Indonesia: Program for income tax treatment, disclosure of offshore assets

The deadline for making voluntary disclosure of offshore assets is 30 June 2022.

The deadline for making voluntary disclosure of offshore assets is 30 June 2022.

Taxpayers may voluntarily disclose assets that previously were not listed in their income tax returns under a voluntary disclosure program. The deadline for making such disclosures is 30 June 2022.

The value of the disclosed net assets will be considered to be taxable income subject to tax pursuant to certain final tax rates. For purpose of calculating the final income tax due, under the voluntary disclosure program, the value of the income tax liability is limited to 50% of the asset’s value for individual taxpayers and to 75% for corporate taxpayers. Taxpayers can offset the full principal liability value against the asset value.

After the disclosure report is submitted, the Directorate General of Taxation will issue a notification letter that may be amended or canceled if the information about the asset is found to be inaccurate.

A failure to repatriate offshore assets into Indonesia or not investing in certain stipulated sectors will result in the assets’ values being considered as income and subject to final income tax.

Read a February 2022 report [PDF 104 KB] prepared by the KPMG member firm in Indonesia 

 

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