by Mary Swire, Tax-Information.com, Hong Kong
06 December 2021
The Indonesian Authorities has detailed its plans for a brand new carbon tax mechanism and a brand new tax amnesty scheme.
The brand new carbon tax is included within the Regulation on Harmonization of Tax Laws (HPP Regulation), which was permitted by parliament in October.
Throughout an preliminary section, Indonesia intends to put a nominal minimal price of carbon tax of INR30 (USD0.2 cents) per kilogram of carbon emitted. Initially, the tax will apply solely to coal-fired energy vegetation. In the meantime, the Authorities will work with the Monetary Companies Authority and the Indonesian Inventory Alternate on the event of a cap and commerce system.
The laws additionally features a tax amnesty scheme and a hike to the value-added tax price to 11 % from April and to 12 % by January 2025.
As well as, the Authorities has confirmed that the tax amnesty scheme, additionally included within the laws, will run from January 1, 2022, to June 30, 2022. Taxpayers regularizing their affairs for the interval 1985 to 2015 can pay a tax price on the disclosed belongings of between 6 and 11 %, whereas the next price of both 12, 14, or 18 % will apply to quantities owing within the interval 2016 to 2020. Concessionary charges will apply to these repatriating belongings and investing them into most popular authorities tasks.