MSMEs undo participation in tax amnesty

December 03, 2016, 01.30 PM | Reporter: Elisabeth Adventa, Jane Aprilyani, Klaudia Rani

JAKARTA. The Micro, Small and Medium Enterprises (MSMEs) are less enthusiastic to participate tax amnesty program, despite the second phase of the program will expire in one month. The owner of Froz Banana, Fransiscus Ricky admitted that he is completing the requirements for participating in tax amnesty. “We just met with the tax consultant. Subsequently, we will report to tax office,” he said.

Ricky said that the tax amnesty program will have positive impact for the employers. However, they are not used to the complex tax administration process. As information, Froz Banana may book a worth of Rp 350 million turnovers in a year.

The owner of Solo-based Banana Signature Jeremia Mario Christoforus even has not planned to join tax amnesty. He even has not yet registered his business. However, he is now completing the required documents of property tax amnesty before the second period of tax amnesty matures at the end of December 2016.

As of November 2016, Directorate General of Taxation has just recorded the participation of 123,643 MSMEs in tax amnesty. The number has increased from only 75,000 MSMEs participants in the first phase of tax amnesty. During the period, tax authority has collected Rp 245 billion and Rp 3.84 trillion redemption fees from corporate and personal taxpayers of MSME segment, respectively.

Head of Sub Directorate of Public Relations at Directorate General of Taxation Ani Natalia said that the low participation of MSMEs in tax amnesty was caused by the lack of socialization of the program. “There are huge numbers of MSMEs, and they are scared of reporting their taxes,” she said.

Let alone, the redemption fees of tax amnesty during the period I-period III of tax amnesty are flat. Therefore, the MSMEs tend to postpone their participation in tax amnesty.

Referring to the existing regulation, the redemption fees for the segment of MSMEs are 0.5% and 2% for the maximum assets of Rp 10 billion and the total assets of more than Rp 10 billion, respectively.

(Muhammad Farid/Translator)