PSAK 70 provides accounting guidance for assets and liabilities arising from Indonesia's tax amnesty program. It allows entities to either recognize amnesty-related assets and liabilities based on their nature under existing PSAKs, or at their value on the tax amnesty certificate (SKPP), with any difference recorded in equity. Initially recognized amounts are subsequently measured under existing PSAKs. Assets and liabilities must be presented separately from others initially but can be reclassified based on nature later. Disclosures include the recognition date and amounts on the statement of financial position. PSAK 70 can be applied either retrospectively or prospectively depending on the accounting policy choice.

1. 22 SEPTEMBER 2016
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NEWS
FLASH
Scope
PSAK 70 will be implemented by entities (including
those which using PSAK ETAP), when they recognize
asset/liabilities from performing the Tax Amnesty.
Accounting Treatment
Accounting Policy Choices
Entities have policy choice on initial recognition for
recognizing assets/liabilities arise from performing
the tax amnesty, which are following relevant PSAK
according to nature of its asset/liabilities recognized
(PSAK 70 Par. 06) or following provisions on PSAK
70 which is explained further on PSAK 70 Par. 10 to
23. The decision made by entity must be consistent
for all recognized asset or liabilities on tax amnesty.
Initial Recognition
The initial recognition based on PSAK 70 are
recognized at cost (value stated on Surat Keterangan
Pengampunan Pajak “SKPP”), the difference between
the recognized asset and liabilities due to tax
amnesty recognized as part of additional paid in
capital on equity. Redemption money paid directly is
recognized in profit or loss of the period.
Entity recognize any adjustment to claim balance,
deferred tax assets and tax provision directly in
profit or loss of the period the SKPP submitted.
Subsequent Measurement after Initial Recognition
Measurements after initial recognition of the assets/
liabilities arise from the tax amnesty following
relevant PSAK based on nature of its assets/
liabilities.
Entity allowed but not required to re-measure the
recognized assets/liabilities from tax amnesty based
on SAK at the SKPP date (PSAK 70 Par. 16).
When the entity do such, any difference with
amount at initial recognition recognized on
additional paid in capital as an adjustment.
Presentation & Disclosures
Assets/liabilities arise from the tax amnesty must
be presented separately from the others assets/
liabilities on the statement of financial position,
when the entity decided to use the provision on
PSAK 70 and not following the provision on PSAK 70
Par. 16 and 17. But when the provisions on PSAK 70
Par. 16 & 17 are followed (re-measurement) then it
can be reclassified according to its nature of assets/
liabilities.
Assets and liabilities from tax amnesty cannot
be net-off. Entities have to disclose the date and
amount recognized on the SPPHP.
Transitional Provision
PSAK 70 must be implemented retrospectively in
accordance with PSAK 25, when the entity
choose to use the first accounting policy option
(PSAK 70 Par. 06), or applied prospectively when
choosing to follow second accounting option
(PSAK 70). This accounting treatment will be
implemented starting from the date of the Tax
Amnesty Bill No. 11/2016 in force in 1 July 2016.
So have you decided whether to join tax amnesty
or not, and furthermore which accounting policy
choices that will you choose?
For more information on how BDO can help you
in planning and navigate this major changes,
please contact our technical team at
Godang Parulian Panjaitan, godang@bdo.co.id;
Rizalianmi Tambunan, rtambunan@bdo.co.id
BDO Indonesia
Prudential Tower 16th-18th Floor
Jl. Jenderal Sudirman, Kav. 79
Jakarta 12910, INDONESIA
Tel : +62-21 5795 7300
Fax : +62-21 5795 7301
www.bdo.co.id
Introduction
Referring to BDO News Flash
Publication “What is it and Does it
Matter” on July 2016 that already
gave an explanation about tax
amnesty from tax point of view.
On 20 September 2016, DSAK IAI
had approved PSAK 70: Akuntansi
Aset dan Liabilitas Pengampunan
Pajak. This publication is try to
summarize the provision on that
PSAK 70.
PSAK 70,
HOW TO ACCOUNT
YOUR TAX AMNESTY
When the tax amnesty resulting the entity to hold
a control to other entity, required re-measuring the
assets/liabilities recognized previously at SKPP and
prepare a consolidation. Re-measurement period
(could be done from the date of SKPP until 31
December 2017. Investment of entity in subsidiary
from the date of SKPP until re-measured must be
recorded using cost method (PSAK 70 Par. 17).