Sri Mulyani Talks of Alternative Minimum Tax Plan
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13 September 2021 20:04 WIB
TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati said the government would set the criteria of taxpayers to be subject to an alternative minimum tax (AMT). This provision will be included in the Revised Law on General Provisions and Tax Procedures (KUP).
“In order to achieve the desired goal and not be excessive. So this does not mean we do extortion,” said Sri in a meeting with the House of Representatives (DPR)'s Finance Commission on Monday, September 13.
Sri said the AMT would be applied to corporate taxpayers on a limited basis with certain criteria. For example, those who have an affiliate relationship, certain turnover limits, and have been operating commercially for a certain period of time.
The AMT, she underlined, aimed at preventing tax avoidance aggressively committed by companies. For example, companies that report continuous losses or taxes in very small amounts.
In 2019, the number of corporate taxpayers who claimed losses increased to 11 percent from eight percent in 2012. The number of corporate taxpayers who reported losses for five consecutive years also jumped from 5,199 in 2012-2016 to 9496 in 2015-2019.
“[While in fact,] those taxpayers who reported losses for five continuous years keep operating and developing their businesses in Indonesia,” Sri Mulyani revealed.
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