Tax Amnesty Law: An Opportunity for Taxpayers to Clean Up Their Unsettled Tax Obligations
After long discussion since 2015, the Indonesian House of Representatives and the President finally passed the tax amnesty law on 28 June 2016. No official copy of the law has yet been issued by the Government.
It is our understanding that potentially the Government will obtain short term and long term benefits from this law. In the short term, the Government will receive immediate revenue in the form of a Redemption Charge from the taxpayers that participate in the tax amnesty program. In the long term, the Government will receive tax revenue from the additional economic activities related to the repatriated offshore assets.