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Government late in explaining income tax facility

July 14, 2009 - 08:45 AM

The government is deemed late in issuing rules affirming the granting of income tax-article 21 borne by the government (DTP) thus affecting the utilization of the facility, Bisnis Indonesia Daily reported on Tuesday.

"The issuance of the circular seems late but it constitutes a positive step and reflects the perseverance of the Directorate General of Taxation so that the facility could be utilized by workers," said Vaudy Starworld, tax practitioner in Tax Consultant Office Vaudy Starworld.

Besides less effective socialization, companies are also afraid of utilizing the facility for their employee on account that many workers would protest because their salary seems reducing in December 2009 and shows no increase in January 2010.

"The condition surely would make companies busy to explain that the government bears income tax-article 21 in 2009, ," said Vaudy, adding that account representatives of the Directorate General of Taxation must come proactively into companies and explain the issue to worker unions.

In addition, the account representatives must also explain that salaries of workers would reduce after the validity period of the facility expires.

Previously, Director General of Taxation Darmin Nasution issued Circular Number 64/PJ/2009 regarding Workers Deserving Government-Borne Income Tax-article 21 and instructed heads of tax service offices to socialize the rule to worker unions, manpower service and worker associations. (*)

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