Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
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
J
Healthy and Fair
Taxation System
1
Voluntary Disclosure Program (Jan-June 2022)
J
I
J
247,918
Taxpayers
IDR61.01T
IDR594.82T
Tax Collected
Total Net Assets
I
308,059 IDR512.57T
Report Domestic Declaration Declaration from
and Repatriation
overseas
IDR59.91T IDR22.34T
J
Investment
|
I
.
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
2
Tax on digital economy (up to Dec 14th)
J
I
•
• VAT rate hike from
VAT on
Ecommerce
IDR9.66 T
.
10% to 11% from 1
April 2022, and to 12%
by 2025,
Reducing the VAT
exemptions and
facilities.
VOLUNTARY
Tax on Fintech - IDR121.65B
IDR88.15B
I
P2P Lending
Starting May 2022
Domestic
Taxpayer
Foreign
Taxpayer
|
Tax on Crypto IDR110.44B
Starting May 2022
Income Tax
IDR121.31B
VAT
|
J
DISCLOSURE PROGRAM
|
•
Improve taxpayers'
3
VAT Rate Hike (Starting April 2022)
(IDR Trillion)
1.96
5.74 6.25
7.15 7.28 6.87
7.62 7.57
2.57
compliance through
voluntary disclosure
program for unreported
tax obligations at a
final income tax rate.
April
May
June
July
Aug
Sept
Oct
Nov
14-Dec
100
87View entire presentation