SOEs vendors targeted to join tax amnesty

JAKARTA. Directorate General of Taxtation is now targeting number of taxpayers who also become business vendors of State-Owned Enterprises (SOEs) to boost tax amnesty revenues.

In order to achieve the target, DGT will call SOEs to invite their counterparts or vendors to join tax amnesty program. Those SOEs will build coordination with Regional offices of Large Taxpayers in socializing this program to their vendors. All of 119 SOEs are already registered in Large Taxpayers regional office, along with their wealthy taxpayers. 

DGT sees the large number of SOEs Indonesia as a potential to increase tax amnesty revenues, since SOEs join with different vendors for various different projects. 

Head of Jakarta Regional Office for Large Taxpayer Mekar Satria Utama said that this cooperation will support taxation authorities to reach more taxpayers. 

Taxation Issues

Some SOEs such as Pertamina and its subsidiary Pertagas, PLN (State Electricity Company), and state-owned banks have confirmed their readiness to support tax amnesty program, by ensuring their vendors have complied their obligation to pay tax. 

Mekar said that Large Tax Office has made two categories of SOEs' vendors. They are individual taxpayers and micro, small, and medium enterprises (SMEs) taxpayers.  

The individual taxpayers are suggested to join the program immediately. However, SMEs have more time to join the program, since the amount of redemption fees for this category is not counted based on asset declaration period. 

In contrary, individual taxpayers or entities with a turnover of above of Rp 4.5 billion should declare their assets immediately in order to avoid larger redemption fees.

Vice President Corporate Communication of PT. Pertamina Wianda Pusponegoro said that the company are ready to support tax authorities in socializing tax amnesty to their vendors. (Translator: Muhammad Farid)