Tax Briefing Series No. 3
LOKATARU FOUNDATION
GENDER BASED TAXATION
- How are the latest developments in the G20 negotiations on Gender and tax Policy?
OECD Secretary General Report 2022
On 9 February 2022, the OECD Secretary-General delivered a tax report to the G20 Finance Ministers and Central Bank Governors ahead of their 17-18 February meeting under the 2022 Indonesian Presidency. The report provides an update on the ongoing activity on gender based tax policy.
The OECD proposes the establishment of gender-based tax regulations (gender wise) to be included in the series of discussions of the 2022 G20 Indonesia Presidency. This proposed gender tax policy will provide affirmations to women. Although there is no detailed formulation regarding the proposal, the framework discussed will provide a lucrative portion for women who will enter the labor market.
G20 communiqué
The communiqué issued at the conclusion of the G20 Finance Ministers and Central Bank Governors meeting on 17-18 February includes the following paragraph on tax matters: “We acknowledge the OECD/G20 Inclusive Framework on BEPS report on Tax Policy and Gender Equality”.
In OECD Report (2021) on Tax Policy and Gender Equality, the report explores key concept and country approaches to tax policy and gender equality. [1] according to report, countries indicated a number of priorities for future work. The most common preference was for future OECD work to consider the impact of tax credit or tax allowance provisions on gender equity.
- what is the current position and arrangement of Gender Equality and Tax Policy by Indonesia?
Indonesia is part of countries that indicated the importance of seeking to improve gender equality in society outside the tax system via other policy interventions, e.g. by reducing income inequalities or by social expenditure provision.
Indonesia, which noted that gender responsive policies have been integrated into some tax regulations e.g. a married woman can now choose to obtain her own Taxpayer Identification Number, working hours for male and female staff have been adjusted to encourage equitable engagement and increase productivity, women-friendly facilities such as a lactation room, priority parking, have been implemented.
Initial regulation on gender based taxation can be found in Indonesia tax regulation. For example, women has the right to have her own tax payer number (NPWP). However, Indonesia has not develop its own comprehensive regulation on gender based taxation.
- What are the demands and recommendations of global civil society?
Tax and Sustainable Finance Working Group -Civil 20 demands to G20 economies:
- Undertaking systematically gender analysis of tax measures and removing gender biases and gaps. To address the impact of implicit bias in their tax systems is to provide more guidance on taking gender equality into account in tax policy design and tax administration.
- To provide Gender wise tax policy. For instance, to provide tax incentives for women giving birth in the form of doubling non-taxable income (PTKP). This allows the mother to pay less income tax (PPh) after giving birth, or even not to pay taxes if her income is below the new PTKP. Other example is by applying VAT exemption for baby diapers.
[1] https://g20.org/wp-content/uploads/2022/02/Tax-Policy-and-Gender-Equality_OECD-report.pdf
