Within 81 days of implementing the Tax Amnesty Volume II program, the net assets of all participants in the voluntary disclosure program or PPS reached IDR 36.7 trillion.
The Directorate General of Taxes at the Ministry of Finance noted that as of Tuesday (22/3/2022), 26,197 taxpayers had registered for the PPS program. Published 29,730 certificates from all participants, since PPS was opened on January 1, 2022.
“The net worth [of PPS participants as of March 22, 2022] is IDR 36.7 trillion,” quoted from the official website of the Directorate General of Taxes on Tuesday (22/3/2022).
Based on the net worth, the average assets reported by each participant ranged from Rp. 1.4 billion, but the value of these assets will certainly vary from each taxpayer. The government does not set a limit on the value of assets in the PPS, so the value of the assets of the participants will vary.
The total assets of PPS participants consist of Rp. 31.87 trillion domestic declarations and repatriations, as well as Rp. 2.46 trillion foreign declarations. Then, there is Rp. 2.36 trillion invested by participants.
PPS participants have the option to place their investment in state securities (SBN) or directly to companies engaged in the downstream sector of natural resources or new and renewable energy (EBT).
Meanwhile, the income tax (PPh) for 81 days of PPS reached Rp. 3.77 trillion. This amount covers 10.29 percent of the total net assets of all participants in the ‘tax amnesty volume II’.
For information, tax amnesty or tax amnesty is the abolition of taxes that should be owed. Here, people who have not paid their taxes are not subject to tax administration sanctions and criminal sanctions in the field of taxation.
Furthermore, with the tax amnesty, there is a potential for increased revenues in the Indonesian State Budget, either this year or the following years. This will make the state budget more sustainable.
The state budget is more sustainable and the government’s ability to spend is also getting bigger, so this will automatically help development programs not only for infrastructure but also for improving people’s welfare.
Therefore, the existence of a tax amnesty this year and beyond will greatly assist the government’s efforts to improve economic conditions, develop and reduce unemployment, reduce poverty and improve inequality.
