Indonesian Finance Ministry to change corporate tax rate

The Ministry of Finance of Indonesia has instructed several thousand tax authorities to increase the personal tax rates for income in 2019.

Such a decision is due to the need to optimize the tax burden to a single tax.

According to Indonesian Finance Minister Bambang Brojonegoro, Indonesia has far fewer income tax payers than in developed countries, where income tax is a significant part of the tax base.

At present, tax revenues of individuals make up a tiny fraction of the country's total tax revenues, Bambang Brojonegoro noted.

"In this connection, the ministry seeks to significantly increase the number of taxpayers this year, by increasing the number of tax officials who carry out an audit in cooperation with other law enforcement agencies," the minister said.

Earlier, in November 2018, the Indonesian government wanted to propose a tax amnesty for the next year, 2019. One of the proposed methods to stimulate taxpayers to streamline their tax affairs was precisely the revision of the corporate rate.

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