Indonesia Advisory

The Directorate General of Taxation plans to increase the rate of departure tax next year before abolishing the fiscal instrument in 2011.

Director General of Taxation Darmin Nasution said that the government has prepared as draft government regulation regarding the increase in the departure tax rate and the deliberation has reached the ministerial level.

“The draft has been discussed with other related institutions and would be submitted to the State Secretariat soon,”he said, adding that the increase is solely intended to enhance compliance of taxpayers with the obligation to have taxpayer code number (NPWP). Without NPWP, Indonesia residents / traveller must pay fiscal IDR 2,000,000, while FREE for those whose having NPWP.

Commenting on the issue, a member of House’s Commission XI, Andi Rahkmat said that the government is actually unnecessary to increase the tax rate because the policy would be abolished in 2011.

Pursuant to Article 25 of Law Number 36 Year 2008, resident taxpayers planning to depart abroad are exempted from departure tax if the taxpayers have taxpayer code number.