Only 22% of State-Owned Enterprises' Directors and Commissioners Participated in the Tax Amnesty Program

Of the 2,930 directors and commissioners of state-owned enterprises (SOEs) and their subsidiaries, only 631, or 21.5 percent, have participated in the tax amnesty program. Up to November 2016, only 581 taxpayers (WP) – directors and commissioners of SOEs in the Java region – had participated in the tax amnesty program out of 2,598 WPs required to report their annual tax returns (SPT).

Penalties for taxpayers who do not participate in the tax amnesty program include: if undeclared assets are subsequently discovered by the Directorate General of Taxes, they will be considered income and subject to the normal tax rate. For corporate taxpayers, this is 25 percent, while for individual taxpayers, it ranges from 5 to 30 percent. In addition, a penalty interest of 2 percent per month will be imposed.

The total tax amnesty payments from SOE directors and commissioners up to November 2016 were relatively low, reaching only 155.7 billion rupiah, averaging 147.5 million rupiah for directors and 338.1 million rupiah for commissioners.