TAX ALERT 10.2021 – VOLUNTARY DISCLOSURE PROGRAM BASED ON HARMONIZATION OF TAX REGULATIONS LAW

The Voluntary Disclosure Program (“VDP”) is one of the provisions stipulated in the Harmonization of Tax Regulation Law which has been promulgated on October 29, 2021. This program is giving Taxpayers the opportunity to disclose tax obligations that have not been voluntarily met through two schemes.

In our Tax Alert no. 10.2021 we elaborate the important provisions that need to be considered regarding the VDP in accordance with Harmonization of Tax Regulation Law No. 7 Year 2021.

Some key points from VDP are as follows:

a. There are two types of VDP:

• Scheme 1 for disclosure of Net Assets obtained by Taxpayers participating in Tax Amnesty from January 1, 1985 to December 31, 2015;
• Scheme 2 for disclosure of Net Assets obtained  by Individual Taxpayers (“WPOP”) from January 1, 2016 to December 31, 2020.

b. The asset disclosed in the VDP is considered as additional income and subject to Final Income Tax.

c. The asset disclosure period, both for VDP Scheme 1 & 2, is between January 1, 2022 to June 30, 2022.

For more information about the Voluntary Disclosure Program, please refer to Harmonization of Tax Regulation Law No. 7 Year 2021 and our Tax Alert No. 10.2021 as attached.

Read more :
SS – 2021 – TAX ALERT 10.2021 – Comparative VDP Scheme 1 & 2
SS – 2021 – TAX ALERT 10.2021 – Komparatif PPS 1 & 2
SS – 2021 – TAX ALERT 10.2021 – Program Pengungkapan Sukarela
SS – 2021 – TAX ALERT 10.2021 – Voluntary Disclosure Program

Attachments :
SS – 2021 – Undang – Undang No. 7 tahun 2021