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Taxpayers: Register or Regret it Later

New Tax Laws will Impose Tax Penalties of Up to 100% on Those Who Fail to Have an Official Tax Registration Number (NPWP).


Bali News:
Click Image to Enlarge

(9/29/2008)

The National News Agency Antara warns that the government is preparing in 2009 to impose tax penalties ranging from 20% to 100% on individuals and corporations found not to have an official tax number (NPWP).

Indonesia's Minister of Finance, Sri Mulyani Indrawati, said that punitive tax penalties for un-registered tax payers is only one of an entire range of measures in new tax rules to be introduced on January 1, 2009. "This is to make the public aware of the need to obtain a tax number by introducing disincentives for those who do not have a NPWP." explained Mulyani.

The absolute need to have an official tax number has been combined with across-the-board reductions in payroll tax rates. After January 1, 2009, payroll (PPh 21) tax subjects found without a NPWP will suffer a 20% penalty for any tax due. Similarly, taxes due on investments, services and income sources (PPh 23) from individuals or companies not holding a NPWP will suffer a 100% tax penalty.

As a further incentive for voluntary tax registration, those holding a NPWP after January 1, 2009 will be allowed to travel abroad without paying the current Rp. 1 million fiscal tax.

Related Article

[Fiscal Tax to End January 1, 2009]


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