By: Ahmad Baiquni )*
The taxation law is one part of the Omnibus Law bill. At present the draft bill has been in the hands of the DPR. One positive thing from the taxation law is to improve the national economy.
The Draft Tax Law will not necessarily conflict with regulations in each region. In fact, this taxation Omnibus Law will link the policies of the central and regional governments. These local regulations will be intervened through several procedures from the government.
The Regional Tax Rationalization aims to rearrange the authority of the central government to set regional tax rates nationally. Regional taxes will be regulated through a presidential regulation, after consultation with local governments to regulate the ability of the region to collect original regional taxes in accordance with Central Government policy.
In addition, this Tax Omnibus Law also participates in providing relief for business people. For example, tax penalties also get relief from 25 percent to 22 percent, even given a bonus of up to 17 percent.
According to the Director of the Indonesia Public Institute (IPI) Karyono Wibowo also revealed similar things. The goal of the sanctions relief, according to Karyono, is to provide stimulus for foreign investors to come to Indonesia, while at the same time helping to grow economic growth targets.
This is in line with the plan of Minister of Finance Sri Mulyani who expects this economic growth to reach 6 percent.
He said he was optimistic about this tax bill because it could potentially encourage economic growth from 5.01 percent to 6 percent.
Not only that, with the presence of this regulation, social media platforms such as Google, Netflix, Facebook, Instagram and others will be subject to business income tax.
The Ministry of Finance said, Omnibus Law taxation is a series of government policies that can strengthen the national economy through increasing domestic and foreign investment funding.
Then it can create the development and deepening of financial markets, create legal certainty for tax subjects, guarantee business continuity and encourage voluntary taxpayer compliance.
Furthermore, creating justice in the domestic business climate, and encouraging priority sectors on a national scale by providing facilities, protection and simple and fair regulation.
This taxation Omnibus law will collect tax facilities in one section, including reduction and exemption from income tax (PPh), tax holidays, super deduction for vocational and research and development and for companies that make investments for labor-intensive activities.
In addition, taxpayers who get income from abroad, both in the form of dividends and after-tax income from their business, are not taxed in Indonesia if invested in Indonesia.
For individual taxpayers who live abroad for more than 183 days or approximately 6 months, the income received from abroad will be exempted from income tax in Indonesia, but remains the subject of tax from that country.
Whereas for income received from within the country will be subject to Income Tax Article 26. This also applies to foreigners who get income from within the country, after they stay in Indonesia more than 183 days.
Meanwhile for Indonesian taxpayers who get income from permanent business entities abroad, both from dividends and after-tax income, they will not be taxed again in Indonesia. For foreign taxpayers, if you have a business outside Indonesia also will not be taxed in Indonesia, only income from Indonesia is charged.
The government has also proposed that there are no administrative sanctions that have been in effect from the KUP Bill where violations of tax revenues will be subject to a flat rate of 2% per month. But it will change according to the rates of reference rates in the market.
The tax omnibus law can also make the taxation system transformation more conducive. Mainly, against the challenges of the era, industry 4.0 is full of uncertainty.
The government’s step in drafting the Tax Omnibus Law Bill certainly aims at the joint progress of both micro and macro entrepreneurs.
)* The author is a social political observer