The government will include a draft omnibus tax law this week. However, the discussion of the draft Tax Law Provisions and Facilities for Economic Strengthening will only take place in January 2020 after the recess period ends.
Minister of Finance Sri Mulyani Indrawati said, in the tax omnibus there were only 28 articles which were the result of amendments to the seven laws.
Later, there are six important clusters or points that are the focus of the tax omnibus law. Here are the six focuses:
1. Decrease in corporate income tax and tax penalty interest to attract investment
2. Implement a territorial system, in which the income of foreign dividend companies is tax-free as long as they invest in Indonesia.
3. For the subject of personal tax for Indonesians who work abroad more than 183 days can be the subject of foreign tax. Likewise for those who live abroad for more than 183 days in Indonesia, the payment of PPh in the country is only for income from Indonesia. Also read: Government Forms the Omnibus Law Task Force, What Does it Do?
Read too : Knowing Omnibus Law
4. As for increasing tax compliance, the government rearranges sanctions and interest penalties. Previously, the interest of paying the tax was 2 percent for 24 months. While in the omnibus law the fine is as much as the interest prevailing in the market.
5. Applying electronic tax is made the same as an ordinary taxation system. Taxes for overseas digital companies that do not have permanent business entities in Indonesia. The government also appoints digital companies to collect taxes from users of its services.
6. Including all tax incentives in one cluster, i.e. tax holidays, tax allowances, Special Economic Zones, etc.
Source : https://www.kompas.com/