Director General of Taxes Confirms Issues on Inheritance Tax
JAKARTA, NNC – Director General of Taxes of the Ministry of Finance Robert Pakpahan discloses the rules of reporting financial account of undivided inheritance of a deceased person is a derivative of Indonesia’s participation in Automatic Exchange Of Information (AEoI).
According to him, the existence of this rule does not mean the state can make tax withdrawal.
“Accounts owned by Indonesians who have passed away are not required to be reported as long as the bank has received the death certificate from the heirs, which is consistent with the common reporting standard for implementing AEoI,” Robert said in Jakarta, Tuesday (3/6/2018).
Robert added this applies also to obliging the amount of inheritence that must be reported.
The minimum inheritance is worth IDR1 billion. He asserted, these inheritance should only be reported, not to be deposited.
“For example, someone had an account of IDR1 billion and died and the amount that is divided into his heirs will not be taxable. If the amount is more than IDR1 billion and is not yet shared, then it should be reported, not deposited,” he explained.