A LOWTAX NETWORK INTERNATIONAL BUSINESS SMART TOOL
HOME ABOUT ONLINE GIG TOOL JURISDICTION INFORMATION PROVIDERS ARTICLES & FEATURES

Indonesia To Ease Tax Penalties

Mary Swire, Tax-News.com, Hong Kong

13 September, 2019

The Indonesian Government has announced that it will relax the penalties it applies to underpaid tax, in a bid to boost compliance.

The changes will affect the interest-based penalty imposed in cases where annual or periodic tax return forms need to be corrected. Rather than charge a fixed penalty rate of two percent per month, a lower rate will be assigned by the Finance Minister. This will be computed by taking that "reference rate" assigned by the minister, adding five percent, and spreading out that annual charge over 12 months.

Interest on underpayments of tax will be the same reference rate plus 10 percent, divided by 12 months.

The financial penalties for taxable employers who fail to issue a tax invoice or to issue the invoice on time will be lowered from two percent of the tax base to one percent.

Companies who fail to register for value-added tax when required will be subject to a one percent penalty of the tax in question.

TAGS: compliance | tax | business | value added tax (VAT) | interest | Indonesia | penalties |

 

 

SHARE

Share on FacebookTwitter
linkedin share buttonstumbleDeliciousEmail

FOLLOW

FacebookTwitterGoogle+LinkedInTechnorati

Important Notice: Wolters Kluwer (BSI) Limited has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.

All rights reserved. © Wolters Kluwer (BSI) Limited