'Aggressive' Tariff for Super Rich Taxpayers
The expansion of the Individual Income Tax (PPh) bracket is carried out by increasing the tariff for taxpayers with high enough income. In the current regulations, the government only applies four types of personal income tax rates.
The first is 5% for the layer of Taxable Income (PKP) up to IDR 50 million per year. Second 15% for PKP layers above Rp50 million—Rp250 million, third 25% for PKP layers above Rp250 million—Rp500 million, and fourthly the tariff is 30% for PKP layers above Rp500 million. As for the Draft Law (RUU) concerning the Fifth Amendment to Law no. 6/1983 concerning General Provisions and Tax Procedures (KUP), the government plans to divide the fourth layer, in which individual taxpayers with income above IDR 5 billion will be subject to a 35% rate. "This is part of the government's plan to target the public or individual high-wealth taxpayers," said Director of Counseling, Services and Public Relations at the Directorate General of Taxes at the Ministry of Finance, Neilmaldrin Noor, to Bisnis last week. The Directorate General of Taxes noted that the additional bracket with reference to the 35% tariff will contribute to income tax of Rp16 trillion. This figure is equivalent to 19.7% of the total personal income tax collected by the government. However, Neil said that the potential figure that could be explored by the government could change in line with the increase or decrease in the number of targeted taxpayers. "The timing of the implementation of this new tariff and its potential revenue is still under discussion," he explained. According to him, the scheme can further increase the contribution of tax revenue from high net worth individuals in the long term without disrupting the financial structure of the lower middle class.
|•SOURCE•| Articles :BISNIS | Image :ARTHARAYA |
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