Tuesday, December 23, 2008

The Sunset Policy will End

The Tax Amnesty provided by the Sunset Policy shall expire eight days from now, 31 December 2008, after that it shall not be extended. This was announced by the Director General of Taxation Darmin Nasution as quoted by Kompas.

With the Sunset Policy, the government will delete the Tax Administrative Sanction i.e Monthly Interest of 2% of the Unpaid or Less Paid Tax. Beside that, a Tax Payer who submits before 31 December 2008 the Correction of Income that has not been reported in the Annual Tax Notification (SPT) until 2007, shall not be inspected by the Directorate General of Tax.
On the contrary, a Tax Payer who do not report its Income, or submit the necessary data in its SPT, shall be fined with twice the amount of the unpaid Tax, or jailed for 3 up to 1 year. Moreover, citizens who has an income higher than the Non Taxable Income should have a Tax Payer Number (NPWP), otherwise after 31-12-08 they have to pay a 20% higher Income Tax.

Considering the above, I have corrected my SPT up to the year 2007 and plan to submit them to the Tax Office tomorrow. I hope that each and everyone of you will do the same.

No comments: