Tax

JAKARTA, Oct. Oct (Reuters) - Indonesia's parliament on Thursday approved a government proposal to amend tax rules, with Deputy Speaker Muhaimin Iskander saying he would raise value-added tax rates next year and scrap planned corporate tax cuts. The law introduces a 35% income tax, new carbon tax, and tax waiver program for those earning more than 5 5 billion (35 351,000) a year. But while some business groups and analysts have questioned the timing of the planned tax hike, the economic recovery from the epidemic appears to be still fragile. According to a copy reviewed by Reuters, the law calls for an increase in the VAT rate on sales of almost all goods and services from 10% to 11% and by 2025 to 12%. It also abolished planned corporate tax cuts and introduced higher income ...

The deadline for tax returns for 2020 returns is approaching, but there is still time to avoid additional penalties and fees. Filers have until October 15 to file an extended return, originally on May 17. Those who have applied for an extension can waive the late penalty by sending a refund by October 15. Otherwise, failure to pay the penalty means 5% tax per month, limited to 25%. There are usually no file-to-file penalties for refunds, but taxpayers are likely to lose their money by waiting too long to file. Taxpayers can use online filing options, such as IRS free files, to send returns. In addition, states may have different deadlines for tax extensions, so filers should double check the details through their state tax website. More time to fileAlthough the October 1...

Indonesian parliament approves major tax reform bill

October tax extension deadline fast approaching October tax extension deadline fast approaching