The Indonesia Stock Exchange (IDX) is optimistic that even more investors will repatriate their assets in the second round of the tax amnesty program, which will start from Oct. 1, despite the higher redemption rate of 3 percent—compared to the 2 percent rate in the first round of the program. (TheJakartaPost.com)
“Previously, the late issuance of finance ministerial regulations [PMK] hampered companies from joining the program. Thus, I believe they will join in the second round and will still be happy with the 3 percent rate,” IDX president director Tito Sulistio said at Hard Rock Hotel, Badung, Bali.
Citing the success of the tax amnesty’s first round, he said he believed the country might reap more than Rp 150 trillion in revenue from penalties at the end of the tax amnesty period. As for small and medium enterprises (SMEs), Tito predicted around 30,000 to 40,000 SMEs would join the program, which will end in March 2017. Currently, the IDX has recruited online marketplace Buka Lapak to hold a campaign to lure SMEs to join the program.
In a bid to ensure SMEs join the program, he called on the government to simplify the tax amnesty application procedure, especially for those whose business and/or sales were online. “I have requested the government not to require wet signatures from online vendors. If they’re only required to submit electronic signatures, I’m sure more SMEs will join the program,” Tito said.