Accommodating Repatriation Funds, The Government Prepares Special State Securities

Monday, 01 November 2021

Accommodating Repatriation Funds, The Government Prepares Special State Securities

JAKARTA. To accommodate repatriated funds in the voluntary disclosure program or tax amnesty volume II, the government will issue special state securities (SBN).

Quoting Bisnis Indonesia, Monday (1/11) edition, the issuance of the special state securities will be regulated in the Minister of Finance Regulation (PMK) which is currently still being prepared by the Fiscal Policy Agency (BKF) of the Ministry of Finance.

However, the government has not elaborated the details of the investment products that will accommodate the disclosure of the taxpayer's assets, such as the tenor or yield offered.

The voluntary disclosure program is one of the provisions regulated in the Law on the Harmonization of Tax Regulations (HPP).

In the regulation, every taxpayer has the opportunity to disclose assets that have not been reported in the Annual Tax Return without worrying about being subject to tax criminal sanctions.

Read: Voluntary Disclosure Program, New Label of Tax Amnesty Volume II

Repatriation Income Tax Rate

The program consists of two categories. The first is for taxpayers participating in the 2016-2017 tax amnesty—both individuals and corporates—who have not had time to disclose their assets from 2015 back.

Second, for individual taxpayers who have not disclosed their 2016-2020 assets.

For repatriation carried out by alumni participating in the tax amnesty, they are required to pay a final income tax of 6% if invested in state securities. Meanwhile, if it is invested outside of state securities, the final income tax rate charged is higher, at 8%.

Meanwhile, the repatriation of assets obtained in 2016-2020 must pay a final income tax of 12% if it is invested in state securities. If the investment is outside state securities, the income tax rate is 14%.

Not Attractive

Quoting, in the 2016-2017 tax amnesty program, the government actually prepared state securities as one of the investment instruments offered to accommodate repatriated funds.

The state securities were originally designed with a three-year tenor and could not be traded. In addition, the government at that time offered a coupon rate that matched the yield on the bond market.

However, according to's records, in the end, the special state securities were canceled because it was deemed ineffective in retaining repatriated funds to remain in the country.

At that time, the government immediately accommodated all repatriated funds in the perception bank for three years. In addition to ensuring that these funds can be locked for three years, it also makes the recording easier because they will not be listed with other funds.


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