MRB Finance

TAX AMNESTY PHASE III 2025

The government has once again surprised the public recently, with two controversial economic policies set to take effect in 2025.

First, the implementation of the Tax Amnesty Phase III program, which has been included in the 2025 National Legislative Priority Program (Prolegnas Prioritas 2025).

Second, the increase in Value-Added Tax (VAT) from 11% to 12%, which will take effect on January 1, 2025.

These policies have sparked mixed reactions from various groups, including business owners, economists, and the general public. Many are questioning their effectiveness and potential impact on national economic growth.

Debates Surrounding Tax Amnesty Phase III/Pros and Cons of Tax Amnesty Phase III

The introduction of Tax Amnesty Phase III has triggered diverse responses. Critics argue that this policy reflects the government’s reactive approach to fiscal challenges caused by economic slowdown.

In principle, tax amnesty programs are not meant to be repeated periodically. Reintroducing them could undermine their effectiveness and credibility, as the public may perceive them as recurring leniencies rather than a firm, well-planned solution.

The main goal of Tax Amnesty Phase III is to increase state revenue by uncovering hidden assets, both offshore and undeclared domestic wealth. The government remains optimistic that there is still significant untapped potential among taxpayers who have yet to be fully transparent.

However, after two previous tax amnesty programs, how much “hidden treasure” is actually left to uncover? The remaining potential is likely far smaller than before, making it crucial for the government to set realistic targets to maintain the program’s credibility.

However, after two previous tax amnesty programs, how much “hidden treasure” is actually left to uncover? The remaining potential is likely far smaller than before, making it crucial for the government to set realistic targets to maintain the program’s credibility.

One of the most controversial aspects of tax amnesty is the “forgiveness” it offers. Many argue that it is unfair to compliant taxpayers who have consistently fulfilled their obligations. If tax amnesty becomes a recurring policy, it could create a moral hazard, where taxpayers deliberately delay compliance, anticipating another round of amnesty in the future. This poses a serious risk to tax discipline and trust in the taxation system.

Interestingly, Tax Amnesty Phase III is expected to primarily target taxpayers who participated in the first tax amnesty program rather than new tax evaders who have consistently refused to comply. The draft bill for Tax Amnesty Phase III proposes strict sanctions for persistent tax evaders while reviewing the discounted tax rates to ensure that those benefiting from the program fully meet their tax obligations.

 

Would you be interested in participating in this Tax Amnesty Program?

PROSEDUR PENUTUPAN PT

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