JAKARTA. The government has granted additional time for taxpayers who have yet to fulfill their asset repatriation commitments under the Tax Amnesty Program and the Voluntary Disclosure Program (PPS). Minister of Finance Purbaya Yudhi Sadewa urged taxpayers with assets held overseas to repatriate and report them before the government tightens enforcement.
"If you have money abroad, bring it back as soon as possible. Otherwise, it won't be allowed. This is not another tax amnesty; we're simply giving taxpayers up to the next six months," Purbaya said during a media briefing in Jakarta.
According to Purbaya, taxpayers have approximately six months, or until the end of 2026, to fulfill their obligations. After that, the government will take follow-up actions against overseas assets that have not been repatriated or properly disclosed in accordance with tax regulations.
He also warned that overseas assets that do not comply with Indonesia's tax rules will not be freely usable for business activities in the country.
Thousands of Taxpayers Still Face Compliance Issues
The government has also identified a significant number of taxpayers participating in the Tax Amnesty Program and the Voluntary Disclosure Program (PPS) who are suspected of failing to meet their commitments.
According to data from the Directorate General of Taxes (DGT), 2,424 taxpayers are suspected of failing to repatriate overseas assets, with the value of such assets reaching IDR23 trillion. In addition, 35,644 taxpayers are suspected of underreporting their assets, with the estimated value reaching IDR383 trillion.
Previously, Director General of Taxes Bimo Wijayanto announced plans to audit PPS participants suspected of failing to fully comply with their obligations.
However, Purbaya acknowledged that the statement had raised concerns within the business community. He emphasized that the government would avoid measures that could undermine taxpayer confidence.
"That will not be pursued. I will instruct the DGT to safeguard the business climate and maintain public trust," Purbaya said.
Nevertheless, he stressed that the government would continue reviewing cases involving taxpayers who failed to repatriate assets or fully disclose their wealth.
"We will examine the findings further. I cannot provide further details at this point," he said.
Under the current rules, PPS participants who fail to fulfill their repatriation commitments may be subject to an additional 5% Final Income Tax if paid voluntarily, or 6.5% if assessed through a Tax Underpayment Assessment Notice (SKPKB). (KEN)
