President Joko Widodo’s administration, which took office in October, is planning to double its infrastructure spending this year to build ports, power plants and other projects, and the tax office figure for lost income would cover more than two-thirds of that spending.Īs a proportion of gross domestic product (GDP), Indonesia, Southeast Asia’s largest economy, has one of the lowest tax takes in the region, trailing behind Malaysia, Singapore, Thailand and the Philippines, according to the World Bank. JAKARTA (Reuters) - Indonesia will crack down on corporate tax avoidance via transfer pricing this year to try and recoup 200 trillion rupiah ($15.6 billion) in lost state income, mainly in the commodities sector, the new head of the tax office told Reuters.
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