TAX - JAKARTA. Indonesia is considering introducing an alternative minimum tax in a bid to prevent tax avoidance by companies, Finance Minister Sri Mulyani Indrawati told parliament on Monday, providing more details into her proposals for sweeping tax reforms.
"The tax reforms are designed to create fairness and equality for companies. Especially for those that so far have been able to conduct avoidance. We will conduct an alternative minimum tax approach to secure compliance," she said in a broadcast meeting with parliament's finance commission.
The minister also said she planned to introduce a new band in individual income tax to charge 35% for a portion of income on "high wealth individuals" making more than 5 billion rupiah ($348,432) a year. There will be no change in rates for the majority of tax payers, she said.
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