Preview of Law on Harmonization of Tax Regulations
- October 11, 2021
- Posted by: Administrator
- Category: Tax News
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In early October 2021, the House of Representatives of the Republic of Indonesia ratified the Bill on Harmonization of Tax Regulations (HPP) as a Law. The main points of the Law are as follow:
- Single Identity Number (NIK) will become Tax ID Number (NPWP) for individual taxpayers;
- The imposition of tax on benefits in kind (BIK);
- The minimum tier of taxable income for individual income tax will be IDR 60 million, and individual taxpayers who have income above IDR 5 billion will be charged tax at a rate of 35%;
- The tax rate for Corporate Income Tax will be applied at 22%;
- The VAT rate changes to become 11%;
- Carbon Tax will be imposed for carbon emissions that harm the environment;
- Tax Amnesty.