Omnibus Law Taxation Makes Investment Passion in the Business World
By: Joko Sapto Yudho ) *
The Draft Omnibus Law on Taxation is claimed to have entered the Indonesian Parliament. This shows that its implementation will soon be implemented. As with the other draft, Omnibus Tax Law also contains a number of breakthroughs that will be effective to resolve kesemerawutan rules previously applicable, but less than optimal.
A number of omnibus law bills are now being deliberated, including with regard to taxation. In order to support investment and boost Indonesia’s economic growth, the Government is busy with this. Overall, the articles relating to permits that are considered dominant will be integrated.
One of the omnibus law bills which is considered to be heavily discussed is in the Taxation sector.
Minister of Finance Sri Mulyani Indrawati also stated that the omnibus law in the taxation field only contained about 28 articles divided into 6 clusters.
The first cluster about how to increase investment by reducing the income tax rate (VAT) and Income Tax Agency flowers. The second cluster is the application of the territorial system, namely how foreign income will be tax exempt, provided that it is invested in Indonesia.
The third cluster deals with the subject of the Personal Tax (OP), which regulates the OP of Foreign Citizens (WNA) and Indonesian Citizens (WNI). The fourth cluster, related to how to improve tax compliance, namely rearranging sanctions and interest rewards. The fifth cluster, focus on the digital economy sector, namely taxation of electronic transactions that are made the same as ordinary taxes. This includes the appointment of a digital platform for VAT collection and those who do not have a Permanent Business Entity (BUT) in the archipelago will continue to be taxed. This is mainly as a step to respond to digital companies that do not exist in Indonesia but still get income from Indonesia such as Netflix and Amazon.
And the sixth cluster, is related to tax incentives such as tax holidays, super deduction, Special Economic Zones (KEK), tax allowance, PPh for securities, and do not forget about local tax incentives from local governments.
Previously, the Ministry of Finance claimed to have sent a draft of the tax omnibus law to the House of Representatives (DPR) at the end of January 2020. This was revealed by the Director General of Tax Suryo Utomo when the event was held at the Central Directorate General (DJP) office, South Jakarta.
Suryo said the omnibus law on taxation had implications for increasing investment in order to boost the national economy. He mentioned that in the Omnibus Law, taxation law contained six pillars and 14 policies that would support investment in the country. So that what was conveyed was complete, including the draft and also the academic text, specifically for presidential instruction only as an introduction.
As explained by the Coordinating Ministry ( Kemenko ) for Economic Affairs through his narrative , there are three benefits of implementing the Omnibus Law. Which cover; one, eliminating overlaps between laws and regulations. Second, the efficiency of the process of amending or revoking laws and regulations. Three, can eliminate the sectoral ego contained in various laws and regulations.
The tax omnibus law is suspected to have a number of significant discussions. Especially related to investment licensing. Investment which is staying digadang will help improve welfare through the national economy needs to be revitalized. Meanwhile, the taxation rules for investment are claimed to be so complicated, causing the investment climate to fade, including making investors confused.
If the application of the tax omnibus can be applied immediately, it is quite possible to loosen the speed of the various rules that are considered to be hindering. Which will also be launched omnibus other law. In addition, smooth investment is suspected to be able to absorb labor so as to reduce unemployment which has been very excessive. In other words, this tax Omnibus law will be the forerunner to the regeneration of all applicable rules and regulations.
The enactment of this omnibus law dominant makes the investment climate getting better. The improved investment climate is not merely giving a red carpet to investors. However, there are indeed functions and goals that can support the improvement of the Nusantara economy. With a better economy, it will also improve the welfare of the population. Per capita income rises to alleviate unemployment which was previously a problem that seems difficult to solve. For this reason, we hope that the Omnibus Law Taxation Can Make the Investment Passion of the Business World. Which in turn has an impact on improving the economy of employment and increasing income.
) * The author is an observer of Public policy
