Indonesia issues new rules to trace, tax assets

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JAKARTA: Indonesiaissued new regulations aimed at tracing and taxing taxpayers who were not pardoned in the nine-month tax amnesty that ended in March.

Around 972,000 taxpayers joined the amnesty programme and declared assets worth a total of 4.88 quadrillion rupiah (S$495 billion). About 24 per cent of that was held offshore, and only a small percentage of it was pledged to be brought home.

The regulation calls for all assets not reported or were misreported in the amnesty programme - and which were obtained between Jan 1, 1985, and Dec 31, 2015 - to be treated as untaxed income. If they are found before July 1, 2019, they will be subject to a final income tax of 30 per cent for individuals, 25 per cent for companies, and 12.5 per cent for special cases.

Indonesia has already granted tax authorities wider access to information on customer accounts at financial institutions. - REUTERS