Intending to reveal assets through VDP? This is How To Calculate The Final Income Tax

JAKARTA. The Voluntary Disclosure Program (VDP) which is considered a Tax Amnesty Volume II policy will take effect immediately on January 1, 2022 - June 31, 2022.

If you have assets acquired before 2020 that have not been reported in the tax return, it can be disclosed through VDP without worrying about being subject to administrative sanctions or fines.

This policy is regulated in Law Number 7 of 2021 on Harmonization of Tax Regulations, which is further explained in the Minister of Finance Regulation (PMK) Number 196/PMK.03/2021.

For information, The VDP consists of two types of policies. The first VDP policy is for individual and corporate taxpayers participating in the tax amnesty volume I (2016-2017) who have not or under-disclosed their net assets until the 2015 fiscal year in a declaration letter.

Meanwhile, the second VDP policy is only intended for individual taxpayers—not corporates—who have not reported 2016-2020 acquired assets in the Tax Return.

To participate in this tax amnesty program, taxpayers must pay final income tax (PPh) at a certain rate, according to the criteria set by the government.

Calculation Method

Based on a written statement submitted by the DGT, related to the issuance of PMK Number 196/PMK.03/2021, the determined final income tax rate is calculated based on the value of the assets to be disclosed.

If the assets to be disclosed are acquired before 31 December 2015, the basis for the calculation is using:

1. Nominal value, for cash assets or cash equivalents.
2. The Sales Value of the Tax Objects (NJOP) for lands/buildings and
3. Motor Vehicle Sales Value (NJKB) for motor vehicles.
4. Values ??published by PT Aneka Tambang Tbk., for gold and silver.
5. Value published by the Indonesia Stock Exchange (IDX) for shares and warrants traded on the PT BEI.
6. Value published by PT Penilai Harga Efek Indonesia for government securities and debt/Sukuk securities issued by the company.
7. If there are no guidelines, use the results of the assessment from the Office of Public Appraisal Service (KJPP).

Meanwhile, if the disclosed assets were acquired between 1 January 2016 - 31 December 2020, the final income tax is calculated based on:

1. Nominal value, for cash or cash equivalents.
2. The acquisition price, for other than cash or cash equivalents.
3. If it is unknown, it can use the fair value as of 31 December 2020 of similar or equivalent assets based on the taxpayer's assessment.

In a written statement, the DGT emphasized that VDP is not just a tax amnesty program. This is because this program is designed to provide an opportunity for taxpayers to disclose unfulfilled tax obligations.