Govt. Encouraging Micro-, Small- and Medium-Scale Enterprises to Participate in the Tax-Amnesty Program?s Second Phase

Indonesian Version

 
Marcell Sihombing, Fitri N. Heriani
 

 

As the tax-amnesty program enters its second phase, the Directorate General of Tax (Directorate General) is continuing to disseminate information relating to program among various sections of the population, specifically the countries micro-, small- and medium-scale enterprises (UMKM). Indeed, the Directorate General has decided to positively encourage UMKMs to make use of their right to exploit the tax amnesty during the implementation of this second phase of the tax-amnesty program.
 
With this goal in mind, the Directorate General has recently been undertaking a number of measures in order to persuade Indonesia’s UMKMs to participate in the tax amnesty, including simplifying the official form-filing process and being more proactive as regards the dissemination of tax-amnesty information throughout Jakarta’s various trading centers. The Directorate General has also been cooperating with Jakarta’s Provincial Government in order to carry out this dissemination process while the tax-amnesty momentum is still high. The result of this cooperation could be seen on 14 November 2016, when the official launch of this attempt to disseminate the tax-amnesty program among UMKMs domiciled within the Special Capital Region of Jakarta got underway at Jakarta City Hall.
 
Commenting on this matter, Suryo Utomo, a tax-compliance expert at the Ministry of Finance, asserted that the majority of UMKMs still do not fully understand the tax-amnesty program, which in turn means that they make little contribution to the country’s development through the taxation sector.
 
As a result of this, Mr. Utomo is emphasizing that it is necessary to educate UMKMs properly with regard to the issue of taxation. Utomo is also seeking to remind the public that participation in the tax-amnesty program does not necessarily mean that UMKMs have been involved in any tax-violation activities. Mr. Utomo explained that it was common within the taxation sector for taxpayers to forget to pay their tax arrears or to not even be aware that they may have possible tax arrears, and to indeed ultimately to know very little as regards the whole issue of taxation. Through improved tax education it is hoped that all UMKMs will be able to utilize the tax-amnesty program, even those which are not in possession of taxpayer identification numbers (NPWP).
 
“The purpose [of this policy] is to turn all UMKMs into more formal taxpayers, and ultimately to help them to access loans for the purpose of developing their business operations. After all, possession of a valid NPWP is one of the requirements that must be satisfied by any UMKM which is looking to secure a loan,” Mr. Utomo asserted.
 
Hestu Yoga Saksama, the Director of Public Dissemination, Servicing and Relations at the Directorate General recently revealed that during the period leading up to November 2016, some 55,000 taxpayers participated in the tax-amnesty program, with 70% of these participants (or approximately 40,000 taxpayers) consisting of UMKMs.
 
Director Saksama also emphatically rebutted the claim that public enthusiasm as regards participation in the second phase of the tax-amnesty program had dwindled, as the total number of participants in the program over the first two months of its second phase has been higher than it was during the first two months of the program’s first phase, during which time only 12,000 taxpayers signed up.
 
Nevertheless, Director Saksama admitted that plenty of UMKMs has still not become participants in the program. However, the director remains hopeful that the number of UMKM tax-amnesty participants will increase by the end of the second phase in December, as was the case towards the end of the first phase of the tax amnesty. Indeed, according to Director Saksama, there has been an increase in the number of applications which are being filed at the tax office, with many of these specifically aiming to participate in the current tax amnesty.
 
“Many UMKMs which are domiciled in Jakarta have decided to participate, [although] I don’t know the exact numbers,” Director Saksama added.
 
Summing up, Director Saksama expressed his belief that the general public now understands the basics of the tax-amnesty program. However, Indonesia’s UMKMs are apparently still experiencing difficulties as regards the filling out of forms relating to Asset Statement Letters (SPH). Therefore, there will be a follow-up dissemination process which will specifically address this matter. This second dissemination process will be undertaken in collaboration with regional-level governments, as well as with the relevant stakeholders. Additionally, a number of tax learning centers will be established in various shopping centers located across Jakarta.
 
(cd/sp)