By: Zulkarnaen )*
One of the steps taken by the government is to boost national and regional economic growth, one of which is through a simplification of regulations in various sectors by drafting the Omnibus Law, one of which is the Omnibus Law Taxation, which is believed to be able to increase purchasing power and the level of public consumption as well as investment value and interest in Indonesia. False Therefore, these government efforts deserve the support of all elements of Indonesian society.
The establishment of the Omnibus Law Act provides clear and fair legal certainty in various fields, including employment, MSMEs, relocation of the capital city and the taxation system. With global economic conditions that are not yet stable or continue to fluctuate, innovations are needed to anticipate various shocks and challenges, including magic moves in the taxation sector.
The Head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia even predicted that the Omnibus Law on Employment and Taxation Laws could grow investments by 0.2 percent to 0.3 percent in the initial stages of enactment, because in the draft two laws it facilitates licensing, so not convoluted.
The Omnibus Law Tax Bill (RUU) is the establishment of a law that changes various provisions by simplifying, revoking or changing some existing laws to target a taxation issue. Thus, all regulations, provisions and taxation facilities will be regulated in one law so that it is right on target and becomes the answer to various complications in the taxation field.
The Minister of Finance of the Republic of Indonesia, Sri Mulyani Indrawati, stated that the omnibus law in the taxation field only contained 28 articles and was divided into 6 clusters. First, increase investment through gradually decreasing the Corporate Income Tax rate. Secondly, taxpayers who earn foreign dividend income will be tax free as long as they reinvest dividends in Indonesia.
Third, the tax omnibus law will also regulate the taxation of individuals who distinguishes foreign citizens (foreigners) and Indonesian citizens (Indonesian citizens). Fourth, improve tax compliance.
Fifth, related to the level playing field similarities between taxes for conventional traders and traders through digital platforms. Sixth, he said that all tax incentives will be combined in one cluster. The tax incentives include tax holidays, tax allowances, super deduction taxes, and so on.
As is known, the draft Omnibus Law on taxation is already in the hands of the DPR-RI. Meanwhile, the Ministry of Finance through the Directorate General of Taxes (DGT) has prepared a roadshow program to explain the tax omnibus law bill to the public, and has even begun to socialize the tax omnibus law bill to the public, including business people or investors both from domestic and abroad such as Europe and Asia. Business actors from abroad are the main target of DGT in socializing a number of fiscal incentives contained in the tax law omnibus bill. This socialization activity is in line with the policy direction of the omnibus law to strengthen the economy through increased investment.
Related to local tax incentives from the local government, Director of P2 Public Relations Directorate General of Tax (DG Tax), Hestu Yoga Saksama revealed, if the Omnibus Law Taxation Bill will regulate the same tax rate or fix rate. This is to synchronize the tax rate between one region and another, and between the center and the regions to support investment. Then, the government will then review local taxes which are considered to hamper investment, because so far there are local taxes that are inconsistent or synchronous between one region and another, or the center with the regions.
This Tax Omnibus Law Bill becomes very important because it aims to improve investment activities, create fairness and equality in business, improve taxpayer compliance and quality of human resources. The presence of the Taxation Omnibus Law is expected to be able to guarantee the certainty of the Indonesian tax system efficiently and effectively. Therefore, the acceleration of the discussion of the draft Tax Omnibus Law, is very important to be supported by all the people of Indonesia. ()
)* Economic Observer