19 December 2016

BTPN READY TO ACCOMMODATE TAX AMNESTY REDEMPTION FUNDS


As one of the banks designated to receive tax payments, known locally as bank persepsi, BTPN is not only ready to accommodate redemption funds from the tax amnesty program, but is also ready to receive tax payments from all taxpayers across Indonesia.

 

On 1 July, 2016 Indonesian President Joko Widodo ratified Law (UU) No. 11 of 2016 on the Tax Amnesty. There were several factors that triggered the emergence of this Law. First of all, a significant number of assets belonging to Indonesian citizens, both inside and outside the country, had not yet been fully reported in Annual Tax Returns (SPT) for Income Tax (PPh). Secondly, the government wished to boost state revenues from taxes to spur on economic growth. And thirdly, the government also wished to raise public awareness and improve public compliance with respect to tax payment obligations.

 

In the context of this Law, the tax amnesty seeks to waive any taxes owed, while also not imposing any administrative or criminal sanctions for these unpaid taxes, as long as the taxpayers concerned fully disclose all their assets and pay a redemption fee. For taxpayers with assets abroad, this entails transferring these assets back to the territory of the Republic of Indonesia, otherwise known as funds repatriation.

 

The Directorate General of Tax (DGT) devised a schedule whereby the tax amnesty program is divided into three periods. Period I ran from 1 July to 30 September 2016, with redemption rates set at 2% for assets held in the country and 4% for assets held abroad. Period II, which began on 1 October and runs to 31 December 2016, offers redemption rates of 3% (domestic) and 6% (abroad). Meanwhile, period III, from January 1 - March 31, 2017, offers redemption rates of 5% (domestic) and 10% (abroad).

 

In the first period, the DGT managed to acquire earnings from redemption funds to the value of Rp 97,2 trillion. This figure derived from asset declarations worth of Rp 4.500 trillion and fund repatriations worth of Rp 137 trillion. In view of these results, President Joko Widodo claimed that the implementation of the tax amnesty program in Indonesia has been the most successful in the world, outperforming all other countries that have applied a similar policy.

 

Period II of the tax amnesty program also looks likely to be a success. As of mid-December 2016, the total value of redemption funds for this period stood at Rp 96,2 trillion. According to data on the DGT's dashboard, as of Friday (12/16/2016) at 16.30 pm, the value of declared assets was Rp 4.021,6 trillion, composed of domestic declarations amounting to Rp 2.893 trillion and foreign declarations amounting to Rp 989 trillion, as well as repatriated funds to the tune of Rp 141 trillion.

 

PT Bank Tabungan Pensiunan Nasional Tbk (BTPN) is one of the banks designated by the Ministry of Finance to act as a bank persepsi, or a bank that may accommodate redemption funds from the tax amnesty program. With its designation as a bank persepsi, BTPN is not only ready to receive redemption fund payments from tax amnesty program participants, but is also ready to receive tax payments from all taxpayers across Indonesia. Tax payments can be made at all branches of BTPN throughout Indonesia. (*)

 

 


For further information please contact:


PT Bank BTPN Tbk
Andrie Darusman – Daya & Corporate Communications Head
Telp: 021-30026200
Email: andrie.darusman@btpn.com or corporate.communications@btpn.com