As part of efforts to boost States revenue, the government wants to improve tax revenue by increasing compliance with the obligation to lodge an annual tax report (Surat Pemberitahuan Tahunan – SPT). The Minister of Finance, Bambang Brodjonegoro, recently requested the Directorate General of Tax to produce a relevant policy.
"We need a policy which requires taxpayers to correct their SPT for the past five years," Mr. Bambang said at the parliamentary complex in Jakarta, last Wednesday.
In prior years, the self-assessment policy operated under a sunset policy in 2008. The policy at that time produced positive results with tax revenue increasing by five percent. Unfortunately, however, tax revenue from individual taxpayers is currently very low. During 2014, individual taxpayers only contributed IDR 5 billion of the total tax revenue of IDR 900 billion.
This low figure for revenue came from the fact that of the approximately 25 million registered tax payers, only 10 million delivered SPT on a regular basis. Moreover, of these 10 million tax payers, there are only 900 thousand non-employee taxpayers. Mr. Brodjonegoro has indicated that self-assessment will commence after April, subsequent to the period for SPT lodgement for individual taxpayers.
In terms of increasing tax revenue, lawmakers have called for reform to tax administration and its legal framework. Setya Novanto, Speaker of the House, also has also request that discussions on amendment to Law No. 28 of 2007 on General Provisions and Procedures of Taxation be sped up to enhance government tax income.
As part of efforts to boost States revenue, the government wants to improve tax revenue by increasing compliance with the obligation to lodge an annual tax report (Surat Pemberitahuan Tahunan – SPT). The Minister of Finance, Bambang Brodjonegoro, recently requested the Directorate General of Tax to produce a relevant policy.
"We need a policy which requires taxpayers to correct their SPT for the past five years," Mr. Bambang said at the parliamentary complex in Jakarta, last Wednesday.
In prior years, the self-assessment policy operated under a sunset policy in 2008. The policy at that time produced positive results with tax revenue increasing by five percent. Unfortunately, however, tax revenue from individual taxpayers is currently very low. During 2014, individual taxpayers only contributed IDR 5 billion of the total tax revenue of IDR 900 billion.
This low figure for revenue came from the fact that of the approximately 25 million registered tax payers, only 10 million delivered SPT on a regular basis. Moreover, of these 10 million tax payers, there are only 900 thousand non-employee taxpayers. Mr. Brodjonegoro has indicated that self-assessment will commence after April, subsequent to the period for SPT lodgement for individual taxpayers.
In terms of increasing tax revenue, lawmakers have called for reform to tax administration and its legal framework. Setya Novanto, Speaker of the House, also has also request that discussions on amendment to Law No. 28 of 2007 on General Provisions and Procedures of Taxation be sped up to enhance government tax income.