Tax Update | January 2022

A Monthly Newsletter Publication of GNV Consulting Services

The Implementation Procedures of

The Voluntary Disclosure Program
for Taxpayers
Import-duty Exemption for Re-import
of Exported Goods

The Implementation Procedures of The Key features in

Voluntary Disclosure Program for Taxpayers this month’s
issue :

On 22 December 2021, the Minister of Finance of the Republic of Indonesia issued MoF Regulation
Regulation No. 196/PMK.03/2021 (“PMK-196/2021”) concerning the Implementation 196/PMK.03/2021
Procedures of the Taxpayer Voluntary Disclosure Program (“VDP”). PMK-196/2021
came into force on 23 December 2021. As stipulated in the Law on Harmonization of
MoF Regulation
Taxation Regulations (UU Harmonisasi Peraturan Perpajakan – “UU HPP”), the VDP will
be effective from 1 January 2022 to 30 June 2022. 175/PMK.04/2021

The VDP is an opportunity provided to Taxpayers to voluntarily disclose undeclared income tax obligations and settle the
obligations through payment of income tax based on disclosure of assets. Highlights of PMK-196/2021 can be divided
into two policies, as follow:
I. Policy I: Taxpayers (Corporate and Individual) – Disclosure of Net Assets Undeclared or Underdeclared in the
2016 Tax Amnesty Statement Letter
1. The eligible Taxpayers are those who participated in the 2016 Tax Amnesty program based on the Law on Tax
Amnesty.
2. The Taxpayers (Corporate and Individual) may disclose additional net assets that were undeclared or
underdeclared in the 2016 Tax Amnesty Statement Letter, provided that the Director General of Tax (“DGT”) has
not found data and/or information regarding the net assets.
3. Net Assets is defined as the value of Assets minus the value of Debt/Liability for the acquisition period from 1
January 1985 to 31 December 2015.

Page 1 of 6
 4. The undeclared/underdeclared Net Assets are considered as additional income and subject to Final
Income Tax with certain rates depending on the condition of the Net Assets, as follows:

Rate Conditions
Invested in:
6% - Renewable Natural Resources or Energy business sector within
Net Assets
Indonesia, and/or Government securities
situated in
Not invested in:
Indonesia
8% - Renewable Natural Resources or Energy business sector within
Indonesia, and/or Government securities
- Repatriated to Indonesia, and
6% - Invested in the Renewable Natural Resources or Energy
business sector in Indonesia, and/or Government Securities
Assets situated
- Repatriated to Indonesia, and
overseas
8% - Not invested in the Renewable Natural Resources or Energy
business sector within Indonesia, and/or Government Securities
11% Not repatriated to Indonesia

Failure to meet the conditions within the specified time will incur additional Income Tax ranging
from 3% up to 6%.
5. The Tax Base varies depending on the type of declared assets based on the condition of assets at
the last Fiscal Year, defined as 31 December 2015 as follows:
a. Nominal value for cash or cash equivalents;
b. Tax Object Selling Value (NJOP) for land and buildings, and Motor Vehicle Selling Value of
(NJKB) for motor vehicles;
c. The value published by PT Aneka Tambang Tbk for gold and silver;
d. The value published by PT Bursa Efek Indonesia for shares and warrants;
e. The value published by PT Penilai Harga Efek Indonesia for Government Securities, bonds
and/or Sukuk securities;
f. In a case where there is no value available, the value of the assets shall be determined based on
the result of appraisal from a Public Appraiser Office.
6. Taxpayers who disclose the net assets are not subject to administrative sanctions under Article 18
paragraph (3) of the Tax Amnesty Law (administrative sanction of increased tax by 200%).

II. Policy II: Individual Taxpayers – Disclosure of Net Assets Not Declared in the Individual Income Tax
Return for FY 2020
1. An Individual Taxpayer can disclose the following Net Assets:
a. Acquired from 1 January 2016 to 31 December 2020;
b. Still in possession as of 31 December 2020;
c. Not reported in the Individual Income Tax Return for Fiscal Year 2020.

Monthly Tax Update | January 2022

Page 2 of 6
2. The criteria of Individual Taxpayer who are eligible to enjoy the Voluntary Disclosure Program are as
follow:
a. Not under a tax audit and/or preliminary investigation for 2016 up to 2020 fiscal year;
b. Not under a tax crime investigation, court process on tax crimes, or serving sentences for tax
crimes.
c. Has a Tax ID Number (NPWP) and pays the Final Income Tax for the disclosure of assets in the
VDP;
d. Has submitted the Individual Income Tax Return for Fiscal Year 2020; and
e. Revokes the application of tax overpayment refund; reduction or abolishment of administrative
sanctions; reduction or cancellation of incorrect tax assessment notice (SKP); Reduction or
cancellation of incorrect tax collection notice (STP); Objection; Correction; Appeal; Lawsuit;
and/or Judicial Review related to 2016 up to 2020 Fiscal Years.
3. The undeclared/underdeclared Net Assets are considered as additional income acquired in the 2020
Fiscal Year and subject to Final Income Tax with certain rates depending on the conditions of the
Net Assets as follows :

Rate Conditions
12% Invested in:
- Renewable Natural Resources or Energy business sector within
Assets situated Indonesia, and/or Government securities
in Indonesia 14% Not invested in:
- Renewable Natural Resources or Energy business sector within
Indonesia, and/or Government securities
12% - Repatriated to of Indonesia, and
- Invested in the Renewable Natural Resources or Energy
business sector within Indonesia, and/or Government securities
Assets situated 14% Net assets overseas, with the conditions:
overseas - Repatriated to Indonesia, and
- Not invested in the Renewable Natural Resources or Energy
business sector within Indonesia, and/or Government securities
18% Not repatriated to Indonesia.

Failure to meet the conditions within the specified time will incur additional Income Tax ranging
from 3% up to 7%
4. The value of unreported assets is determined based on:
a. Nominal value, for cash or cash equivalents;
b. Acquisition cost, for assets other than cash or cash equivalents;
c. In the case that the abovementioned value is unknown, the value of assets shall be determined
at the fair value of similar or equivalent assets based on the Taxpayer’s own valuation.
5. If the Director General of Taxes finds data and/or other information regarding other
undeclared/underdeclared assets, such assets are treated as income of the 2022 Fiscal year and
subject to final income tax of 30% plus administrative sanctions.

Monthly Tax Update | January 2022

Page 3 of 6
Import-duty Exemption for Re-import of Exported Goods

The Minister of Finance issued Regulation No. 175/PMK.04/2021 concerning Import Duty Exemptions for Re-
Import of Exported Goods (“PMK-175/2021”) on 3 December 2021. This MoF Regulation became effective on 4
February 2022.

In brief, PMK-175/2021 provides more details compared to the previous MoF Regulation. Exported goods may
be re-imported with customs duty exemption for the following goods:
1. In the same quality when re-imported;
2. For repair;
3. For further processing/work; or
4. For testing;

provided the following conditions are satisfied:

1. The re-importation is performed by the original exporter;
2. The re-imported goods can be identified as the same goods of that were previously exported;
3. The re-importation is performed within 2 (two) years since the Export Declaration or Proof of Export
date. An extension to that period is available provided that supporting documents such as contract,
agreement, or similar documents are available; and
4. Supporting documents demonstrate that the goods origin is within the Indonesian Customs Territory.

For repaired/processed re-imported goods, the following components do not enjoy the customs duty
exemption:
1. Replaced/added parts;
2. Repair/working cost;
3. Insurance; and
4. Freight/transportation cost.

PMK-175/2021 provides confirmation that the re-importation can be performed through a different customs
office from the customs office of export. A physical inspection by the customs office is normally performed for
the re-imported goods.

Monthly Tax Update | January 2022

Page 4 of 6
International Tax Review
Asia Tax Award 2020
Winner
Indonesia Tax Disputes Firm of the Year

Ahdianto | Partner
Indirect Tax Leader – Highly Regarded
Tax Controversy Leader – Highly Regarded

International Tax Review - Asia Tax Award 2020

Jeklira Tampubolon | Partner
Indirect Tax Leader – Highly Regarded
Women in Tax – Highly Regarded

Finalist
Indonesia Tax Firm of the Year

Finalist
Indonesia Transfer Pricing Firm of the Year

Finalist
Charles Oetomo as Asia Transfer Pricing Practice Leader of the Year

https://www.internationaltaxreview.com/article/b1mxcg1g4hxtlj/asia-tax-awards-2020-the-winners

Monthly Tax Update | January 2022

Page 5 of 6
Contact Information:
Hartiadi Budi Santoso
Partner
M +62 (816) 850 258
E hartiadi.santoso@gnv.id
Ahdianto Rahadianto Sudewo Charles Setia Oetomo
Partner Partner Partner
M +62 (812) 100 445 1 M +62 (815) 991 013 0 M +62 (816) 786 811
E ahdianto@gnv.id E rahadianto.sudewo@gnv.id E charles.oetomo@gnv.id

I.D.M. Agung Nugraha Jeklira Tampubolon Endy Arya Yoga Benjamin P. Simatupang
Partner Partner Partner Partner
M +62 (818) 726 010 M +62 (811) 846 455 M +62 (816) 197 193 0 M +62 (816) 144 248 6
E dewa.nugraha@gnv.id E jeklira.tampubolon@gnv.id E endy.yoga@gnv.id E benjamin.simatupang@gnv.id

Fabian Abi Cakra Julius Wahyu Daryono Aditya Wicaksono Felic Setiawan
Partner Director Director Director – Transfer Pricing
M +62 (813) 103 141 03 M +62 (818) 083 257 81 M +62 (818) 462 644 M +62 (821) 151 112 28
E fabian.cakra@gnv.id E julius.daryono@gnv.id E aditya.wicaksono@gnv.id E felic.setiawan@gnv.id

Irma Batubara Kitamura

Director Advisor – Japanese Desk
M +62 (818) 062 125 48 M +62 (816) 769 217
E Irma.batubara@gnv.id E k.mura@gnv.id

All information in the tax news or alert has been and is prepared in general terms only. The information is intended as a
general guide and shall not be construed as any advice, opinion or recommendation given by GNV Consulting and/or its
personnel (collectively “GNV Consulting”). The information is limited by the time available and by the information made
available to us. You should not consider the information as being comprehensive, as we may not be aware of all facts or
information. Accordingly, GNV Consulting is not in a position to and will not make any representation as to the accuracy,
completeness or sufficiency of the information for your purposes.

The application of the content of the information to specific situations will depend on the particular situations involved.
Professional advice should be sought before the application of the information to any particular circumstances and the
information shall not in any event substitute for such professional advice.

GNVConsulting is an independent member of Moore Stephens International Limited – members in principal cities throughout
the world, providing non-attest services for tax, customs and related trade regulatory issues in Indonesia. Its personnel
comprise individuals with professional certification and licenses as tax and customs consultants and Tax Court attorneys.

© 2022 GNV Consulting Services. All rights reserved

GNV Consulting Services

AIA Central, 23rd Floor
Jl. Jend. Sudirman Kav. 48A
Jakarta Selatan 12930, Indonesia

T +62 (21) 2988 0681

F +62 (21) 2988 0682
www.gnv.id

Monthly Tax Update | January 2022

Page 6 of 6