Bank Indonesia Policy Mix

Regulatory Points of The Bill on Harmonization of Taxation Laws A fair, healthy, effective, and accountable tax system 4. VOLUNTARY DISCLOSURE PROGRAM 1. Providing opportunities for Taxpayers to report or disclose voluntarily their tax obligations that have not been fulfilled through: 1) payment of Income Tax based on the disclosure of assets that were not or have not been fully reported by the participants in the Tax Amnesty program; and 2) payment of Income Tax based on the disclosure of assets that have not been reported in the 2020 Annual Tax Return 2. The program is implemented for 6 months (1 January 2022 to 30 June 2022) 3. Consists of 2 policies: Details Subjects Asset Base Final Rate • Policy | Individual and Corporate Taxpayers Participated in Tax Amnesty Asset as of 31 December 2015 which has not been disclosed in tax amnesty program 11% for declaration 8% for domestic assets and repatriated foreign assets 6% for domestic assets and repatriated foreign assets which is invested in gov. securities/downstream/ renewable energy Source: Ministry of Finance 5. CARBON TAX a. b. C. d. Carbon tax is imposed on the purchase of carbon-containing goods or carbon-emitting activities. The law mandates the establishment of a carbon tax roadmap. The carbon tax rate is set at minimum of IDR 30,000 (USD 2) per tonne CO2 equivalent (CO2e). The first implementation is April 1, 2022, on coal-fired power plants. 6. CHANGES IN LAW ON EXCISE a. Policy II b. Individual Taxpayers C. Assets required in 2016- 2020 which has not been reported in 2020 tax return (SPT) d. • 18% for declaration • 14% for domestic • assets and repatriated foreign assets 12% for for repatriated foreign assets and domestic assets which is invested in gov. securities/downstream/ renewable energy Adding electronic cigarettes as excisable goods for tobacco products. Change the procedure for adding and subtracting types of excisable goods. Enforcement of Excise Criminal Law by prioritizing recovery of state revenue loss. Payers are given the opportunity to return losses to state revenues by paying sanctions: Recovery Loss of State Revenue During preliminary investigation During full investigation Law on Excise Newly Proposed Law Has not been regulated Paying the principal Excise + 4X fine of underpaid excise Paying a fine of 3x of the excise value that should have been paid Paying a fine of 4x of the excise value that should have been paid

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