National Economic Recovery Program Update
TAX REFORM WILL RAISE TAX RATIO AND MAINTAIN FISCAL SUSTAINABILITY
Tax reform will improve tax collection; anticipate social, economic, and demographic dynamics and implement best practices
Tax
Administration
Reform
Tax Policy
Reform
Tax Reform Details
Progress Update on Tax Reform
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Healthy and Fair
Taxation System
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Voluntary Disclosure Program (Jan-June 2022)
247,918 IDR61.01T
IDR594.82T
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Taxpayers
Tax Collected
Total Net Assets
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308,059 IDR512.57T
Report
IDR59.91T IDR22.34T
Domestic Declaration Declaration from
Investment
and Repatriation
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overseas
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.
GENERAL PROVISIONS
AND PROCEDURES
•
Integration of the ID Number
with the Taxpayer Number,
Appointment of third parties as
withholding, collecting,
depositing and/or reporting tax
(including e-commerce)
CARBON TAX
Introduction of the carbon tax in
2022 in steps according to a
roadmap taking into account the
development of a carbon market,
achievement of NDC targets, sector
readiness, and economic
conditions.
Source: Ministry of Finance
INCOME TAX
•
•
New bracket for income >IDR 5
billion at 35% tax rate,
Corporate Income Tax in 2022
remains at 22%,
Income Tax rate at 0.5% for
MSME (threshold IDR 500million),
Employee fringe benefits become
tax object.
EXCISE
Strengthening the mechanism
for determining excisable
goods; and applying criminal
sanctions as a last resort in
excise crime.
VALUE ADDED TAX
VAT rate hike from 10% to
11% from 1 April 2022, and to
12% by 2025,
Reducing the VAT
exemptions and facilities.
VOLUNTARY DISCLOSURE
PROGRAM
Improve taxpayers' compliance
through voluntary disclosure
program for unreported tax
obligations at a final income tax
rate.
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2
Tax on digital economy
VAT on
Ecommerce
(2020-2022)
Tax on Fintech
- P2P Lending
Starting May 2022
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IDR10.11 T
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IDR210.04B
Total
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Tax on Crypto
T
Starting May 2022
IDR246.45B
Total
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3
VAT Rate Hike (Starting April 2022)
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(IDR Trillion)
Total IDR 60.76 T
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9.77
6.25
5.74
7.28
7.15
7.62
6.87
7.57
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T
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1.96
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April May June July Aug Sept
Oct
Nov Dec
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