Indonesia clarifies tax measures within the tax reform regulation
by Mary Swire, Tax-Information.com, Hong Kong
December 06, 2021
The Indonesian authorities has detailed its plans for a brand new carbon tax mechanism and tax amnesty regime.
The brand new CO2 tax is included within the Tax Harmonization Act (HPP Act), which was handed by Parliament in October.
In a primary part, Indonesia intends to impose a nominal CO2 tax of INR 30 (0.2 cents) per kilogram of carbon emitted. The tax initially solely applies to coal-fired energy vegetation. Within the meantime, the federal government will work with the Monetary Companies Authority and the Indonesian Inventory Change to develop a cap and commerce system.
The regulation additionally gives for a tax amnesty regulation and a rise within the VAT price to 11 % from April and to 12 % by January 2025.
As well as, the federal government has confirmed that the tax amnesty regulation additionally contained within the regulation will apply from January 1, 2022 to June 30, 2022. Taxpayers settling their affairs for the interval 1985 to 2015 pays a tax price on the disclosed belongings of between 6 and 11 %, whereas the next price of both 12, 14 or 18 % will apply for quantities within the interval 2016 to 2020. Decreased charges apply to these repatriating belongings and investing them in most well-liked authorities tasks.