Lower tax redemption tariff or penalty will apply to taxpayers who have yet to report their taxes.

The Tax Amnesty Law was passed on 28 June 2016. This regulation says that a lower tax redemption tariff or penalty will apply to taxpayers who have yet to report their taxes.

There are three categories of tariff: for small and medium businesses, for taxpayers who are willing to repatriate their assets, and for taxpayers who declare but do not repatriate their assets.

A redemption tariff of 2 - 5% applies to taxpayers who are willing to repatriate their assets. For taxpayers who declare but do not repatriate their foreign assets, the penalty is 4 - 10%. For small – medium businesses that declare assets below IDR 10 billion, the tariff is 0.5%; and for assets over IDR 10 billion declared, the tariff is 2%.

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