The Ministry of Finance stipulates a new regulation concerning procedures for the implementation of tax rights and fulfillment of tax obligations as well as the electronic issuance, signing, and delivery of tax decisions or assessments.
The provisions are outlined in the Minister of Finance Regulation No. 63/PMK.03/2021 concerning Procedures for the Implementation of Tax Rights and Fulfillment of Tax Obligations as well as the Electronic Issuance, Signing of Tax Decisions or Assessments (MoF Reg. 63/2021).
MoF Reg. 63/2021 has been released to implement the provisions of Article 6 Number 18 Article 63A paragraph (6) and Article 63B paragraph (5) of Government Regulation no. 9 of 2021 concerning Tax Treatment to Support the Ease of Doing Business (Gov. Reg. 9/2021).
Taking effect as of 8 June 2021, this regulation, among others, states that the Director General of Taxes may issue decisions or assessments in the context of implementing statutory provisions in the field of taxation, in electronic form and signed electronically.
The decision letters that can be issued electronically include: notices of tax correction, objection decision letters, decrees on the reduction or abolition of administrative sanctions, decrees of the reduction or cancellation of tax assessment, interest repayment decrees, decrees of refunds of tax overpayments, and decrees of the calculation of interest repayment.
Notices of tax assessment that can be issued electronically include: notices of tax underpayment assessment, notices of additional tax underpayment assessment, notices of tax overpayment assessment, notices of nil tax assessment, and notices of tax collection.
As outlined in Article 63B paragraph (2) of Gov. Reg. 74/2011 as amended by Gov. Reg. 9/2021, electronically issued assessments and decisions have the same legal force as assessments and decisions published in writing. Next, if the DGT has electronically published the assessment or decision, the DGT will not publish the assessment or decision in print.
The assessments and decisions issued electronically by the DGT will be submitted through three channels, i.e. directly through the DGT website, through other websites or applications integrated with the DGT system, or directly to the e-mail of taxpayers registered with the DGT administration system.
MoF Reg. 63/2021 also stipulates the use of electronic signatures by taxpayers in exercising their rights and fulfilling their tax obligations electronically. The electronic signature under this regulation refers to a signature consisting of electronic information attached to other electronic information used as a means of verification and authentication.
In further detail, two electronic signatures are stipulated in this regulation, i.e. certified and uncertified electronic signatures. A certified electronic signature is an electronic signature made using an electronic certificate.
An electronic certificate refers to an electronic certificate containing an electronic signature and identity indicating the legal subject status of the parties in an electronic transaction issued by the electronic certification operator.
Non-certified electronic signatures, on the other hand, refer to electronic signatures created using the DGT authorization code. The DGT authorization code is a verification and authentication tool used by taxpayers to perform uncertified electronic signatures issued by the DGT.
As for individual taxpayers, electronic documents are signed using an electronic certificate or the DGT authorization code for the individual taxpayer.
If said taxpayer is not an individual taxpayer, electronic documents are signed using an electronic certificate or the DGT authorization code for an individual as the taxpayer’s representative.
Furthermore, in the event that an individual or corporate taxpayer appoints a power of attorney, the taxpayer's power of attorney can sign an electronic document using an electronic certificate or DGT authorization code for the taxpayer's power of attorney.
Furthermore, MoF Reg. 63/2021 states that electronic documents signed electronically have the same legal force as printed (manual) documents that are signed other than using an electronic signature.
On another note, MoF Reg. 63/2021 allows the Minister of Finance to collaborate with government agencies, institutions, associations, and other parties to provide facilities for the electronic implementation of rights and/or fulfillment of tax obligations through an administrative system integrated with the DGT systems.
Cooperation to provide these facilities, among others, is carried out in the context of: granting Tax Identification Numbers; providing confirmation of taxpayer status; administration of electronic withholding tax slips and electronic tax invoices; administration of tax payments and/or filing of electronic tax returns; and administration of tax services.