The government is finalising the implementation of the tax amnesty program. In addition to conducting outreach activities to business people in Indonesia and abroad, the government is set to issue technical or derivative regulations of the tax amnesty law which were passed by the House in June.
The Finance Ministry plans to issue three ministerial regulations on tax amnesty this week. Two of them will govern the investment instruments and procedures to accommodate repatriated funds.
“(The regulations) are to do with the repatriation instruments, procedures,” said Finance Minister Bambang Brodjonegoro in Jakarta, Monday (11/7).
The ministry has sought inputs from various stakeholders to finalise the regulations. These include business people, who were represented by the Indonesian Employers’ Association (Apindo), the banking industry, the board of directors of Indonesian Stock Exchange, and tax consultants.
According to the chair of Apindo’s Advisory Council Sofyan Wanandi, most of the inputs have been taken on board by the Finance Minister. “This will help formulate the ministerial regulations, which must be ready this week,” he said.
The deliberation of the ministerial regulation on tax amnesty procedures included discussing the possibility of facilitating the participation of micro, small, and medium businesses in the tax amnesty program.
The application form for all participants will be simplified to a couple of pages in the hope of encouraging more business people to participate in the program, because they will able to apply for tax amnesty themselves, without any assistance from tax consultants.
Meanwhile, the deliberation of the ministerial regulation on investment instruments included discussing flexibility in the use of repatriated funds to drive the economy. However, the funds must be deposited for at least three years in the country.
The Finance Ministry sought input from the banking industry to ensure the flexibility of the financial instruments. “How the stock market and the banking sector are able to use these instruments to drive the economy,” said Sofyan.
The priority business sectors that will get financing from the repatriated funds were also discussed. The chosen business sectors must be able to employ a large number of workers and have a significant impact on the economy.