a.

that Indonesia as a G20 member state needs to adapt to international developments in the field of taxation in respect of the application of the minimum standards in action plan Number 14 of the OECD/G20 Base Erosion and Pro it Shifting (BEPS) project concerning more effective prevention and resolution of international tax disputes;

b.

that to prevent and handle international tax disputes more effectively, it is necessary to stipulate a regulation that provides more legal certainty, specifically, in respect of procedures, timeframes and follow-up to requests for the implementation of mutual agreement procedure;

c.

that the provisions on procedures for the implementation of mutual agreement procedure have been stipulated under the Minister of Finance Regulation Number 240/PMK.03/2014 concerning Procedures for the Implementation of Mutual Agreement Procedure but have not fully complied with the minimum standards in the action plan Number 14 of the OECD/G20 BEPS project and have not been able to provide legal certainty, specifically, in respect of procedures, timeframes and follow-up to requests for the implementation of mutual agreement procedures;

d.

that based on the considerations referred to in letter a, letter b and letter c as well as to implement the provisions under Article 59 of Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations, it is necessary to enact a Minister of Finance Regulation concerning Procedures for the Implementation of Mutual Agreement Procedure;

 

 

 

 

 

1.

Law Number 6 of 1983 concerning General Provisions and Tax Procedures (State Gazette of the Republic of Indonesia of 1983 Number 49, Supplement to the State Gazette of the Republic of Indonesia Number 3262) as amended several times, last amended by Law Number 16 of 2009 concerning the Stipulation of Government Regulation in Lieu of Law Number 5 of 2008 concerning the Fourth Amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures into a Law (State Gazette of the Republic of Indonesia of 2009 Number 62, Supplement to the State Gazette of the Republic of Indonesia Number 4999);

2.

Law Number 7 of 1983 concerning Income Taxes (State Gazette of the Republic of Indonesia of 1983 Number 50, Supplement to the State Gazette of the Republic of Indonesia Number 3263) as amended several times, last amended by Law Number 36 of 2008 concerning the Fourth Amendment to Law Number 7 of 1983 concerning Income Taxes (State Gazette of the Republic of Indonesia of 2008 Number 133, Supplement to the State Gazette of the Republic of Indonesia Number 4893);

3.

Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations (State Gazette of the Republic of Indonesia of 2011 Number 162, Supplement to the State Gazette of the Republic of Indonesia Number 5268);

 

 

 

 

 

MINISTER OF FINANCE REGULATION CONCERNING PROCEDURES FOR THE IMPLEMENTATION OF MUTUAL AGREEMENT PROCEDURE.

 

 

 

 

 

 

Referred to herein this Ministerial Regulation:

1.

General Provisions and Tax Procedures Law, hereinafter referred to as the KUP Law, is Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 16 of 2009 concerning the Stipulation of Government Regulation in Lieu of Law Number 5 of 2008 concerning the Fourth Amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures into a Law.

2.

Tax Treaty, hereinafter abbreviated to P3B, is an agreement between the Government of Indonesia and the government of a tax treaty partner to prevent double taxation and tax evasion.

3.

Tax Treaty Partner, hereinafter referred to as P3B Partner, is a country or jurisdiction that is bound to the Government of Indonesia in a Tax Treaty.

4.

Tax Authorities of a Tax Treaty Partner, hereinafter referred to as the Tax Authorities of the Tax Treaty Partner, are the tax authorities of a treaty partner or the tax authorities of a tax treaty partner authorised to implement provisions under a Tax Treaty.

5.

Mutual Agreement Procedure, hereinafter abbreviated to MAP, is an administrative procedure regulated in a Tax Treaty to resolve issues arising in the application of the Tax Treaty.

6.

Competent Authority in connection with the implementation of MAP, hereinafter referred to as the Competent Authority, is an official in Indonesia or an official in the Tax Treaty Partner authorised to implement MAP as regulated in the Tax Treaty.

7.

Mutual Agreement is the results agreed upon in the implementation of a Tax Treaty by the Competent Authority of the Government of Indonesia and the Competent Authority of the Tax Treaty Partner government in respect of the implemented MAP.

8.

Transfer Pricing is the determination of prices in an independent transaction influenced by a special relationship.

9.

Indonesian Citizen requesting the implementation of MAP, hereinafter abbreviated to WNI, is an Indonesian Citizen pursuant to statutory provisions in the field of citizenship, who constitutes a resident taxpayer of a Tax Treaty Partner.

10.

Applicant is a resident Taxpayer and Indonesian Citizen.

 

 

 

 

 

 

(1)

Resident Taxpayers may request the implementation of MAP to the Director General of Taxes as the Competent Authority of Indonesia in the event of a tax treatment by the Tax Authorities of the Tax Treaty Partner that does not comply with the provisions under the Tax Treaty.

(2)

The tax treatment by Tax Authorities of the Tax Treaty Partner that does not comply with the provisions under the Tax Treaty referred to in paragraph (1) consists of:

 

a.

the imposition of taxes by the Tax Authorities of the Tax Treaty Partner resulting in double taxation due to:

 

 

1)

Transfer Pricing corrections;

 

 

2)

corrections related to the existence and/or pro its of a permanent establishment; and/or

 

 

3)

corrections to other income tax objects;

 

b.

the imposition of taxes, including withholding tax or collection in the Tax Treaty Partner that does not comply with the provisions stipulated in the Tax Treaty;

 

c.

the determination of the status as a tax resident by the Tax Authorities of the Tax Treaty Partner;

 

d.

discriminatory tax treatment in the Tax Treaty Partner; and/or

 

e.

interpretation of the provisions of the Tax Treaty.

(3)

In addition to the request for the implementation of MAP by the resident Taxpayers referred to in paragraph (1), the request for the implementation of MAP may also be submitted by:

 

a.

an Indonesian Citizen through the Director General of Taxes;

 

b.

the Director General of Taxes; or

 

c.

the Tax Authorities of the Tax Treaty Partner through the Competent Authority of the Tax Treaty Partner pursuant to the provisions under the Tax Treaty.

(4)

The request for the implementation of MAP referred to in paragraph (3) subparagraph a is submitted for all forms of discriminatory treatment in the Tax Treaty Partner that contradict the provisions on non-discrimination stipulated under the Tax Treaty.

(5)

The request for the implementation of MAP by the Director General of Taxes referred to in paragraph (3) subparagraph b may be submitted in the context of:

 

a.

avoiding double taxation due to Transfer Pricing corrections that have been carried out by the Director General of Taxes by proposing corresponding adjustments to the amount of taxable income for the resident taxpayer of the Tax Treaty Partner;

 

b.

following up on the application for advance pricing agreement (APA) submitted by the resident Taxpayer, including its application for the tax year before the advance pricing agreement period pursuant to statutory provisions on procedures for the establishment and implementation of Advance Pricing Agreement (APA); and/or

 

c.

interpreting the provisions of the Tax Treaty.

(6)

The request for the implementation of MAP referred to in paragraph (3) subparagraph b and subparagraph c may be submitted simultaneously with the resident Taxpayer’s application for:

 

a.

an objection as referred to in Article 25 of the General Provisions and Tax Procedures Law;

 

b.

an application for an appeal as referred to in Article 27 of the General Provisions and Tax Procedures Law; or

 

c.

the relief or cancellation of an incorrect notice of tax assessment as referred to in Article 36 paragraph (1) subparagraph b of the General Provisions and Tax Procedures Law.

(7)

If the request for the implementation of MAP is submitted simultaneously with the application referred to in paragraph (6), the materials for which the request for the implementation of MAP is submitted must be included in the matter in dispute for which the said application is submitted.

(8)

The request for the implementation of MAP referred to in paragraph (1) and paragraph (3) does not defer:

 

a.

the obligation to pay tax payable; and

 

b.

the implementation of tax collection, pursuant to statutory provisions in the field of taxation.

 

 

 

 

 

(1)

The request for the implementation of MAP submitted by an Applicant, must ful il the following requirements:

 

a.

submitted in writing in the Indonesian language;

 

b.

outlining the non-conformity of the application of the provisions of the Tax Treaty according to the Applicant;

 

c.

submitted within the time limit stipulated under the Tax Treaty or no later than 3 (three) years if not regulated in the Tax Treaty, starting from:

 

 

1)

the date of the notice of tax assessment;

 

 

2)

the date of income tax payment, withholding or collection receipt; or

 

 

3)

when the tax treatment that does not comply with the provisions of the Tax Treaty occurs.

 

d.

signed by the Applicant or representatives referred to in Article 32 paragraph (1) of the General Provisions and Tax Procedures Law; and

 

e.

attached with:

 

 

1)

the certificate of domicile or other documents containing the identity of the resident taxpayer of the Tax Treaty Partner related to the request for the implementation of MAP referred to in Article 2 paragraph (2) subparagraph a and subparagraph b;

 

 

2)

a list of information and/or evidence or details held by the Applicant indicating that the tax treatment by the Tax Authorities of the Tax Treaty Partner does not comply with the provisions of the Tax Treaty referred to in Article 2 paragraph (2) and paragraph (4); and

 

 

3)

a statement letter stating the Applicant’s willingness to convey the information referred to in number 2) completely and timely.

(2)

The request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b and subparagraph c is submitted within the time limit stipulated under the Tax Treaty.

(3)

The request for the implementation of MAP referred to in paragraph (1) and Article 2 paragraph (3) subparagraph c is submitted to the Director General of Taxes through:

 

a.

the Head of the Tax Of ice where the resident Taxpayer is registered; or

 

b.

the Director of International Taxation, if the request for the implementation of MAP is submitted by:

 

 

1)

an Indonesian Citizen; or

 

 

2)

the Competent Authority of the Tax Treaty Partner.

(4)

The request for the implementation of MAP referred to in paragraph (1) is submitted:

 

a.

in person;

 

b.

by post with proof of postage; or

 

c.

using other methods through:

 

 

1)

a shipping company or courier services with proof of postage; or

 

 

2)

certain channels determined by the Director General of Taxes according to developments in information technology.

(5)

The request for the implementation of MAP referred to in paragraph (1) is prepared using the format as per the examples listed in:

 

a.

Appendix letter A.1., for resident Taxpayer Applicants; or

 

b.

Appendix letter A.2., for Indonesian Citizen Applicants, which constitute an integral part of this Ministerial Regulation.

(6)

The statement letter referred to in paragraph (1) subparagraph e number 3) is prepared using the format as per the examples listed in Appendix letter A.3. which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

 

(1)

For the request for the implementation of MAP referred to in Article 3 paragraph (3), examination is performed of:

 

a.

the completeness of the fulfilment of the requirements of the request for the implementation of MAP pursuant to the provisions referred to in Article 3 paragraph (1) or paragraph (2); and

 

b.

the conformity between the materials for which the request for the implementation of MAP is submitted and the tax treatment for which the request for the implementation of MAP referred to in Article 2 paragraph (2), paragraph (3) subparagraph c or paragraph (4) may be submitted,

 

to determine whether the request for the implementation of MAP may be followed up or not.

(2)

The Director General of Taxes follows up on the results of the examination referred to in paragraph (1) in respect of the request for the implementation of MAP submitted by the Applicant by issuing:

 

a.

a written notification to the Applicant that the request for the implementation of MAP can be followed up and the request for the implementation of MAP in writing to the Competent Authority of the Tax Treaty Partner, if the request for the implementation of MAP fulfils the requirements and the conformity of the materials; or

 

b.

a rejection letter of the request for the implementation of MAP to the Applicant stating the matters constituting the basis of the rejection, if the request for the implementation of MAP does not fulfil the requirements and/or does not fulfil the conformity of the materials,

 

within a maximum period of 1 (one) month after the request for the implementation of MAP is received.

(3)

The Director General of Taxes follows up on the results of the examination referred to in paragraph (1) in respect of the request for the implementation of MAP submitted by the Competent Authority of the Tax Treaty Partner by issuing:

 

a.

a written notification to the Competent Authority of the Tax Treaty Partner and the resident Taxpayer related to the request for the implementation of MAP that the request for the implementation of MAP can be followed up if the request for the implementation of MAP fulfils the requirements; or

 

b.

a rejection letter of the request for the implementation of MAP to the Competent Authority of the Tax Treaty Partner stating the matters constituting the basis of the rejection, if the request for the implementation of MAP does not fulfil the requirements,

 

within a maximum period of 1 (one) month after the request for the implementation of MAP is received.

(4)

If the time limit referred to in paragraph (2) and paragraph (3) has elapsed and the Director General of Taxes has not issued a written notification, the request for the implementation of MAP is deemed able to be followed up.

(5)

For the request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b, the Director General of Taxes issues:

 

a.

the request for the implementation of MAP in writing to the Competent Authority of the Tax Treaty Partner; and

 

b.

a written notification concerning the submission of the request for the implementation of MAP referred to in subparagraph a to the resident Taxpayer related to the request for the implementation of MAP.

(6)

If the request for the implementation of MAP to the Competent Authority of the Tax Treaty Partner referred to in paragraph (2) subparagraph a and paragraph (5) subparagraph a does not receive a written answer from the Competent Authority of the Tax Treaty Partner within a maximum period 8 (eight) months since the request for the implementation of MAP is submitted, the Director General of Taxes issues a written notification to:

 

a.

the Applicant or the resident Taxpayer related to the request for the implementation of MAP that the request for the implementation of MAP cannot be followed up; and

 

b.

the Competent Authority of the Tax Treaty Partner that the request for the implementation of MAP is revoked.

(7)

For the rejected request for the implementation of MAP referred to in paragraph (2) subparagraph b and the request for the implementation of MAP which cannot be followed up referred to in paragraph (6) subparagraph a, the Applicant may resubmit the request for the implementation of MAP insofar as the time limit referred to in Article 3 paragraph (1) subparagraph c has not elapsed.

 

 

 

 

 

(1)

The Director General of Taxes conducts negotiations with the Competent Authority of the Tax Treaty Partner within a period of 24 (twenty four) months from:

 

a.

the receipt of the request for the implementation of MAP in writing from the Competent Authority of the Tax Treaty Partner referred to in Article 2 paragraph (3) subparagraph c; or

 

b.

the submission of the request for the implementation of MAP in writing to the Competent Authority of the Tax Treaty Partner referred to in Article 4 paragraph (2) subparagraph a and paragraph (5) subparagraph a.

(2)

The negotiations referred to in paragraph (1) are conducted through:

 

a.

face-to-face meetings;

 

b.

telephone connection;

 

c.

video conferencing; and/or

 

d.

other channels agreed upon by the Director General of Taxes and the Competent Authority of the Tax Treaty Partner.

(3)

The Director General of Taxes establishes a delegation of negotiators in the context of the negotiations referred to in paragraph (1).

(4)

The results of the negotiations referred to in paragraph (1) are outlined in a Mutual Agreement which may contain an agreement or disagreement on the materials for which the request for the implementation of MAP is submitted.

(5)

The Mutual Agreement containing a disagreement referred to in paragraph (4) may occur under the following conditions:

 

a.

the negotiations result in an agreement to establish Mutual Agreement which contains a disagreement;

 

b.

the negotiations do not result in an agreement until the deadline referred to in paragraph (1);

 

c.

the negotiations are conducted simultaneously with the appeal process referred to in Article 2 paragraph (6) subparagraph b and until the appeal decision is pronounced, the negotiations have not resulted in an agreement;

 

d.

the statute of limitation of the assessment has elapsed as stipulated under the General Provisions and Tax Procedures Law for the tax year, the fraction of the tax year or the taxable period included in the request for the implementation of MAP and the negotiations have not resulted in an agreement; or

 

e.

the resident Taxpayer participates in the tax amnesty program stipulated under statutory tax provisions for the tax year, the fraction of the tax year or the taxable period included in the request for the implementation of MAP.

(6)

The Director General of Taxes follows up on the results of the negotiations referred to in paragraph (4) by issuing a decision letter within a maximum period of 1 (one) month from:

 

a.

the receipt of the written notification from the Competent Authority of the Tax Treaty Partner that the Mutual Agreement can be implemented; and

 

b.

the submission of the written notification to the Competent Authority of the Tax Treaty Partner that the Mutual Agreement can be implemented.

(7)

The decision letter referred to in paragraph (6) is prepared using the format as per the examples listed in:

 

a.

Appendix letter B.1., for Mutual Agreement in Respect of Double Taxation; or

 

b.

Appendix letter B.2., for Mutual Agreement Other Than in Respect of Double Taxation, which constitute an integral part of this Ministerial Regulation.

(8)

The decision letter referred to in paragraph (6) is submitted to:

 

a.

the Applicant;

 

b.

the resident Taxpayer related to the request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b and subparagraph c; and/or

 

c.

work units within the Directorate General of Taxes authorised to follow up.

 

 

 

 

 

(1)

In the context of the negotiations referred to in Article 5 paragraph (1):

 

a.

the Applicant must submit information and/or evidence or details referred to in Article 3 paragraph (1) subparagraph e number 2) directly to the Director General of Taxes through the Director of International Taxation in hardcopy and electronic form no later than 2 (two) months after:

 

 

1)

the date of issuance of the written notification that the request for the implementation of MAP can be followed up referred to in Article 4 paragraph (2) subparagraph a; or

 

 

2)

the end of the 1 (one) month period, thereby, the request for the implementation of MAP submitted by the Applicant is deemed able to be followed up as referred to in Article 4 paragraph (4).

 

b.

the Director General of Taxes is authorised to:

 

 

1)

request information and/or evidence or details other than that referred to in Article 3 paragraph (1) subparagraph e number 2 to:

 

 

 

a)

the Applicant;

 

 

 

b)

the resident Taxpayer related to the request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b and subparagraph c; and/or

 

 

 

c)

other related parties;

 

 

2)

conduct discussions with the Applicant, the resident Taxpayer related to the request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b and subparagraph c and/or other related parties;

 

 

3)

inspect the place of business of the Applicant and/or the resident Taxpayer related to the request for the implementation of MAP referred to in Article 2 paragraph (3) subparagraph b and subparagraph c;

 

 

4)

exchange tax information in the context of MAP with Tax Authorities of the Tax Treaty Partner; and/or

 

 

5)

conduct inspections for other purposes in the context of MAP to obtain required information and/or evidence or information in the context of completing MAP.

(2)

For the purposes of negotiations referred to in Article 5 paragraph (1), the Competent Authority of the Tax Treaty Partner may request information and/or evidence or details from the parties referred to in paragraph (1) subparagraph b number 1).

(3)

The request for information and/or evidence or details from the Competent Authority of the Tax Treaty Partner referred to in paragraph (2) may only be submitted through:

 

a.

procedures for the exchange of information based on the request to the Director General of Taxes stipulated under the Tax Treaty or international agreement stipulating the exchange of tax information; and/or

 

b.

a direct request to the delegation of negotiators referred to in Article 5 paragraph (3) during the negotiation process.

(4)

The Director General of Taxes may terminate the negotiations referred to in Article 5 paragraph (1) if:

 

a.

the Applicant does not submit information and/or evidence or details within the time limit referred to in paragraph (1) subparagraph a; or

 

b.

the Competent Authority of the Tax Treaty Partner requests information and/or evidence or details that does not comply with the provisions referred to in paragraph (3).

(5)

The Director General of Taxes submits a written notification concerning the termination of the negotiations referred to in paragraph (4) to:

 

a.

the Applicant;

 

b.

the resident Taxpayer related to the request for the implementation of MAP; and/or

 

c.

the Competent Authority of the Tax Treaty Partner.

(6)

The written notification concerning the termination of the negotiations referred to in paragraph (5) subparagraph a and subparagraph b is prepared using the format as per the examples listed in Appendix letter C which constitutes an integral part of this Ministerial Regulation.

 

 

 

 

 

Further provisions on the handling of the request for the implementation of MAP referred to in Article 4, Article 5 and Article 6 are stipulated in a Director General of Taxes Regulation.

 

 

 

 

 

 

(1)

For the request for the implementation of MAP referred to in Article 2 paragraph (1) and paragraph (3), an application for revocation may be submitted by:

 

a.

the Applicant;

 

b.

Director General of Taxes; and/or

 

c.

the Competent Authority of the Tax Treaty Partner.

(2)

The application for revocation by the Applicant referred to in paragraph (1) subparagraph a and the Competent Authority of the Tax Treaty Partner referred to in paragraph (1) subparagraph c shall be submitted to the Director General of Taxes through the Director of International Taxation.

(3)

The application for revocation submitted by the Applicant referred to in paragraph (1) subparagraph a must fulfil the following requirements:

 

a.

submitted in writing in the Indonesian language;

 

b.

submitted within a maximum period of 6 (six) months since the start of the negotiations referred to in Article 5 paragraph (1);

 

c.

including reasons for revocation; and

 

d.

signed by the Applicant or representatives referred to in Article 32 paragraph (1) of the General Provisions and Tax Procedures Law.

(4)

The application for revocation referred to in paragraph (3) is prepared using the format as per the examples listed in:

 

a.

Appendix letter D.1., for resident Taxpayer Applicants; or

 

b.

Appendix letter D.2., for Indonesian Citizen Applicants, which constitute an integral part of this Ministerial Regulation.

(5)

In respect of the application for revocation submitted by the Applicant, the Director General of Taxes verifies the fulfilment of the requirements for revocation of the request for the implementation of MAP referred to in paragraph (3) and issues a written notification to:

 

a.

the Applicant that the application for revocation is approved or not approved; and

 

b.

the Competent Authority of the Tax Treaty Partner that the request for the implementation of MAP is revoked, if the application for revocation is approved and submitted after the start of negotiations,

 

within 10 (ten) working days since the application for revocation is received by the Director General of Taxes.

(6)

The application for revocation of the request for the implementation of MAP referred to in paragraph (1) subparagraph b and subparagraph c may be submitted insofar as the application is submitted before Mutual Agreement is obtained.

(7)

For the application for revocation of the request for the implementation of MAP submitted by the Competent Authority of the Tax Treaty Partner referred to in paragraph (1) subparagraph c, the Director General of Taxes verifies the fulfilment of the provisions referred to in paragraph (6) and issues a written notification to:

 

a.

the Competent Authority of the Tax Treaty Partner that the application for revocation is approved or not approved; and

 

b.

the resident Taxpayer related to the request for the implementation of MAP from the Competent Authority of the Tax Treaty Partner that the negotiations are terminated if the application for revocation is approved.

(8)

If the Director General of Taxes revokes the request for the implementation of MAP referred to in paragraph (1) subparagraph b, the Director General of Taxes issues a written notification that the negotiations are terminated to:

 

a.

the Competent Authority of the Tax Treaty Partner; and

 

b.

the resident Taxpayer related to the request for the implementation of MAP from the Director General of Taxes.

(9)

The written notification concerning the termination of negotiations referred to in paragraph (7) subparagraph b and paragraph (8) subparagraph b is prepared using the format as per the examples listed in Appendix letter C which constitutes an integral part of this Ministerial Regulation.

(10)

Further provisions on the handling of revocation of the request for the implementation of MAP referred to in paragraph (1) to paragraph (9) are stipulated in a Director General of Taxes Regulation.

 

 

 

 

 

 

(1)

If the implementation of MAP results in a Mutual Agreement before a notice of tax assessment is issued, the resident Taxpayer related to the implementation of MAP amends the Tax Return or discloses the incorrect completion of the Tax Return taking into account the agreement in the Mutual Agreement within the time limit stipulated under statutory provisions in the field of taxation.

(2)

If the resident Taxpayer related to the implementation of MAP does not amend the Tax Return or disclose the incorrect completion of the Tax Return within a period of 3 (three) months from the issuance of the decision letter referred to in Article 5 paragraph (6) or takes into account the statute of limitation of the assessment stipulated under the General Provisions and Tax Procedures Law, the Director General of Taxes issues a notice of tax assessment taking into account the agreement in the Mutual Agreement.

(3)

If the implementation of MAP results in a Mutual Agreement after the notice of tax assessment is issued but no objection is filed as referred to in Article 2 paragraph (6) subparagraph a or no application for the relief or cancellation of the incorrect notice of tax assessment is submitted as referred to in Article 2 paragraph (6) subparagraph c, the Director General of Taxes ex officio amends the notice of tax assessment pursuant to the provisions referred to in Article 16 of the General Provisions and Tax Procedures Law taking into account the agreement in the Mutual Agreement.

(4)

If the implementation of MAP performed simultaneously with the filing of an objection referred to in Article 2 paragraph (6) subparagraph a or the application for the relief or cancellation of the incorrect notice of tax assessment referred to in Article 2 paragraph (6) subparagraph c results in Mutual Agreement before the decision letter on the objection or relief or cancellation of the incorrect notice of tax assessment is issued, the Director General of Taxes issues the decision letter taking into account the agreement in the Mutual Agreement.

(5)

If the implementation of MAP results in a Mutual Agreement after the Director General of Taxes issues a decision letter on the relief or cancellation of the incorrect notice of tax assessment for the application referred to in Article 2 paragraph (6) subparagraph c, the Director General of Taxes ex officio amends the decision letter pursuant to the provisions referred to in Article 16 of the General Provisions and Tax Procedures Law taking into account the agreement in the Mutual Agreement.

(6)

If the implementation of MAP results in Mutual Agreement after the Director General of Taxes issues a decision letter on the objection but no appeal has been filed or the Resident Taxpayer related to the implementation of MAP files an appeal but it has been revoked and the tax court has granted written approval for the revocation of the appeal, the Director General of Taxes ex officio amends the decision letter on the objection pursuant to the provisions referred to in Article 16 of the General Provisions and Tax Procedures Law taking into account the agreement in the Mutual Agreement.

(7)

If the implementation of MAP results in Mutual Agreement which results in an excess of withholding and/or collection of Income Tax payable, the resident taxpayer of the Tax Treaty Partner applies for a refund of the tax that should not otherwise be payable pursuant to statutory provisions in the field of taxation.

(8)

The follow-up referred to in paragraph (3), paragraph (5) and paragraph (6) may also be carried out based on the application of the resident Taxpayer related to the implementation of MAP pursuant to statutory provisions in the field of taxation.

(9)

Further provisions on the completion of the follow-up to the Mutual Agreement referred to in paragraph (1) to paragraph (8) are stipulated in a Director General of Taxes Regulation.

 

 

 

 

 

 

When this Ministerial Regulation comes into force, the implementation of MAP pursuant to the Minister of Finance Regulation Number 240/PMK.03/2014 concerning Procedures for the Implementation of Mutual Agreement Procedure and no Director General of Taxes Decree containing the Mutual Agreement has been issued, shall be followed up pursuant to this Ministerial Regulation.

 

 

 

 

 

 

When this Ministerial Regulation comes into force, the Minister of Finance Regulation Number 240/PMK.03/2014 concerning Procedures for the Implementation of Mutual Agreement Procedure (Official Gazette of the Republic of Indonesia of 2014 Number 1952), is revoked and declared invalid.

 

 

 

 

 

This Ministerial Regulation shall come into force on the date of promulgation.

 

 

 

 

 

For public cognisance, this Ministerial Regulation shall be promulgated by placement in the Official Gazette of the Republic of Indonesia.

 

 

 

 

 

Enacted in Jakarta

on 26 April 2019

MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,

signed

SRI MULYANI INDRAWATI

 

Promulgated in Jakarta

on 26 April 2019

DIRECTOR GENERAL OF LEGISLATION

MINISTRY OF LAW AND HUMAN RIGHTS OF THE REPUBLIC OF INDONESIA,

signed

WIDODO EKATJAHJANA

OFFICIAL GAZETTE OF THE REPUBLIC OF INDONESIA OF 2019 NUMBER 468