The Director General of Taxes has postponed the implementation of the organization, work procedures, and the start of operation of the Directorate General of Taxes’ (DGT) vertical agencies which are subject to the reorganization to 24 May 2021.

The time change is stated in the Director General of Taxes Decree No. KEP-146/PJ/2021 concerning Amendments to the Director General of Taxes Decree No. KEP-28/PJ/2021 concerning the Implementation of the Organization, Work Procedures, and Start of Operation of the Directorate General of Taxes’ Vertical Agencies as stipulated in the Minister of Finance Regulation No. 184/PMK.01/2020 concerning Amendments to the Minister of Finance Regulation No. 210/PMK.01/2017 concerning the Organization and Work Procedure of the Directorate General of Taxes’ Vertical Agencies (KEP-146/2021).

Formerly, the implementation time and the start of operation of the DGT’s vertical agencies subject to reorganization was set to start on 3 May 2021 as per the Director General of Taxes Decree No. KEP-28/PJ/2021 concerning the Implementation of Organization, Work Procedures, and Start of Operation of the Directorate General of Taxes’ Vertical Agencies as Stipulated in the Minister of Finance Regulation No. 184/PMK.01/2020 concerning Amendments to the Minister of Finance Regulation No. 210/PMK.01/2017 concerning the Organization and Work Procedures of the Directorate General of Taxes’ Vertical Agencies (KEP-28/2021).

The postponement of the implementation and operation constitutes an effort to prevent and break the circuit of the Covid-19 spread which may increase due to the people’s commute during the pandemic. Moreover, employees of the State Civil Apparatus are prohibited from interregional traveling from 6 May 2021 to 17 May 2021. This restriction is in accordance with the provisions under the Minister of Empowerment of State Apparatus and Bureaucratic Reforms Circular No. 08 of 2021 concerning the Restrictions of Interregional Travel and/or Homecoming and/or Leave for State Civil Apparatus Employees during the Corona Virus Disease 2019 (Covid-19) Pandemic.

Changes in the timing of implementation and operation imply that the implementation of duties, functions, and/or organizational structures of the DGT’s new vertical agencies, both at Tax Offices (Kantor Pelayanan Pajak/KPP) and Tax Services, Dissemination, and Consultation Offices (Kantor Pelayanan, Penyuluhan, dan Konsultasi Perpajakan/KP2KP) will begin on 24 May 2021. Changes in duties, functions, and/or organizational structures were formerly stipulated under the Minister of Finance Regulation No. 184/PMK.01/2020 concerning Amendments to the Minister of Finance Regulation No. 210/PMK.01/2017 concerning the Organization and Work Procedures of the Directorate General of Taxes’ Vertical Agencies (MoF Reg. 184/2020).

Further, 24 May 2021 is also stipulated as the start of operation of the DGT’s vertical agencies whose nomenclature, work area, and types of KPP have changed. The Minister of Finance, through MoF Reg. 184/2020, has changed the nomenclature of 1 DGT Regional Office, 11 KPP, and 3 KP2KP. Through MoF Reg. 184/2020, the Minister of Finance has also revised the work areas of 27 KPP and 1 KP2KP and changed 18 Small Tax Offices into Medium Tax Offices. The start of operation for all DGT’s vertical agencies with changes in nomenclature, work areas, and types of KPP was initially set on 3 May 2021.

Changes in the Implementation Time of the Organization, Work Procedures, and the Start of Operation of the DGT’s Vertical Agencies