Thursday, 12 December 2019

Tax Office: 50 Percent Tax Noncompliance from the Wealthy

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Laila Afifa

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  • TEMPO.CO, Jakarta - The Directorate General of Taxation records suggest that employees are one of the most tax compliant group compared to other groups with a compliance ratio of 73.6 percent in this year’s first semester. This statistic is a contrast compared to corporations (57.28 percent compliance), and wealthy or non-employees (under 50 percent).

    In total, the total taxpayers’ compliance of this year’s first-semester amount to 67.2 percent. Only 12.3 million people have filed their tax returns from a total of 18.3 million.

    The directorate’s director of extensification and assessment Angin Prayitno Aji says the government has obtained a plethora of data which will be optimized to boost taxpayers’ tax compliance that is still at a minimum.

    “Well, of course, those who do not report will be encouraged to report. We have plenty of data,” said Angin on Wednesday, August 7.

    In order to boost the tax income from the wealthy and non-employee group, the tax authority will maximize the existing regulation meant to encourage businesses and SMEs to be more compliant.

    The tax directorate general received tax returns from 1.3 SMEs in 2019s first semester and is projected to grow to 2 million by the end of the year. “As it turns out, there are still plenty that has yet reported their tax. It’s been reduced but they are still tax-noncompliant,” he said.

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