Thursday, 23 June 2016

Indonesia considers onshore financial centre after tax amnesty

Indonesia is considering forming a special region that will serve as an onshore financial centre in which domestic firms can create shell companies without having to go to tax haven countries, its finance minister said late on Wednesday.

South-East Asia's largest economy is in the early stages of overhauling its tax system. It has announced many plans that the government hopes will get more people to pay taxes and empower the tax authority, including a proposed tax amnesty.

Currently, only 27 million people of the 250 million population are registered taxpayers and around a million people filed tax reports.

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