- The World Bank recommends lowering Indonesia’s taxable person (PKP) threshold from IDR 4.8 billion to IDR 500 million.
- It says the current VAT registration threshold is unusually high, disrupts the VAT credit chain, and encourages businesses to split operations to avoid compliance.
- The Bank also advises removing various VAT exemptions to simplify the system, broaden the tax base, and improve compliance.
- Together, these changes could raise additional tax revenue worth about 0.5% of GDP.
Source: news.ddtc.co.id
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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