what u report and thereafter the Tax department would hv no rights to Audit your company regarding whatever transaction you hv before this declared date.

That is rather interesting considering most company do not fully declare their earning and have just too many sleepless night worrying one day the tax man would come knocking.

Checked again and was told even PMA company can applied for the Tax Amnesty which is very interesting. Wish me luck.

I will be skeptical and cautious… last time there’s “Sunset Policy (a tax amnesty of some sort), a few of my friends got burned (they later lost their shirt, and their pants too). They realized it was “jebakan” (a trap). Anyway, I wish you luck if you decide to get tax amnesty for your PMA company.

 

[Smallworld]

I will be skeptical and cautious… last time there’s “Sunset Policy (a tax amnesty of some sort), a few of my friends got burned (they later lost their shirt, and their pants too). They realized it was “jebakan” (a trap). Anyway, I wish you luck if you decide to get tax amnesty for your PMA company.

I confirm what sul said. I also know few people who got burned on that sunset policy. When I asked them if they will participate in this year tax amnesty they said "never". This is also what I am afraid of... why should some millionaires declare their assets. It is like luring them out and give promises nothing else bad will happen. But the question is: Would you trust your government? Would you trust with how they will spend all that money? What kind of warranties do tax payers have that tax office will not bully all those who declared their wealth?

 

[Smallworld]

Ick...those are terrible results so far.

We can wait and see how end of September will look like.

 

[waarmstrong]

I confirm what sul said. I also know few people who got burned on that sunset policy. When I asked them if they will participate in this year tax amnesty they said "never". This is also what I am afraid of... why should some millionaires declare their assets. It is like luring them out and give promises nothing else bad will happen. But the question is: Would you trust your government? Would you trust with how they will spend all that money? What kind of warranties do tax payers have that tax office will not bully all those who declared their wealth?

Try to keep in mind it is a pack of thieves you are discussing. They are not tax payers, but rather tax evaders. The government's ace in the hole are the pending changes in the international movement and holding of assets which will make it difficult to hide income, ill gotten or otherwise, by spiriting assets out of the country. One way or another, burning is in order.

 

[HappyMan]

Try to keep in mind it is a pack of thieves you are discussing. They are not tax payers, but rather tax evaders. The government's ace in the hole are the pending changes in the international movement and holding of assets which will make it difficult to hide income, ill gotten or otherwise, by spiriting assets out of the country. One way or another, burning is in order.

I can understand one group of "thieves" not wanting to share its money with the other... especially when one of those groups is the DPR.