Behold, New Tax Regime from Omnibus Law on Taxation
- The Bill on the Tax Regulations Harmonization – previously known as Revision on General Provisions and Tax Procedures Law – is just one ahead of its legislation. At least 11 key points are mentioned in the bill, including the controversial tax amnesty volume 2.
- D-Insights noted a significant change in Tax Regulations Harmonization Bill. The approved second tax Amnesty has a much lower rate range than the original plan. Meanwhile, the corporate tax is pegged at 22 percent in 2022, higher than the planned rate of 20 percent. Such changes raised an allegation of "swapping" with the second tax amnesty program.
- The Prosperous Justice Party was the only paction that refused the Bill approval, backed with eight reasons for rejection. However, the plenary session will likely pass the bill since most factions have approved.
- The Bill on Tax Rules Harmonization delegates detailed arrangements for several articles to the Minister of Finance. Tax experts analogized this as giving a "blank check" to Finance Minister, who is legally vulnerable. D-Insights noted dozens of delegations to the Minister.