Regulation Update
Voluntary Disclosure Program Technical Rules are Released, Here are the Highlights

Thursday, 30 December 2021

Voluntary Disclosure Program Technical Rules are Released, Here are the Highlights
Aturan Teknis Program Pengungkapan Sukarela Dirilis

The government has released the technical rules for the Voluntary Disclosure Program (VDP) through the Minister of Finance Regulation (PMK) Number 196/PMK.03/2021.This regulation clarifies and reinforces the provisions related to the VDP which were previously regulated in Law Number 7 of 2021 on the Harmonization of Tax Regulations (HPP). 

The VDP is the advanced program of tax amnesty that rolled out in 2016-2017. The program will last for six months, from 1 January to 30 June 2022. 

Similar to the previous tax amnesty program, the VDP provides an opportunity for taxpayers to disclose assets that have not been reported in the Annual Income Tax Return, without worrying about fines or sanctions by paying final income tax. 

Even though it is a sequel to the tax amnesty program, the VDP does not only apply to taxpayers participating in the preceding tax amnesty. 

For the tax amnesty volume II program, the government also gives a chance for individual taxpayers (non-corporate taxpayers) to participate. 

However, the policies intended for taxpayers who have participated in the earlier tax amnesty (policy I) and those who have not (policy II) are different. The differences are, for example, regarding the final income tax rate that must be paid and the criteria for taxpayers who may use it. 


Final Income Tax Rate of Policy I

Final Income Tax Rate of Policy II

Foreign Declaration



Repatriation and Domestic Declaration



Repatriation and Domestic Declaration invested on: 

  • Government Securities
  • Renewable Energy
  • Downstream Natural Resources 



Policy I 

Taxpayers participating in the 2016-2017 tax amnesty, both corporate and individual, may disclose the net assets acquired from 1 January 1985-31 December 2015 that have not been or are not disclosed in a Declaration Letter. 
The disclosure is acceptable as long as the assets have not been found during an audit by the Director General of Taxes (DGT). Moreover, taxpayers must pay the final income tax at a predetermined rate from the amount of net assets, i.e. the value of the assets minus the liabilities. 

Policy II 
In this policy, individual taxpayers who are not undergoing a tax case, may disclose net assets owned that are obtained from 1 January 2016-31 December 2020 and have not been reported in the Annual Income Tax Return. 
Tax cases hindering the disclosure include various legal proceedings in the taxation sector such as audits, investigations, trials, or a criminal sentence for a tax crime. 
Certain events may indicate an existence of a tax case, namely if the taxpayer has received a notification of audit, preliminary evidence has been issued, notification of investigation commencement has been submitted to the public prosecutor, or a case has been proceeded to the court. 
To be able to take part in the VDP Policy II, individual taxpayers must submit Tax Returns for FY 2020 and pay the final income tax in the amount determined by the government from the net value of assets. 
The VDP also requires taxpayers to withdraw all kinds of legal efforts submitted related to tax obligations in 2016, 2017, 2018, 2019, and 2020, such as: 

  1.  Tax overpayment refund 
  2. Reduction or removal of administrative sanctions 
  3. Reduction or cancellation of incorrect tax assessment letters (SKP) 
  4. Reduction or cancellation of incorrect tax collection letters (STP) 
  5.  Objection 
  6. Revision 
  7. Appeal 
  8. Lawsuit 

Judicial Review 
In addition to being free from sanctions, the VDP Policy II participants are also free from tax assessment letters issuance by the DGT for their obligations in 2016, 2017, 2018, 2019, and 2020. 

Unless, based on information and data from other parties, the DGT finds out that other assets have not been or not completely disclosed in the VDP. In this case, taxpayers must pay the final income tax of 30% of the assets value plus administrative sanctions in the form of an interest. 
Procedure for Asset Disclosure 

Assets disclosure in the VDP is done by submitting a Notice of Asset Disclosure (SPPH) electronically through the DGT’s website ( 
The application must be completed with several supporting documents such as: 

  •  Transaction Number of State Revenue (NTPN) 
  •  Detail list of the disclosed net assets  
  •  List of debts 
  •  Statement of transfer of assets to Indonesia (Repatriation) 
  •  Statement of investing net assets 
  •  Statement or application letter to revoke applications for legal efforts 

The SPPH can be submitted more than once if there are errors, such as in writing, calculating, or using the final income tax rate. Taxpayers may also resubmit the application if they intend to add other assets. The submission of additional SPPHs is possible throughout the validity period of the VDP. 
Before submitting the additional SPPH, any underpayment of the final income tax arising must be paid. However, if it causes an overpayment, the taxpayers may file for a final income tax refund through a book-entry mechanism. 
Then, the DGT will issue an electronic certificate for the additional SPPH, maximum of 1 day after the submission. The DGT may, however, cancel the certificate if they finds discrepancies in data related to the assets disclosed. 
Before the certificate is completely canceled, the DGT will first clarify to the taxpayer, to which the Taxpayer must respond within 14 working days since the clarification letter issuance. 
Provisions of Repatriation and Reinvestment of Assets 
Similar to the procedure in the tax amnesty program in 2016-2017, apart from declaring assets, taxpayers can also transfer the assets from abroad to Indonesia, known as repatriation. 
The transfer should be make at the latest on 30 September 2022 through a tax payment bank appointed by the government. After the transfer, the assets must not leave Indonesia for five years. 
The taxpayers may not only repatriate the assets into Indonesia but also invest them in instruments prepared by the government. Two investment instruments are available to VDP participants, namely: 

  1. Business activities in the sector of processing Natural Resources or renewable energy in Indonesia, or 
  2. Government Securities (SBN) 

While in Indonesia, the assets may be transferred from one instrument to another, a maximum of two times with a time lag of one year and one time within one calendar year. The time lag will not be taken into account in the repatriation holding period. 
Conversely, taxpayers who fail to repatriate or invest within the stipulated time limit must pay additional final income tax. 
Investment Scheme 
Investment of repatriated assets in the business activities of processing Natural Resources or renewable energy sector in Indonesia can be done through the establishment of a new business or capital participation. 
Meanwhile, investment in government securities can be made through transactions in the primary market or a private placement mechanism through a Main Dealer. 
Investment Realization Report 

All assets transferred and invested in Indonesia must be reported to the DGT every year, along with the submission of the Annual Income Tax Return. 
Final Income Tax Payment Procedure 
The final income tax paid for the disclosure of assets in the VDP can be made through a tax payment bank, tax payment post office, or other tax payment agencies, using a billing code with a tax account code of 411128 and a tax payment code as follows: 

  •  Final income tax on disclosure of net assets acquired in the period of 1 January 1985-31 December 2015 (Policy I): 427 
  •  Final income tax on disclosure of net assets acquired in the period of 1 January 2016-31 December 2020 (Policy II): 428 
  •  Final income tax on disclosure of net assets acquired in the period of 1 January 1985-31 December 2015 (Policy I): 427 
  •  Final income tax on incomplete disclosure of or undisclosed assets from the findings of the DGT (Policy II): 319 

VDP Cancellation 

Taxpayers may revoke the SPPH that has been submitted or cancel the participation in the VDP. These can be done by filling in the assets, debt, and net assets column with IDR0. This way, all final income taxes that have been paid will be returned through a book-entry. 

The cancellation can be made within the period of 1 January to 30 June 2020. However, before actually withdrawing from the VDP, the taxpayers must ensure that no asset is included in the mandatory disclosure criteria. This is because, after the revocation, the taxpayers may no longer change the SPPH. 


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