a.

that to provide legal certainty, fairness, convenience and clarity for the public in understanding the provisions on the exercise of tax rights and fulfilment of tax obligations and the integration of population data with tax data, it is necessary to stipulate the procedures for the exercise of tax rights and fulfilment of tax obligations;

b.

that the provisions on the procedures for the exercise of tax rights and fulfilment of tax obligations regulated under Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations as amended by Government Regulation Number 9 of 2021 concerning the Tax Treatment to Support the Ease of Doing Business no longer comply with the needs of tax administration and the regulation under Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations;

c.

that based on the considerations referred to in letter a and letter b as well as to implement the provisions under Article 44E paragraph (1) of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations, it is necessary to enact a Government Regulation concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations;

 

 

 

 

1.

Article 5 paragraph (2) of the 1945 Constitution of the Republic of Indonesia;

2.

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 7 of 2021 concerning the Harmonisation of Tax Regulations (State Gazette of the Republic of Indonesia of 2021 Number 246, Supplement to the State Gazette of the Republic of Indonesia Number 6736);

 

 

 

 

GOVERNMENT REGULATION CONCERNING PROCEDURES FOR THE EXERCISE OF TAX RIGHTS AND FULFILMENT OF TAX OBLIGATIONS.

 

 

 

 

 

Referred to herein this Government Regulation:

1.

General Provisions and Tax Procedures Law is Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

2.

Value Added Tax Law is Law Number 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

3.

Land and Building Tax Law is Law Number 12 of 1985 concerning Land and Building Tax as amended by Law Number 12 of 1994 concerning the Amendment to Law Number 12 of 1985 concerning Land and Building Tax.

4.

Income Tax is Income Tax referred to in Law Number 7 of 1983 concerning Income Tax as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations.

5.

Value Added Tax is Value Added Tax referred to in the Value Added Tax Law.

6.

Land and Building Tax is Land and Building Tax referred to in the Land and Building Tax Law.

7.

Taxpayer is any individual or entity, comprising a taxpayer, a withholding agent and a collecting agent having tax rights and obligations pursuant to statutory provisions in the field of taxation.

8.

Audit is a series of activities to collect and process data, information and/or evidence conducted in an objective and professional manner based on auditing standards to assess tax compliance in fulfilling tax obligations and/or for other purposes to implement statutory provisions in the field of taxation.

9.

Closing Conference is a discussion between a Taxpayer and tax auditors on Audit findings, the results of which are stated in the official report of Closing Conference, which are signed by both parties and contain corrections, either those approved or disapproved.

10.

Preliminary Audit is an audit conducted to find preliminary evidence of whether an alleged tax crime has occurred.

11.

Tax crime investigation, hereinafter referred to as Investigation, is a series of activities conducted by an investigator to find and collect evidence to uncover a tax crime and find the suspect.

12.

Investigator is an appointed Civil Servant of the Directorate General of Taxes provided with special authority as an Investigator to conduct an Investigation pursuant to statutory provisions.

13.

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

14.

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

15.

Mutual Agreement is the results agreed upon in the application of a Tax Treaty by the competent authority of the Government of Indonesia and the government of the tax Treaty partner in connection with the implemented Mutual Agreement Procedure.

16.

Notice of Tax Assessment is a notice of assessment that includes the Notice of Tax Underpayment Assessment, Notice of Additional Tax Underpayment Assessment, Notice of Nil Tax Assessment and Notice of Tax Overpayment Assessment.

17.

Notice of Tax Underpayment Assessment is a Notice of Tax Assessment that specifies the principal amount of tax payable, the amount of tax credit, the principal amount of tax underpayment, the amount of administrative penalties and the total outstanding tax.

18.

Notice of Additional Tax Underpayment Assessment is a Notice of Tax Assessment that specifies an additional amount of tax payable over the previously issued tax assessment.

19.

Notice of Nil Tax Assessment is a Notice of Tax Assessment that specifies the principal amount of tax payable is equal to the amount of tax credit or there is no tax payable and no tax credit.

20.

Notice of Tax Overpayment Assessment is a Notice of Tax Assessment that specifies the amount of tax overpayment resulting from a greater amount of tax credit than tax payable or the tax that should not otherwise be payable.

21.

Notice of Tax Collection is a notice for the collection of tax and/or administrative penalties in the form of interest and/or fines.

22.

Objection Decision Letter is a decision on an objection against a Notice of Tax Assessment or withholding or collection by a third party filed by a Taxpayer.

23.

Administrative Penalty Relief Decision Letter is a decision letter concerning the relief of administrative penalties.

24.

Administrative Penalty Nullification Decision Letter is a decision letter concerning the nullification of administrative penalties.

25.

Tax Assessment Relief Decision Letter is a decision letter concerning the relief of tax assessment.

26.

Tax Assessment Cancellation Decision Letter is a decision letter concerning the cancellation of tax assessment.

27.

Preliminary Tax Refund Decision Letter is a decision letter that determines the amount of preliminary tax refunds for a certain Taxpayer.

28.

Interest Compensation Decision Letter is a decision letter that determines the amount of interest compensation granted to a Taxpayer.

29.

Amendment Decision Letter is a decree for amending errors in writing, calculation and/or errors in the application of particular statutory tax laws and regulations in a Notice of Tax Assessment, Notice of Tax Collection, Amendment Decision Letter, Objection Decision Letter, Administrative Penalty Relief Decision Letter, Administrative Penalty Nullification Decision Letter, Tax Assessment Relief Decision Letter, Tax Assessment Cancellation Decision Letter, Preliminary Tax Refund Decision Letter or Interest Compensation Decision Letter, Notice of Tax Due, Notice of Land and Building Tax Assessment, Notice of Land and Building Tax Collection, Land and Building Tax relief decision letter, relief of Land and Building Tax administrative fine relief decision letter or mutual agreement decision letter.

30.

Notice of Land and Building Tax Assessment is a notice of assessment that determines the principal amount of Land and Building Tax or the difference in the principal amount of Land and Building Tax, the amount of administrative penalties and the amount of Land and Building Tax payable.

31.

Reprimand Letter is a letter issued by an official to reprimand or warn Taxpayers to settle their tax liabilities.

32.

Taxable Period is a period used as the basis for a Taxpayer to calculate, remit and file taxes payable in a certain period as determined in the General Provisions and Tax Procedures Law.

33.

Tax Year is a period of 1 (one) calendar year unless a Taxpayer adopts an accounting year that is different from the calendar year.

34.

Fraction of a Tax Year is a fraction of a period of 1 (one) Tax Year.

35.

Tax Return is a letter used by a Taxpayer to file the calculation and/or payment of taxes, taxable objects and/or non-taxable objects and/or assets and liabilities pursuant to statutory provisions in the field of taxation.

36.

Periodic Tax Return is a Tax Return for a particular Taxable Period.

37.

Annual Tax Return is a Tax Return for a Tax Year or a Fraction of a Tax Year.

38.

Tax Payment Slip is a receipt of tax payment or remittance using a specific form or other means to the state treasury, through a place of payment appointed by the Minister.

39.

Appeal Decision is a tax judicial body decision an appeal against an Objection Decision filed by a Taxpayer.

40.

Lawsuit Decision is a tax judicial body decision on a lawsuit against materials that may be filed pursuant to statutory tax provisions.

41.

Civil Review Decision is a Supreme Court decision on a civil review request by a Taxpayer or the Director General of Taxes against an Appeal Decision or Lawsuit Decision issued by the tax judicial body.

42.

Mutual Agreement Decision Letter is a decision letter issued to follow up on the agreement in a Mutual Agreement.

43.

Residents are Indonesian Citizens and Foreigners residing in Indonesia.

44.

Population Data is individual data and/or structured aggregate data as a result of population registration and civil registration activities.

45.

User Feedback Data is data that is unique to each user institution that has accessed Population Data and has been administered in the population administration system.

46.

National Identification Number is a Resident’s identification number that is unique or distinctive, single and inherent to a person registered as an Indonesian Resident as regulated under the Law that stipulates population administration.

47.

Carbon Tax is a tax levied on carbon emissions that harm the environment.

48.

Minister is the minister who administers governmental affairs in the field of state finances.

 

 

 

 

 

(1)

Any Taxpayer that has fulfilled subjective and objective requirements pursuant to statutory provisions in the field of taxation shall be obliged to register at the office of the Directorate General of Taxes whose working area covers the Taxpayer’s residence or domicile and be provided with a Taxpayer Identification Number.

(2)

The Taxpayer Identification Number referred to in paragraph (1) for an individual Taxpayer constituting a Resident shall use the National Identification Number.

(3)

For Residents, the registration referred to in paragraph (1) is carried out by activating the National Identification Number as the Taxpayer Identification Number in tax administration.

(4)

The obligation to register referred to in paragraph (1) also applies to a married woman who is taxed separately because:

 

a.

she is separated from her husband pursuant to a court verdict;

 

b.

she enters into a written income and asset separation agreement; or

 

c.

she wishes to separately exercise her tax rights and fulfil her tax obligations from her husband.

(5)

If the married woman who is taxed separately referred to in paragraph (4) already has a Taxpayer Identification Number before being married, the married woman does not need to register to obtain a Taxpayer Identification Number.

(6)

For married women other than those who fulfil the provisions referred to in paragraph (4), the exercise of her tax rights and the fulfilment of her tax obligations shall be combined with the exercise of her husband’s tax rights and the fulfilment of her husband’s tax obligations.

 

 

 

 

Undivided inheritance as a unit in lieu of the beneficiaries in its position as a tax subject shall use the Taxpayer Identification Number of the individual leaving the inheritance and be represented by:

a.

one of the heirs/heiresses;

b.

executor of the will; or

c.

trustee.

 

 

 

 

(1)

The Director General of Taxes may ex officio perform Taxpayer Identification Number deregistration and/or Taxable Person deregistration based on Audits or examination.

(2)

The Director General of Taxes based on Taxpayers’ application may perform VAT deregistration and/or VAT deregistration based on Audits referred to in paragraph (1).

(3)

The Director General of Taxes may perform VAT deregistration and/or VAT deregistration based on examination referred to in paragraph (1) for Taxpayers that fulfil certain criteria pursuant to statutory provisions on procedures for Taxpayer registration and Taxpayer Identification Number deregistration as well as VAT registration and deregistration.

(4)

Taxpayer Identification Numbers referred to in paragraph (1), paragraph (2) and paragraph (3) that constitute Resident individual Taxpayers are deregistered if the Taxpayers do not fulfil the subjective and/or objective requirements pursuant to statutory provisions in the field of taxation.

(5)

If Resident individual Taxpayers do not fulfil the subjective and/or objective requirements referred to in paragraph (4), the National Identification Number is deactivated as the Taxpayer Identification Number in tax administration.

 

 

 

 

 

(1)

Taxpayers may voluntarily amend filed Tax Returns by submitting a written statement.

(2)

The amendment referred to in paragraph (1) may be carried out provided that the Director General of Taxes has not carried out the following actions:

 

a.

Audit; or

 

b.

Preliminary Audit.

(3)

An Audit referred to in paragraph (2) subparagraph a commences since the notice of Audit is given to Taxpayers, their representatives, attorney, employees or adult family members of the Taxpayers.

(4)

The Preliminary Audit referred to in paragraph (2) subparagraph b is a public Preliminary Audit, that commences after the notice of Preliminary Audit is given to Taxpayers, their representatives, attorney, employees or adult family members of the Taxpayers.

(5)

The written statement in the amendment of Tax Returns referred to in paragraph (1) is carried out by providing a sign in the available places in the Tax Returns stating that the Taxpayer concerned amends the Tax Return.

(6)

If the amendment of Tax Returns referred to in paragraph (1) states loss or tax overpayment, the amended Tax Returns must be filed no later than 2 (two) years before the expiration of the tax assessment.

(7)

Further provisions on procedures for the amendment of Tax Returns are regulated in a Ministerial Regulation.

 

 

 

 

(1)

Taxpayers may amend filed Annual Tax Return if the Taxpayers receive the:

 

a.

Notice of Tax Assessment;

 

b.

Objection Decision Letter;

 

c.

Tax Assessment Relief Decision Letter;

 

d.

Tax Assessment Cancellation Decision Letter;

 

e.

Amendment Decision Letter;

 

f.

Mutual Agreement Decision Letter;

 

g.

Appeal Decision; or

 

h.

Civil Review Decision,

 

for the previous Tax Year or several previous Tax Years, which states a tax loss that is different from the tax loss that has been carried forward in the Annual Tax Return as regulated under Article 8 paragraph (6) of the General Provisions and Tax Procedures Law, by submitting a written statement.

(2)

The written statement in the amendment of the Annual Tax Return which states a tax loss that is different from the tax loss that has been carried forward in the Annual Tax Return referred to in paragraph (1) is carried out by providing a sign in the available places in the Annual Tax Return stating that the Taxpayer concerned amends the Annual Tax Return.

(3)

The amendment referred to in paragraph (1) must be carried out with the following provisions:

 

a.

no later than 3 (three) months after receiving the Notice of Tax Assessment, Objection Decision Letter, Tax Assessment Relief Decision Letter, Tax Assessment Cancellation Decision Letter, Amendment Decision Letter, Mutual Agreement Decision Letter, Appeal Decision or Civil Review Decision; and

 

b.

does not exceed the amendment deadline of Tax Returns as regulated under Article 8 paragraph (1a) of the General Provisions and Tax Procedures Law if the amendment of Tax Returns states loss or tax overpayment.

(4)

The period of 3 (three) months to amend the Annual Tax Return referred to in paragraph (3) subparagraph a is calculated since the date of receipt of the:

 

a.

Notice of Tax Assessment;

 

b.

Objection Decision Letter;

 

c.

Tax Assessment Relief Decision Letter;

 

d.

Tax Assessment Cancellation Decision Letter;

 

e.

Amendment Decision Letter;

 

f.

Mutual Agreement Decision Letter;

 

g.

Appeal Decision; or

 

h.

Civil Review Decision,

 

by Taxpayers.

(5)

The date of receipt referred to in paragraph (4) is the date of:

 

a.

the postmark in the event of postal delivery;

 

b.

facsimile in the event of facsimile delivery;

 

c.

direct receipt in the event of hand delivery; or

 

d.

postage in the event of electronic postage.

(6)

If the Taxpayers:

 

a.

do not amend Annual Tax Return within the period of 3 (three) months referred to in paragraph (3) subparagraph a; or

 

b.

cannot amend Annual Tax Return because the period referred to in paragraph (3) subparagraph b has elapsed,

 

the Director General of Taxes recalculates the loss carry-forward in the Annual Tax Return ex officio.

(7)

The loss carry-forward referred to in paragraph (6) is recalculated based on the tax loss according to the:

 

a.

Notice of Tax Assessment;

 

b.

Objection Decision Letter;

 

c.

Tax Assessment Relief Decision Letter;

 

d.

Tax Assessment Cancellation Decision Letter;

 

e.

Amendment Decision Letter;

 

f.

Mutual Agreement Decision Letter;

 

g.

Appeal Decision; or

 

h.

Civil Review Decision,

 

in the issuance of the Notice of Tax Assessment, Objection Decision Letter, Tax Assessment Relief Decision Letter, Tax Assessment Cancellation Decision Letter, Amendment Decision Letter or Mutual Agreement Decision Letter.

(8)

Further provisions on procedures for the amendment of the Annual Tax Return are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

If Taxpayers are subject to a Preliminary Audit, Taxpayers may voluntarily disclose in a written statement concerning the untruth of their actions, as follows:

 

a.

not filing Tax Returns; or

 

b.

filing incorrect or incomplete Tax Returns or attaching incorrect information,

 

as regulated under Article 38 or Article 39 paragraph (1) subparagraph c and subparagraph d of the General Provisions and Tax Procedures Law, insofar as the commencement of the Investigation has not been notified to the Public Prosecutor through official investigators of the Indonesian National Police.

(2)

The untruth of actions referred to in paragraph (1) may be disclosed for actions regulated under Article 38 or Article 39 paragraph (1) subparagraph c or subparagraph d of the General Provisions and Tax Procedures Law, either independent or related to a tax crime as regulated under Article 39 paragraph (1), except for subparagraph c and subparagraph d and paragraph (3), Article 39A and Article 43 of the General Provisions and Tax Procedures Law and Article 24 and Article 25 of the Land and Building Tax Law.

(3)

The written statement referred to in paragraph (1) must be signed by the Taxpayers and attached with:

 

a.

the calculation of the underpayment of tax payable;

 

b.

the Tax Payment Slip as proof of settlement of the underpayment of tax payable; and

 

c.

the Tax Payment Slip as the payment of the administrative penalty in the form of a fine as regulated under Article 8 paragraph (3a) of the General Provisions and Tax Procedures Law.

(4)

Payment of tax payable referred to in paragraph (3) subparagraph b and payment of administrative penalties in the form of fines referred to in paragraph (3) subparagraph c constitute a recovery of losses to state revenues.

(5)

If the disclosure of untruth of actions by Taxpayers referred to in paragraph (1) is in accordance with the actual situation, the Taxpayers shall not be subject to an Investigation.

(6)

If after the Taxpayers have disclosed untruth of actions referred to in paragraph (5), data is found which states otherwise than the disclosure of untruth of actions, Taxpayers may continue to be subject to a Preliminary Audit of a Taxable Period, a Fraction of a Tax Year and/or a Tax Year, for the types of taxes subject to the disclosure untruth of actions.

(7)

Procedures for the disclosure of untruth of actions by Taxpayers are implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

If the Taxpayers have been subject to Audits, the Taxpayers may disclose in a separate report the incorrect completion of filed Tax Returns in accordance with the actual situation as regulated under Article 8 paragraph (4) of the General Provisions and Tax Procedures Law, insofar as the Director General of Taxes has not submitted the notice of tax Audit findings.

(2)

The separate report referred to in paragraph (1) must be signed by the Taxpayers and attached with:

 

a.

the calculation of the underpaid tax according to the actual situation in the Tax Return format;

 

b.

the Tax Payment Slip for the settlement of the underpaid tax if the disclosure of the incorrect completion of Tax Returns results in the underpaid tax being greater; and

 

c.

the Tax Payment Slip for the administrative penalty in the form of a fine as regulated under Article 8 paragraph (5) of the General Provisions and Tax Procedures Law if the disclosure of the incorrect completion of Tax Returns results in the underpaid tax being greater.

(3)

To prove the correctness of the disclosure of the incorrect completion of Tax Returns referred to in paragraph (1), Audits are continued and for the Audit findings, a Notice of Tax Assessment is issued considering the separate report and taking into account the tax payable that has been paid.

(4)

If the Audit findings referred to in paragraph (3) prove that the disclosure of the incorrect completion of Tax Returns by Taxpayers does not reflect the actual situation, a Notice of Tax Assessment shall be issued according to the actual situation.

(5)

The Tax Payment Slip referred to in paragraph (2) subparagraph b shall be taken into account as a tax credit in the Notice of Tax Assessment issued based on the Audit findings referred to in paragraph (3) and paragraph (4).

(6)

Tax Payment Slip referred to in paragraph (2) subparagraph c is proof of payment of the administrative penalties in connection with the disclosure of the incorrect completion of Tax Returns.

(7)

Further provisions on procedures for the disclosure in a separate report of the incorrect completion of Tax Returns are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

Taxpayers must pay or remit tax payable by using the Tax Payment Slip to the state treasury through the place of payment.

(2)

Payment or remittance of tax referred to in paragraph (1) may also be carried out using other administrative means equivalent to the Tax Payment Slip.

(3)

Provisions on other administrative means referred to in paragraph (2) shall be implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

 

(1)

Tax overpayment due to the:

 

a.

Notice of Tax Overpayment Assessment;

 

b.

Preliminary Tax Refund Decision Letter;

 

c.

Objection Decision Letter;

 

d.

Amendment Decision Letter;

 

e.

Administrative Penalty Relief Decision Letter;

 

f.

Administrative Penalty Nullification Decision Letter;

 

g.

Tax Assessment Relief Decision Letter;

 

h.

Tax Assessment Cancellation Decision Letter;

 

i.

Mutual Agreement Decision Letter;

 

j.

Appeal Decision;

 

k.

Civil Review Decision; and

 

l.

Interest Compensation Decision Letter,

 

are refunded to Taxpayers provided that if the Taxpayers have tax liabilities, it is immediately taken into account to settle the tax liabilities.

(2)

Tax refunds referred to in paragraph (1) are carried out 1 (one) month since:

 

a.

the application for tax refunds is received in connection with the issuance of the Notice of Tax Overpayment Assessment as regulated under Article 17 paragraph (1) of the General Provisions and Tax Procedures Law;

 

b.

the issuance of:

 

 

1.

Notice of   Overpayment Assessment as regulated under Article 17 paragraph (2) and Article 17B of the General Provisions and Tax Procedures Law;

 

 

2.

Preliminary Tax Refund Decision Letter as regulated under Article 17C or Article 17D of the General Provisions and Tax Procedures Law;

 

 

3.

Objection Decision Letter;

 

 

4.

Amendment Decision Letter;

 

 

5.

Administrative Penalty Relief Decision Letter;

 

 

6.

Administrative Penalty Nullification Decision Letter;

 

 

7.

Tax Assessment Relief Decision Letter;

 

 

8.

Tax Assessment Cancellation Decision Letter;

 

 

9.

Interest Compensation Decision Letter; or

 

 

10.

Mutual Agreement Decision Letter;

 

 

or

 

c.

the receipt of the:

 

 

1.

Appeal Decision; or

 

 

2.

Civil Review Decision,

 

 

resulting in a tax overpayment.

(3)

If the period referred to in paragraph (2) has elapsed, the Taxpayers are given interest compensation as regulated under Article 11 paragraph (3) of the General Provisions and Tax Procedures Law.

 

 

 

 

 

(1)

Books of accounts, records and documents used as the basis for bookkeeping or recording and other documents, including the results of data processing of electronically maintained bookkeeping or online application programs must be retained for 10 (ten) years in Indonesia, namely at the place of activity or residence of individual Taxpayers or the domicile of corporate Taxpayers.

(2)

If Taxpayers conduct transactions with parties related to the Taxpayers, in addition to exercising the obligation to retain other documents referred to in paragraph (1), Taxpayers are required to retain additional documents and/or information to support that the transactions conducted with related parties are in accordance with the arm’s length principle.

(3)

Provisions on types of additional documents and/or information referred to in paragraph (2) and procedures for the management are regulated in a Ministerial Regulation.

 

 

 

 

(1)

Individual Taxpayers conducting business or independent personal services and corporate Taxpayers in Indonesia must maintain bookkeeping.

(2)

Excluded from the obligation to maintain bookkeeping referred to in paragraph (1), but must maintain recording are:

 

a.

individual Taxpayers conducting business or independent personal services that pursuant to statutory provisions in the field of taxation are permitted to calculate net income using deemed profit;

 

b.

individual Taxpayers not conducting business or independent personal services; and

 

c.

individual Taxpayers that fulfil certain criteria.

(3)

Bookkeeping referred to in paragraph (1) must be maintained based on financial accounting standards applicable in Indonesia unless statutory laws and regulations in the field of taxation stipulate otherwise.

(4)

The determination of individual Taxpayers that fulfil certain criteria referred to in paragraph (2) subparagraph c must at least consider the Taxpayers’ gross turnover.

(5)

If Taxpayers do not fulfil the obligations of bookkeeping referred to in paragraph (1) and recording referred to in paragraph (2), the Taxpayers are subject to penalties pursuant to the provisions under the General Provisions and Tax Procedures Law.

(6)

Provisions on procedures for recording and certain criteria referred to in paragraph (2) and/or procedures for bookkeeping referred to in paragraph (3) are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

The Director General of Taxes is authorised to Audit Taxpayers to assess Taxpayers' compliance in fulfilling their tax obligations and for other purposes to implement statutory provisions in the field of taxation.

(2)

In conducting Audits referred to in paragraph (1), the Director General of Taxes:

 

a.

must notify the Taxpayers concerning the conduct of the Audits by submitting the Notice of Tax Audit; and

 

b.

may borrow or request books of account, records, documents, data, information and other information by submitting a letter of request.

(3)

Based on the Director General of Taxes’ request referred to in paragraph (2) subparagraph b, the audited Taxpayers must:

 

a.

present and/or lend books of accounts or records, the underlying documents and other documents related to income earned, business, independent personal services of the Taxpayers or taxable objects;

 

b.

grant access to premises or rooms deemed necessary and assist tax auditors in carrying out Audits; and/or

 

c.

provide data, information and other necessary information.

(4)

Books of accounts, records, documents, data, information and other information referred to in paragraph (3) must be fulfilled by the Taxpayers within a maximum period of 1 (one) month since the request is submitted.

 

 

 

 

If corporate or individual Taxpayers conducting business or independent personal services being audited do not fulfil the obligations referred to in Article 13 paragraph (3) and paragraph (4), thereby, the amount of taxable income cannot be calculated, taxable income may be calculated ex officio pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

The Director General of Taxes must submit Audit findings through the notice of tax Audit findings to the Taxpayers.

(2)

The Director General of Taxes must grant a right for the Taxpayers to be present in the Closing Conference.

(3)

If corporate or individual Taxpayers referred to in Article 14 provide the documents in the Closing Conference referred to in paragraph (2), the tax auditors may consider the documents in calculating tax payable.

(4)

The documents referred to in paragraph (3) are limited to:

 

a.

documents related to the calculation of business turnover or gross income in the context of calculating net income ex officio; and

 

b.

tax credit documents as a deductible expense of Income Tax.

 

 

 

 

(1)

Audit findings referred to in Article 15 paragraph (1) are outlined in a Tax Audit report.

(2)

Based on the Tax Audit report referred to in paragraph (1), for Audits to assess Taxpayers' compliance in fulfilling their tax obligations, a tax calculation memo is prepared.

(3)

The tax calculation memo referred to in paragraph (2) is followed up by the issuance of a Notice of Tax Assessment.

 

 

 

 

(1)

If during an Audit, an alleged tax crime is discovered, the Audit is suspended and followed up with a Preliminary Audit.

(2)

The suspended Audit referred to in paragraph (1) is continued if:

 

a.

Preliminary Audit is terminated because:

 

 

1.

no preliminary evidence of a tax crime is found;

 

 

2.

the incident is not a tax crime; or

 

 

3.

the individual Taxpayer subject to the Preliminary Audit deceases;

 

b.

Investigation is terminated:

 

 

1.

because there is insufficient evidence;

 

 

2.

because the incident is not a tax crime; or

 

 

3.

by law because the same case cannot be tried the second time (nebis in idem) or the suspect deceases;

 

 

or

 

c.

there is a court decision of a tax crime that has permanent legal force with a verdict of being released from all charges and a copy of the court decision has been received by the Director General of Taxes.

(3)

The suspended Audit referred to in paragraph (1) is terminated because:

 

a.

Preliminary Audit is terminated because the Taxpayer discloses the untruth of actions as regulated under Article 8 paragraph (3) of the General Provisions and Tax Procedures Law and the disclosure of the untruth of actions is in accordance with the actual situation;

 

b.

Investigation is terminated because:

 

 

1.

the Taxpayer discloses the untruth of actions as regulated under Article 44A of the General Provisions and Tax Procedures Law; or

 

 

2.

the Taxpayer or the suspect performs settlement as regulated under Article 44B paragraph (1) of the General Provisions and Tax Procedures Law;

 

c.

Preliminary Audit or Investigation is terminated because it has expired as regulated under Article 40 of the General Provisions and Tax Procedures Law; or

 

d.

there is a court decision of a tax crime that has permanent legal force other than the court decision referred to in paragraph (2) subparagraph c and a copy of the court decision has been received by the Director General of Taxes.

(4)

Excluded from the provisions referred to in paragraph (3), the suspended Audit referred to in paragraph (1) is continued if there remains tax overpayment based on the results of the Preliminary Audit or the results of the Investigation.

 

 

 

 

(1)

The Director General of Taxes may cancel a Notice of Tax Assessment issued based on Audits referred to in Article 13 carried out without undergoing the following procedures:

 

a.

submission of the notice of tax Audit findings; and/or

 

b.

the Closing Conference.

(2)

In the event of cancellation of the Notice of Tax Assessment referred to in paragraph (1), the Audit process is continued by carrying out the procedures that have not been implemented, in the form of:

 

a.

submission of the notice of tax Audit findings; and/or

 

b.

the Closing Conference.

(3)

If the cancelled Notice of Tax Assessment referred to in paragraph (1) is related to an application for tax refunds as regulated under Article 17B paragraph (1) of the General Provisions and Tax Procedures Law, the maximum period of 12 (twelve) months to issue the Notice of Tax Assessment is deferred, as of the issuance date of the cancelled Notice of Tax Assessment until the issuance of the Tax Assessment Cancellation Decision Letter.

 

 

 

 

 

(1)

Every Taxpayer must pay tax payable pursuant to statutory provisions in the field of taxation, without relying on the existence of a Notice of Tax Assessment.

(2)

The amount of tax payable according to the Tax Return filed by a Taxpayer is the amount of tax payable pursuant to statutory provisions in the field of taxation.

(3)

If the Director General of Taxes obtains proof that the amount of tax payable according to the Tax Return referred to in paragraph (2) is incorrect, the Director General of Taxes determines the amount of tax payable.

 

 

 

 

The Director General of Taxes may issue a Notice of Tax Underpayment Assessment within a period of 5 (five) years after the time taxes become payable or the end of a Taxable Period, a Fraction of a Tax Year or Tax Year after an Audit is conducted if:

a.

there are unpaid or underpaid taxes;

b.

Tax Returns are not filed within the period regulated under Article 3 paragraph (3) of the General Provisions and Tax Procedures Law and after being reprimanded in writing, the Tax Returns are not filed within the time specified in the written reprimand as regulated under Article 3 paragraph (5a) of the General Provisions and Tax Procedures Law;

c.

Value Added Tax and Sales Tax on Luxury Goods should not have otherwise been carried forward over the tax overpayment or should not have been subject to a 0% (zero per cent) rate;

d.

the obligations regulated under Article 28 or Article 29 of the General Provisions and Tax Procedures Law have not been fulfilled, thereby, the amount of tax payable cannot be determined;

e.

for the Taxpayer, a Taxpayer Identification Number is issued and/or registered ex officio as a Taxable Personas regulated under Article 2 paragraph (4a) of the General Provisions and Tax Procedures Law; or

f.

a Taxable Persondoes not supply Taxable Goods and/or Taxable Services and/or export Taxable Goods and/or Taxable Services and has been given refunds of Input VAT or has credited Input VAT as regulated under Article 9 paragraph (6e) of the Value Added Tax Law.

 

 

 

 

(1)

The Director General of Taxes may issue a Notice of Additional Tax Underpayment Assessment based on repeated Audit findings of:

 

a.

new data resulting in an increase in the amount of tax payable, including previously undisclosed data; or

 

b.

voluntary written information from the Taxpayer as regulated under Article 15 paragraph (3) of the General Provisions and Tax Procedures Law.

(2)

Notice of Additional Tax Underpayment Assessment based on repeated Audit findings referred to in paragraph (1) is issued within a period of 5 (five) years after the tax becomes payable or the end of a Taxable Period, a Fraction of a Tax Year or Tax Year.

 

 

 

 

The amount of taxes that are unpaid or underpaid in the Notice of Additional Tax Underpayment Assessment referred to in Article 21 paragraph (1) subparagraph a is added with an administrative penalty in the form of a 100% (one hundred per cent) surcharge of the amount of taxes that are unpaid or underpaid.

 

 

 

 

The Director General of Taxes issues a Notice of Nil Tax Assessment based on Audit findings of a Tax Return if the amount of tax credits or the amount of paid taxes is equal to the amount of tax payable or tax not payable and there is no tax credit or there is no tax payment

 

 

 

 

(1)

The Director General of Taxes issues a Notice of Tax Overpayment Assessment based on:

 

a.

Audit findings of the Tax Return if the amount of tax credits or the amount of paid taxes is greater than the amount of tax payable as regulated under Article 17 paragraph (1) of the General Provisions and Tax Procedures Law;

 

b.

examination results of the correctness of tax payment upon the Taxpayers’ applications in the event of a tax overpayment which should not have otherwise been payable as regulated under Article 17 paragraph (2) of the General Provisions and Tax Procedures Law; or

 

c.

Audit findings of the application for tax refunds if the amount of tax credits or the amount of paid taxes is greater than the amount of tax payable as regulated under Article 17B of the General Provisions and Tax Procedures Law.

(2)

The additional Notice of Tax Overpayment Assessment referred to in paragraph (1) may continue to be issued if there is new data, including previously undisclosed data, that overpaid taxes are greater than the tax overpayment that has been assessed.

 

 

 

 

(1)

Examination results referred to in Article 24 paragraph (1) subparagraph b, are outlined in an examination result report.

(2)

Based on the examination result report referred to in paragraph (1), a tax calculation memo is prepared.

(3)

Tax calculation memo referred to in paragraph (2) is followed up with the issuance of a Notice of Tax Overpayment Assessment, in the event of tax overpayment which should not have otherwise been payable.

 

 

 

 

Further provisions on procedures for the issuance of Notices of Tax Assessment referred to in Article 24 are regulated in a Ministerial Regulation.

 

 

 

 

(1)

If data and/or information is obtained showing the existence of tax obligations that have not been fulfilled by Taxpayers for a Taxable Period, a Fraction of a Tax Year or Tax Year before the Taxpayers are given or issued Taxpayer Identification Numbers and/or registered as Taxable Persons for VAT Purposes, the Director General of Taxes may issue a Notice of Tax Assessment referred to in Article 20, Article 21, Article 23 and Article 24 and/or a Notice of Tax Collection.

(2)

If after the Taxpayer Identification Number deregistration or Taxable Personsderegistration, data and/or information is obtained showing the existence of tax obligations that have not been fulfilled by Taxpayers for a Taxable Period, a Fraction of a Tax Year or Tax Year before and/or after the Taxpayer Identification Number deregistration or Taxable Personsderegistration, the Director General of Taxes may issue a Notice of Tax Assessment referred to in Article 20, Article 21, Article 23 and Article 24 and/or Notice of Tax Collection.

(3)

Notice of Tax Assessment and/or Notice of Tax Collection referred to in paragraph (1) and/or paragraph (2) are issued within a period of 5 (five) years after the tax becomes payable or the end of a Taxable Period, a Fraction of a Tax Year or Tax Year.

(4)

Provisions on procedures for the issuance of the Notice of Tax Assessment and/or Notice of Tax Collection referred to in paragraph (1) and paragraph (2) are regulated in a Ministerial Regulation.

 

 

 

 

(1)

The Director General of Taxes issues a Preliminary Tax Refund Decision Letter based on:

 

a.

examination results of the correctness of tax payment upon the Taxpayers’ applications as regulated under Article 17C paragraph (1) of the General Provisions and Tax Procedures Law;

 

b.

examination results of the correctness of tax payment upon the Taxpayers’ applications as regulated under Article 17D paragraph (1) of the General Provisions and Tax Procedures Law; or

 

c.

examination results of the correctness of tax payment upon the Taxpayers’ applications as regulated under Article 9 paragraph (4c) of the Value Added Tax Law.

(2)

The Preliminary Tax Refund Decision Letter referred to in paragraph (1) is issued no later than:

 

a.

3 (three) months since the application is completely received for Income Tax; or

 

b.

1 (one) month since the application is completely received for Value Added Tax.

 

 

 

 

(1)

Upon Taxpayers’ application, tax overpayment regulated under Article 9 paragraph (4c) of the Value Added Tax Law is refunded, provided that if the Taxpayers have tax liabilities, it is immediately taken into account to settle the tax liabilities as regulated under Article 11 paragraph (1) of the General Provisions and Tax Procedures Law.

(2)

Tax refunds referred to in paragraph (1) are carried out no later than 1 (one) month after the issuance of the Preliminary Tax Refund Decision Letter referred to in Article 28 paragraph (1) subparagraph c.

 

 

 

 

(1)

Taxpayers that have been determined as Taxpayers with certain criteria as regulated under Article 17C paragraph (3) of the General Provisions and Tax Procedures Law are subject to the deregistration as Taxpayers with certain criteria if the Taxpayers:

 

a.

are late in filing the Annual Tax Return;

 

b.

are late in filing Periodic Tax Returns of a certain type of tax for 2 (two) consecutive Taxable Periods;

 

c.

are late in filing Periodic Tax Returns of a certain type of tax for 3 (three) Taxable Periods in 1 (one) calendar year;

 

d.

submit financial statements in a Tax Year after being determined as Taxpayers with certain criteria that are not audited by public accountants or government financial supervisory institutions;

 

e.

submit financial statements in a Tax Year after being determined as Taxpayers with certain criteria that are audited by public accountants or government financial supervisory institutions but obtain an opinion other than unqualified opinion; or

 

f.

are subject to a public Preliminary Audit or Investigation.

(2)

Procedures for the deregistration as Taxpayers with certain criteria are implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

 

(1)

Objections against the Notice of Tax Assessment or withholding tax or collection as regulated under Article 25 paragraph (1) of the General Provisions and Tax Procedures Law shall be filed within a period of 3 (three) months from the date:

 

a.

the Notice of Tax Assessment is sent; or

 

b.

the date of withholding tax or collection,

 

unless the Taxpayers can demonstrate that the period cannot be fulfilled due to circumstances beyond their control.

(2)

Circumstances beyond the Taxpayers’ control referred to in paragraph (1) include:

 

a.

natural disasters;

 

b.

non-natural disasters;

 

c.

social disasters;

 

d.

ex officio issuance a Amendment Decision Letter resulting a change in the amount of outstanding tax or tax overpayment stated in the Notice of Tax Assessment; or

 

e.

other situations determined by the Director General of Taxes.

(3)

In the event of ex officio issuance of Amendment Decision Letter referred to in paragraph (2) subparagraph d and the Taxpayers have not filed an objection against the Notice of Tax Assessment, the Taxpayers may continue to file an objection against the said Notice of Tax Assessment within a maximum period of 3 (three) months since the date the Amendment Decision Letter is sent.

 

 

 

 

(1)

Taxpayers may only file an objection to the Director General of Taxes against the:

 

a.

Notice of Tax Underpayment Assessment;

 

b.

Notice of Additional Tax Underpayment Assessment;

 

c.

Notice of Nil Tax Assessment;

 

d.

Notice of Tax Overpayment Assessment; or

 

e.

withholding tax or collection by a third party pursuant to statutory provisions in the field of taxation

(2)

Taxpayers filing an objection referred to in paragraph (1) cannot apply for:

 

a.

relief or nullification of administrative penalties in the form of interest, fines and surcharges payable pursuant to statutory provisions in the field of taxation;

 

b.

relief or cancellation of incorrect Notice of Tax Assessment; or

 

c.

cancellation of Notice of Tax Assessment of Audit findings carried out without:

 

 

1.

the submission of the notice of tax Audit findings; or

 

 

2.

the Closing Conference with the Taxpayers.

(3)

The Taxpayers referred to in paragraph (1) may revoke the objection filed to the Director General of Taxes prior to the date of receipt of the summons by the Taxpayers.

(4)

Taxpayers revoking the objection that has been filed to the Director General of Taxes referred to in paragraph (3) cannot apply for the relief or cancellation of the incorrect Notice of Tax Assessment.

(5)

Taxpayers revoking the objection that has been filed to the Director General of Taxes referred to in paragraph (4) may continue to apply for the relief or nullification of administrative penalties.

(6)

Procedures for the revocation of filed objections are implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

The Director General of Taxes must settle objections filed by Taxpayers within a period of no longer than 12 (twelve) months as regulated under Article 26 paragraph (1) of the General Provisions and Tax Procedures Law.

(2)

The maximum period of 12 (twelve) months referred to in paragraph (1) is calculated from the date the objection letter is received by the Director General of Taxes until the date the Objection Decision Letter is issued.

 

 

 

 

(1)

If a Taxpayer’s objection is rejected or partially granted, the Taxpayer shall be subject to an administrative penalty in the form of a 30% (thirty per cent) fine of the amount of taxes as specified by the objection decision subtracted by the amount of taxes paid before the objection is filed as regulated under Article 25 paragraph (9) of the General Provisions and Tax Procedures Law.

(2)

The amount of taxes paid before the objection is filed referred to in paragraph (1) includes the payment of the agreed or disagreed amount in the Closing Conference.

(3)

The administrative penalty in the form of a 30% (thirty per cent) fine referred to in paragraph (1) is also imposed on the Taxpayer if the objection decision on the objection filed by the Taxpayer increases the amount of outstanding tax.

(4)

If a Taxpayer revokes the objection referred to in Article 32 paragraph (3) or the objection is not considered by the Director General of Taxes because it does not fulfil the requirements for filing an objection as regulated under Article 25 paragraph (1), paragraph (2), paragraph (3) or paragraph (3a) of the General Provisions and Tax Procedures Law, the Taxpayer is deemed not to have filed an objection.

(5)

If a Taxpayer is deemed not to have filed an objection referred to in paragraph (4), the outstanding tax in the Notice of Tax Underpayment Assessment or Notice of Additional Tax Underpayment Assessment not agreed upon in the Closing Conference becomes a tax liability from the issuance date of the Notice of Tax Assessment.

 

 

 

 

(1)

Taxpayers shall be subject to an administrative penalty in the form of a 60% (sixty per cent) fine of the amount of taxes stated in the Appeal Decision subtracted by the amount of paid taxes before the objection is filed as regulated under Article 27 paragraph (5d) of the General Provisions and Tax Procedures Law if the Appeal Decision:

 

a.

rejects;

 

b.

partially grants;

 

c.

increases the amount of tax payable; or

 

d.

amends errors in writing and/or miscalculation that increases the amount of outstanding tax.

(2)

If the Appeal Decision is in the form of unacceptable, the outstanding tax based on the Objection Decision Letter becomes a tax liability from the issuance date of the Objection Decision Letter.

(3)

The amount of outstanding tax based on the Objection Decision Letter referred to in paragraph (2) is added with an administrative penalty in the form of a 30% (thirty per cent) fine of the amount of taxes as specified in the Objection Decision Letter subtracted by the amount of taxes paid before the objection is filed referred to in Article 34 paragraph (1).

 

 

 

 

(1)

Taxpayers are subject to an administrative penalty in the form of a 60% (sixty per cent) fine of the total taxes based on the Civil Review Decision subtracted by the taxes paid before the objection is filed as regulated under Article 27 paragraph (5f) of the General Provisions and Tax Procedures Law if the Civil Review Decision results in an increase in the amount of outstanding tax.

(2)

For the administrative penalty referred to in paragraph (1), a Notice of Tax Collection is issued no later than 2 (two) years from the date the Civil Review Decision is received by the Director General of Taxes.

 

 

 

 

 

(1)

Upon Taxpayers’ applications or ex officio, the Director General of Taxes may amend:

 

a.

Notice of Tax Assessment;

 

b.

Notice of Tax Collection;

 

c.

Amendment Decision Letter;

 

d.

Objection Decision Letter;

 

e.

Administrative Penalty Relief Decision Letter;

 

f.

Administrative Penalty Nullification Decision Letter;

 

g.

Tax Assessment Relief Decision Letter;

 

h.

Tax Assessment Cancellation Decision Letter;

 

i.

Preliminary Tax Refund Decision Letter;

 

j.

Interest Compensation Decision Letter;

 

k.

Notice of Tax Due;

 

l.

Notice of Land and Building Tax Assessment;

 

m.

Notice of Land and Building Tax Collection;

 

n.

Land and Building Tax relief decision letter;

 

o.

relief of Land and Building Tax administrative penalties decision letter; or

 

p.

Mutual Agreement Decision Letter,

 

the issuance of which contains typos, miscalculation and/or misapplication of certain statutory laws and regulations in the field of taxation.

(2)

The miscalculation referred to in paragraph (1) includes:

 

a.

errors from the addition and/or subtraction and/or multiplication and/or division of a figure; or

 

b.

miscalculation due to the issuance of a Notice of Tax Assessment, Notice of Tax Collection, decision letter or taxation-related decisions.

(3)

In the event of errors in Input VAT crediting in a decree or notice of assessment referred to in paragraph (1), the error may only be amended if there is a difference in the amount of Input VAT constituting a tax credit and the Input VAT does not contain a dispute between the tax authorities and the Taxpayer.

(4)

The Director General of Taxes within a maximum period of 6 (six) months as of the date the application letter for the amendment is received, must decide on the application for amendment submitted by the Taxpayers referred to in paragraph (1).

(5)

Further provisions on procedures for amendment are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

The Director General of Taxes ex officio or upon Taxpayers’ applications may:

 

a.

reduce or nullify administrative penalties in the form of interest, fines and surcharges payable pursuant to statutory provisions in the field of taxation if the penalties are imposed because of the Taxpayer’s negligence or not because of their fault;

 

b.

reduce or cancel an incorrect Notice of Tax Assessment;

 

c.

reduce or cancel an incorrect Notice of Tax Collection as regulated under Article 14 of the General Provisions and Tax Procedures Law; or

 

d.

cancel a Notice of Tax Assessment from Audit findings carried out without:

 

 

1.

the submission of the notice of tax Audit findings; or

 

 

2.

the Closing Conference with the Taxpayer.

(2)

The application referred to in paragraph (1) subparagraph a, subparagraph b and subparagraph c may only be submitted by Taxpayers a maximum of 2 (two) times.

(3)

The application referred to in paragraph (1) subparagraph d may only be submitted by Taxpayers a maximum of 1 (one) time.

(4)

Taxpayers may apply for the relief or cancellation of the Notice of Tax Assessment if:

 

a.

the Taxpayers do not file an objection against the Notice of Tax Assessment; or

 

b.

the Taxpayers file an objection, but the objection is not considered by the Director General of Taxes because it does not fulfil the requirements.

(5)

The application for the relief or cancellation of incorrect Notice of Tax Assessment referred to in paragraph (1) subparagraph b cannot be submitted if the Taxpayers revoke the objection that has been filed to the Director General of Taxes referred to in Article 32 paragraph (3).

(6)

Upon the completion of the application for the relief or cancellation of the incorrect Notice of Tax Assessment referred to in paragraph (1) subparagraph b, the Director General of Taxes may consider the books of accounts, records or documents provided in the completion process of the application for the relief or cancellation of incorrect Notice of Tax Assessment.

(7)

The Director General of Taxes within a maximum period of 6 (six) months from the date the application referred to in paragraph (1) is received, must decide on the submitted application.

(8)

If the period referred to in paragraph (7) has elapsed but the Director General of Taxes does not decide, the Taxpayer’s application referred to in paragraph (1) is deemed granted.

(9)

Procedures for the relief, nullification and cancellation referred to in paragraph (1) are implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

Taxpayers subject to administrative penalties pursuant to statutory provisions in the field of taxation may apply for the relief or nullification of administrative penalties as regulated under Article 36 paragraph (1) subparagraph a of the General Provisions and Tax Procedures Law.

(2)

If the application regulated in paragraph (1) is submitted for an administrative penalty in the form of interest as regulated under Article 8 paragraph (2), Article 8 paragraph (2a), Article 9 paragraph (2a), Article 9 paragraph (2b) and Article 19 paragraph (1) of the General Provisions and Tax Procedures Law imposed exceeding the period of 24 (twenty-four) months, for the said application, relief or nullification of administrative penalty may be given, thereby, the amount of the administrative penalty is imposed for a maximum period of 24 (twenty-four) months.

(3)

The Director General of Taxes ex officio reduces or cancels a Notice of Tax Collection issued as a result of the issuance of the Notice of Tax Assessment against which an objection is filed, the Mutual Agreement Procedure, appeal, civil review or relief or cancellation of the Notice of Tax Assessment and an Objection Decision Letter, Mutual Agreement Decision Letter, Appeal Decision, Civil Review Decision, Tax Assessment Relief Decision Letter or Tax Assessment Cancellation Decision Letter has been issued resulting in a relief in the amount of tax payable.

 

 

 

 

 

(1)

If a decision issued by the Director General of Taxes in implementing statutory laws and regulations in the field of taxation is found to be damaged, illegible, lost or can no longer be found due to circumstances beyond control, the Director General of Taxes ex officio reissues a decision as a substitute for the decision that is damaged, illegible, lost or can no longer be found.

(2)

Decisions reissued by the Director General of Taxes referred to in paragraph (1) have the same legal standing as decisions issued by the Director General of Taxes.

(3)

Provisions on procedures for the reissuance of decisions referred to in paragraph (1) are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

The Director General of Taxes issues a Notice of Tax Assessment according to the procedures or mechanisms regulated in the statutory provisions in the field of taxation.

(2)

In the event of a Lawsuit Decision on the Notice of Tax Assessment referred to in paragraph (1) of which the issuance is not in accordance with the procedures or mechanisms for issuance, the Director General of Taxes after receiving the Lawsuit Decision follows up the Lawsuit Decision by reissuing the Notice of Tax Assessment according to the procedures or mechanisms regulated in statutory provisions in the field of taxation.

(3)

If a Notice of Tax Assessment reissued as a result of the Lawsuit Decision referred to in paragraph (2) is related to the application for tax refunds as regulated under Article 17B paragraph (1) of the General Provisions and Tax Procedures Law, the maximum period of 12 (twelve) months for the Director General of Taxes to issue a Notice of Tax Assessment is deferred, from the issuance date of the Notice of Tax Assessment against which the objection is filed until the Lawsuit Decision is received by the Director General of Taxes.

 

 

 

 

(1)

The Director General of Taxes issues an Objection Decision Letter according to the procedures or mechanisms regulated under statutory provisions in the field of taxation.

(2)

In the event of a Lawsuit Decision on the Objection Decision Letter referred to in paragraph (1) of which the issuance is not in accordance with the procedures or mechanisms for issuance, the Director General of Taxes after receiving the Lawsuit Decision follows up the Lawsuit Decision by reissuing the Objection Decision Letter according to the procedures or mechanisms regulated under statutory provisions in the field of taxation.

(3)

In the event of a Lawsuit Decision on a letter from the Director General of Taxes stating that a Taxpayer’s objection is not considered as regulated under Article 25 paragraph (4) of the General Provisions and Tax Procedures Law, a maximum period of 12 (twelve) months as regulated under Article 26 paragraph (1) of the General Provisions and Tax Procedures Law is deferred, from the date the letter is sent from the Director General of Taxes to the Taxpayer until the Tax Court Lawsuit Decision is received by the Director General of Taxes.

 

 

 

 

 

(1)

The Director General of Taxes issues a letter of implementation of the Appeal Decision after receiving the Appeal Decision.

(2)

The Director General of Taxes issues a letter of implementation of the Civil Review Decision after receiving the Civil Review Decision.

(3)

The Director General of Taxes issues a letter of implementation of the Lawsuit Decision after receiving the Lawsuit Decision.

 

 

 

 

 

(1)

Taxpayers are granted interest compensation if an objection, appeal or civil review is partially or fully granted, thereby, resulting in a tax overpayment.

(2)

The interest compensation referred to in paragraph (1) shall be given for tax overpayment at a maximum of the overpayment amount agreed by the Taxpayer in the Closing Conference on the Tax Return stating the overpayment for which a Notice of Tax Assessment has been issued.

(3)

The overpayment amount agreed by the Taxpayer in the Closing Conference referred to in paragraph (2) is the overpayment account according to the Taxpayer notified by the Taxpayer in the Closing Conference.

(4)

The Tax Return stating the overpayment referred to in paragraph (2) is a Tax Return that states overpayment with an application for tax refunds.

(5)

Interest compensation referred to in paragraph (1) is granted:

 

a.

based on the monthly interest rate stipulated by the Minister based on the reference interest rate divided by 12 (twelve); and

 

b.

for a maximum of 24 (twenty-four) months and a fraction of a month is treated as 1 (one) full month.

(6)

The monthly interest rate referred to in paragraph (5) used as the calculation basis for the interest compensation is the monthly interest rate applicable on the date the calculation of interest compensation commences.

(7)

The interest compensation referred to in paragraph (1), is calculated from the issuance date of the Notice of Tax Assessment until the issuance date of the Objection Decision Letter, Appeal Decision or Civil Review Decision.

(8)

To the granting of interest compensation referred to in paragraph (1), the following provisions apply:

 

a.

if the Taxpayer files an objection, interest compensation is given if, against an Objection Decision Letter, an appeal is not filed to the Tax Court;

 

b.

if the Taxpayer files an appeal, interest compensation is given if the Appeal Decision has been received by the Director General of Taxes from the Tax Court; or

 

c.

if the Taxpayer files a Civil Review, interest compensation given due to the issuance of the Civil Review Decision is given if the Civil Review Decision has been received by the Director General of Taxes from the Supreme Court.

(9)

Procedures for the granting of interest compensation are implemented pursuant to statutory provisions in the field of taxation

 

 

 

 

 

(1)

Tax base in the form of:

 

a.

Notice of Tax Collection, Notice of Tax Underpayment Assessment as well as Notice of Additional Tax Underpayment Assessment and Amendment Decision Letter, Mutual Agreement Decision Letter, Objection Decision Letter, Appeal Decision as well as Civil Review Decision, resulting in an increase in the amount of outstanding tax; and/or

 

b.

tax claim as regulated under Article 20A paragraph (8) of the General Provisions and Tax Procedures Law, if there is a request for tax collection assistance from a tax treaty partner.

(2)

Included in the increase in the amount of outstanding tax referred to in paragraph (1) subparagraph a are taxes that should not otherwise be refunded.

(3)

The tax base referred to in paragraph (1) subparagraph a and paragraph (2) must be settled within a period of 1 (one) month from the issuance date.

 

 

 

 

If for the tax base referred to in Article 45 paragraph (1) subparagraph a and paragraph (2), the deferral or installment is granted, the period of the right to a writ of seizure and sale of 5 (five) years is calculated from the due date of the deferral or the due date of the last instalment as regulated under Article 21 paragraph (5) subparagraph b of the General Provisions and Tax Procedures Law.

 

 

 

 

(1)

If a Taxpayer files an objection and does not file an appeal, the amount of tax that is not agreed upon by the Taxpayer in the Closing Conference and has not been paid when the objection is filed shall be settled no later than 1 (one) month from the issuance date of the Objection Decision Letter taking into account the amount of tax based on the Objection Decision Letter.

(2)

If a Taxpayer files an appeal, the amount of tax that is not agreed upon by the Taxpayer in the Closing Conference and has not been paid when the objection is filed shall be settled no later than 1 (one) month from the issuance date of the Appeal Decision taking into account the amount of tax based on the Appeal Decision.

(3)

If the Taxpayer entirely agrees to the outstanding tax in the Closing Conference, the outstanding tax shall be settled no later than 1 (one) month from the issuance date of the Notice of Tax Assessment referred to in Article 9 paragraph (3) of the General Provisions and Tax Procedures Law.

(4)

If small-scale business Taxpayers and Taxpayers in certain regions entirely agree to the outstanding tax in the Closing Conference, the amount of outstanding tax shall be settled no later than 2 (two) months from the issuance date of the Notice of Tax Assessment as regulated under Article 9 paragraph (3a) of the General Provisions and Tax Procedures Law.

 

 

 

 

(1)

If a Taxpayer files an objection, the amount of tax that is not agreed upon in the Closing Conference is not a tax liability until the issuance of the Objection Decision Letter.

(2)

If a Taxpayer files an appeal, the amount of tax that is not agreed upon in the Closing Conference is not included as a tax liability until the issuance of the Appeal Decision.

(3)

The amount of tax that is not agreed upon referred to in paragraph (1) and paragraph (2) is not set off against the tax overpayment as regulated under Article 11 paragraph (1) and paragraph (1a) of the General Provisions and Tax Procedures Law.

(4)

The provisions referred to in paragraph (1), paragraph (2) and paragraph (3) also apply to administrative penalties as regulated under Article 14 paragraph (4) of the General Provisions and Tax Procedures Law in the Notice of Tax Collection in respect of the amount of tax in the Notice of Tax Assessment that is not agreed upon in the Closing Conference.

 

 

 

 

(1)

If the amount of outstanding tax or tax liability is not settled within the period referred to in Article 45 paragraph (3) and Article 47, a Reprimand Letter is issued.

(2)

The Reprimand Letter referred to in paragraph (1) is submitted after 7 (seven) days from the time the payment is due referred to in Article 45 paragraph (3) and Article 47.

(3)

The Reprimand Letter referred to in paragraph (1) is submitted after 7 (seven) days from the time a tax claim is received from the tax treaty partner referred to in Article 45 paragraph (1) subparagraph b.

(4)

If a Taxpayer does not agree to part or all of the amount of outstanding tax in the Closing Conference and the Taxpayer does not file an objection, the Reprimand Letter referred to in paragraph (1) is submitted after 7 (seven) days from the time the filing of the objection is due.

(5)

If a Taxpayer does not agree to part or all of the amount of outstanding tax in the Closing Conference and the Taxpayer does not file an appeal against the objection decision, the Reprimand Letter referred to in paragraph (1) is submitted after 7 (seven) days from the time the filing deadline of the appeal is due.

(6)

If a Taxpayer does not agree to part or all of the amount of outstanding tax in the Closing Conference and the Taxpayer files an appeal against the objection decision, the Reprimand Letter referred to in paragraph (1) is submitted after 7 (seven) days from the time the settlement of outstanding tax is due based on the Appeal Decision.

 

 

 

 

Further provisions on procedures for the implementation of tax collection of the amount of outstanding tax are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

Taxpayers may appoint a attorney using a special attorney to exercise rights and fulfil obligations pursuant to statutory provisions in the field of taxation.

(2)

The attorney referred to in paragraph (1) includes:

 

a.

tax consultants;

 

b.

other parties; or

 

c.

relatives.

(3)

An appointed attorney referred to in paragraph (1) must possess certain competencies in the taxation aspect, except for relatives.

(4)

Relatives referred to in paragraph (2) subparagraph c consist of:

 

a.

husband;

 

b.

wife; or

 

c.

relatives by blood or marriage up to the second direct lineage.

 

 

 

 

(1)

The attorney to exercise tax rights and fulfil tax obligations is in accordance with the special attorney referred to in Article 51 paragraph (1).

(2)

In exercising tax rights and fulfilling tax obligations as a attorney, a attorney must comply with statutory provisions in the field of taxation.

(3)

The attorney cannot exercise the Taxpayers’ rights and obligations empowered to the attorney if in carrying out their tax rights and fulfilling tax obligations:

 

a.

obstruct the implementation of statutory tax laws and regulations; or

 

b.

sentenced for committing a tax crime or other crimes.

 

 

 

 

The Minister may regulate the guidance, development and/or supervision of tax consultants and other parties acting as Taxpayers’ attorney referred to in Article 51 paragraph (2) subparagraph a and subparagraph b for the exercise of tax rights and fulfilment of tax obligations of Taxpayers pursuant to statutory provisions in the field of taxation.

 

 

(1)

Any officials and professionals shall be prohibited to disclose any information known or provided to them by a Taxpayer in the course of their position or duties.

(2)

For the interest of the state, in the context of Investigations, prosecutions or co-operation with state institutions, government agencies, legal bodies established through Laws or Government Regulations or other parties, the Minister is authorised to issue a written permit to the officials and/or professionals referred to in paragraph (1) to provide information and present written evidence from or concerning a Taxpayer to certain appointed parties in the Minister’s written permit.

(3)

Certain appointed parties referred to in paragraph (2):

 

a.

may only request information and/or written evidence concerning the statement and/or written evidence listed in the Minister’s written permit;

 

b.

must maintain the confidentiality of all information and/or written evidence known or obtained from officials and/or experts; and

 

c.

may only utilise information and/or written evidence according to the purpose of the request for information and/or written evidence from or concerning a Taxpayer.

(4)

If the certain appointed parties referred to in paragraph (2) violate the provisions referred to in paragraph (3), the certain parties are subject to penalties pursuant to statutory provisions.

(5)

Officials and/or professionals that provide information and/or show written evidence from or concerning a Taxpayer in the context of exercising their duties pursuant to statutory provisions in the field of taxation, are excluded from the provisions referred to in paragraph (1) and paragraph (2).

(6)

Provisions on procedures for the granting of written permits to officials and/or professionals are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

The Director General of Taxes is authorised to implement Mutual Agreement Procedure to avoid or resolve issues arising in the application of a Tax Treaty.

(2)

Mutual Agreement Procedure referred to in paragraph (1) may be requested by:

 

a.

resident Taxpayers;

 

b.

the Director General of Taxes;

 

c.

the competent authority of a tax Treaty partner; or

 

d.

Indonesian citizens through the Director General of Taxes in respect of the discriminatory treatment in a tax Treaty partner  hat is contrary to provisions on non-discrimination,

 

according to the provisions and deadlines regulated under the Tax Treaty.

(3)

To determine whether or not the Mutual Agreement Procedure referred to in paragraph (1) may be implemented, the Director General of Taxes first examines the request for the implementation of the Mutual Agreement Procedure submitted by the parties referred to in paragraph (2) subparagraph a, subparagraph c or subparagraph d.

 

 

 

 

In respect of the implementation of the Mutual Agreement Procedure referred to in Article 55 paragraph (1) resulting in the agreement in the Mutual Agreement, the Director General of Taxes follows up the Mutual Agreement by issuing a Mutual Agreement Decision Letter provided that the Director General of Taxes has:

a.

received written notification from the competent authority of the tax Treaty partner that the Mutual Agreement may be implemented; and

b.

submitted the written notification to the competent authority of the tax Treaty partner that the Mutual Agreement may be implemented.

 

 

 

 

(1)

If the implementation of the Mutual Agreement Procedure referred to in Article 55 paragraph (1):

 

a.

results in Mutual Agreement before the Objection Decision Letter is issued; and

 

b.

the Mutual Agreement contains the agreement for the matter in dispute,

 

the Director General of Taxes follows up the agreement in the Mutual Agreement by issuing a Mutual Agreement Decision Letter after the receipt of the adjustment or revocation of the objection from the Taxpayer.

(2)

If the implementation of the Mutual Agreement Procedure referred to in Article 55 paragraph (1):

 

a.

results in Mutual Agreement before the Tax Assessment Relief Decision Letter or Tax Assessment Cancellation Decision Letter is issued; and

 

b.

the Mutual Agreement contains the agreement for the matter in dispute,

 

the Director General of Taxes follows up the agreement in the Mutual Agreement by issuing a Mutual Agreement Decision Letter after the receipt of the revocation of the application for relief or cancellation of the Notice of Tax Assessment from the Taxpayer.

(3)

If the implementation of the Mutual Agreement Procedure referred to in Article 55 paragraph (1):

 

a.

results in Mutual Agreement before the Appeal Decision is pronounced; and

 

b.

the Mutual Agreement contains the agreement for the matter in dispute,

 

the Director General of Taxes follows up the agreement in the Mutual Agreement by issuing a Mutual Agreement Decision Letter after the receipt of notification of the adjustment or revocation of the application for an appeal from the Taxpayer to the Tax Court.

(4)

If the implementation of the Mutual Agreement Procedure referred to in Article 55 paragraph (1):

 

a.

results in Mutual Agreement before the Civil Review Decision is issued; and

 

b.

the Mutual Agreement contains the agreement for the matter in dispute,

 

the Director General of Taxes follows up the agreement in the Mutual Agreement by issuing a Mutual Agreement Decision Letter after the receipt of notification of the adjustment or revocation of the application for a civil review from the Taxpayer to the Supreme Court.

(5)

If a Taxpayer files a lawsuit against:

 

a.

Tax Assessment Relief Decision Letter;

 

b.

Tax Assessment Cancellation Decision Letter; or

 

c.

Issuance of a Notice of Tax Assessment or Objection Decision Letter the issuance of which is not in accordance with the procedures or mechanisms regulated under statutory laws and regulations in the field of taxation,

 

in connection with the Mutual Agreement Procedure, the Director General of Taxes follows up the agreement in the Mutual Agreement by issuing a Mutual Agreement Decision Letter after the receipt of the notification of the revocation of the lawsuit from the Taxpayer to the Tax Court.

(6)

The provisions referred to in paragraph (1), paragraph (2), paragraph (3), paragraph (4) or paragraph (5) may be applied if the provisions referred to in Article 56 have been fulfilled.

 

 

 

 

(1)

If the Mutual Agreement Decision Letter results in a tax overpayment, the overpayment is refunded to the Taxpayers provided that if the Taxpayers have tax liabilities, the said overpayment is immediately taken into account to settle the tax liabilities.

(2)

The tax overpayment due to the issuance of the Mutual Agreement Decision Letter referred to in paragraph (1) shall be refunded to the Taxpayer without interest compensation.

(3)

If the implementation of the Mutual Agreement Procedure is not followed up with the issuance of a Mutual Agreement Decision Letter, Notice of Tax Assessment, Objection Decision Letter, Tax Assessment Relief Decision Letter, Tax Assessment Cancellation Decision Letter, Amendment Decision Letter, Appeal Decision or Civil Review Decision shall apply.

 

 

 

 

 

(1)

Based on information, data, reports and complaints, the Director General of Taxes is authorised to conduct a Preliminary Audit as regulated under Article 43A of the General Provisions and Tax Procedures Law.

(2)

Preliminary Audit referred to in paragraph (1) is conducted by Investigators receiving the Preliminary Audit Order.

(3)

Preliminary Audits have the same purpose and standing as Investigations as stipulated in the law stipulating the code of criminal procedures.

(4)

Preliminary Audit referred to in paragraph (1) is conducted in a restricted manner or public.

(5)

Restricted Preliminary Audit is conducted without notification to the Taxpayers.

(6)

Public Preliminary Audit is conducted with written notification to the Taxpayers.

(7)

In conducting Preliminary Audit, Investigators as Preliminary Auditors are authorised to:

 

a.

borrow and examine books of accounts or records, documents constituting the basis of bookkeeping or recording and other documents related to income earned, business, independent personal services of the Taxpayers or taxable objects;

 

b.

access and/or download electronically managed data, information and evidence;

 

c.

enter and examine premises or rooms, movable and/or immovable property suspected or reasonably suspected of being used to retain books of accounts or records, documents constituting the basis of bookkeeping or recording and other documents, money and/or goods that may provide hints about income earned, business, independent personal services of the Taxpayers or taxable objects;

 

d.

seal certain premises or rooms as well as movable property and/or immovable property;

 

e.

request necessary information and/or evidence from third parties that have a relationship with the Taxpayers subject to the Preliminary Audit through the Director General of Taxes as regulated under Article 35 paragraph (1) of the General Provisions and Tax Procedures Law;

 

f.

request information from related parties and outlined in the official report of inquiry; and

 

g.

conduct other necessary activities in the context of the Preliminary Audit.

(8)

Preliminary Audit is followed up with:

 

a.

Investigation if preliminary evidence of a tax crime is found and the Taxpayers:

 

 

1.

do not disclose the untruth of their actions as regulated under Article 8 paragraph (3) of the General Provisions and Tax Procedures Law; or

 

 

2.

disclose the untruth of their actions as regulated under Article 8 paragraph (3) of the General Provisions and Tax Procedures Law but not in accordance with the actual situation;

 

b.

termination of Preliminary Audit if:

 

 

1.

no preliminary evidence of a tax crime is found;

 

 

2.

the incident is not a tax crime;

 

 

3.

the individual Taxpayer subject to the Preliminary Audit deceases;

 

 

4.

Taxpayers have disclosed the untruth of their actions as regulated under Article 8 paragraph (3) of the General Provisions and Tax Procedures Law and the disclosure of the untruth of actions is in accordance with the actual situation; or

 

 

5.

expiration as regulated under Article 40 of the General Provisions and Tax Procedures Law.

(9)

Procedures for sealing referred to in paragraph (7) subparagraph d are implemented pursuant to statutory provisions in the field of taxation.

 

 

 

 

(1)

Investigators conduct Investigations as regulated under Article 44 of the General Provisions and Tax Procedures Law if a tax crime occurs and preliminary evidence is obtained.

(2)

Preliminary evidence referred to in paragraph (1) originates from the activities of:

 

a.

Preliminary Audits;

 

b.

handling of crimes that are immediately known; or

 

c.

the development of Investigation.

(3)

In conducting the Investigation referred to in paragraph (1), Investigators are authorised to summon witnesses or suspects for examination based on a valid summons.

(4)

The witness or suspect referred to in paragraph (3) must fulfil the summons based on a valid summons.

(5)

The summons for witnesses or suspects referred to in paragraph (3) shall be carried out pursuant to statutory provisions on the code of criminal procedures.

 

 

 

 

(1)

A tax crime suspect may be identified without prior examination as a witness if the person concerned has been legally summoned 2 (two) times and is absent without giving proper and reasonable reasons.

(2)

The identification as the suspect referred to in paragraph (1) is based on 2 (two) valid pieces of evidence.

(3)

Examination of a tax crime suspect is not carried out if the person concerned has been legally summoned 2 (two) times and is absent without giving proper and reasonable reasons.

(4)

If the suspect does not comply with the summons referred to in paragraph (3), the exercise of rights and fulfilment of obligations as a suspect cannot be carried out by a attorney or legal adviser.

(5)

If the suspect does not comply with the summons referred to in paragraph (3), Investigators undertake actions in the form of:

 

a.

announcing the summons in national and/or international media;

 

b.

proposing the suspect to be included in the wanted list; and

 

c.

requesting assistance from the competent authority to be recorded in the red notice.

(6)

If Investigation results are declared complete by the public prosecutor, the responsibility for the suspect and evidence from the Investigators to the public prosecutor may be transferred without the presence of the suspect if:

 

a.

the suspect has been legally summoned and is absent without giving proper and reasonable reasons; and

 

b.

Investigators have undertaken the actions referred to in paragraph (5).

(7)

In exercising the Investigation authority as regulated under Article 44 paragraph (2) of the General Provisions and Tax Procedures Law, Investigators may request assistance from other law enforcement officials, in the form of:

 

a.

technical support;

 

b.

tactical assistance;

 

c.

coercive assistance; and/or

 

d.

consulting assistance in the context of Investigation.

(8)

Other law enforcement officials referred to in paragraph (7) must provide assistance according to requests pursuant to statutory provisions.

 

 

 

 

(1)

In conducting an Investigation, the Minister is authorised to issue a travel ban.

(2)

The travel ban referred to in paragraph (1) includes the travel ban, extension of the travel ban and repeal of the travel ban.

(3)

The Minister may delegate the authority to issue the travel ban referred to in paragraph (1) to the Director General of Taxes for and on behalf of the Minister.

 

 

 

 

(1)

For state revenue purposes, upon a request from the Minister, the General Attorney may terminate an Investigation within a maximum period of 6 (six) months from the date of the request letter.

(2)

The request from the Minister referred to in paragraph (1) shall only be carried out after the Taxpayer or suspect has settled:

 

a.

losses to state revenues as regulated under Article 38 of the General Provisions and Tax Procedures Law plus an administrative penalty in the form of a fine of 1 (one) time the losses to state revenues;

 

b.

losses to state revenues as regulated under Article 39 of the General Provisions and Tax Procedures Law plus an administrative penalty in the form of a fine of 3 (three) times the losses to state revenues; or

 

c.

the amount of taxes in the tax invoice, collection receipt, withholding receipt and/or tax payment slip as regulated under Article 39A of the General Provisions and Tax Procedures Law plus an administrative penalty in the form of a fine of 4 (four) times the amount of taxes in the tax invoice, collection receipt, withholding receipt and/or tax payment slip.

(3)

The application of the administrative penalty in the form of a fine referred to in paragraph (2) is regulated as follows:

 

a.

if the Taxpayer or the suspect is alternatively punishable with more than 1 (one) criminal penalty, the highest administrative penalty will be applied; or

 

b.

if the Taxpayer or the suspect is cumulatively punishable with more than 1 (one) criminal penalty, administrative penalties will be applied cumulatively.

(4)

The settlement referred to in paragraph (2) is a recovery of losses to state revenues.

(5)

Losses to state revenues and/or the amount of taxes referred to in paragraph (2) are calculated pursuant to the provisions under Article 44B paragraph (2) of the General Provisions and Tax Procedures Law.

(6)

In submitting a request to terminate the Investigation referred to in paragraph (1), the Minister may delegate the authority to request the termination of the Investigation to an appointed official.

(7)

Based on the request to terminate the Investigation from the Minister or appointed official, the Attorney General may delegate the authority to terminate the Investigation referred to in paragraph (1) to the appointed official.

 

 

 

 

Further provisions on Investigation referred to in Article 60, Article 61 and Article 62 are regulated in a Ministerial Regulation.

 

 

 

 

(1)

If a criminal case has been transferred to the court, the defendant may continue to settle the losses to state revenues and/or the amount of taxes and the administrative penalties referred to in Article 63 paragraph (2) and paragraph (3).

(2)

The settlement referred to in paragraph (1) shall be a consideration for:

 

a.

prosecution without any sentence to imprisonment; and

 

b.

settlement to the losses to state revenues and/or the amount of taxes and the administrative penalties referred to in Article 63 paragraph (2) and paragraph (3) taken into account as the payment of losses to state revenues or the sentence of fine imposed on the defendant.

(3)

The settlement referred to in paragraph (1) is carried out after receiving the information on the losses to state revenue and/or the amount of taxes and the administrative penalties referred to in Article 63 paragraph (2) and paragraph (3) from the Director General of Taxes.

(4)

Losses to state revenue and/or the amount of taxes and the administrative penalties referred to in paragraph (3) are pursuant to the provisions under Article 44B paragraph (2a) of the General Provisions and Tax Procedures Law.

(5)

If the payment by the Taxpayer, suspect or defendant at the investigation stage up to the trial proceeding does not fulfil the amount referred to in Article 63 paragraph (2) and paragraph (3), the payment can be considered the payment of the sentence of fine.

(6)

The payment referred to in paragraph (2) or paragraph (5) is taken into account as the payment for losses to state revenues or the sentence of fine if the defendant first:

 

a.

applies for a statement of payment to the Director General of Taxes; and

 

b.

submits the certificate of payment issued by the Director General of Taxes referred to in subparagraph a to the public prosecutor.

 

 

 

 

 

(1)

Taxpayers may exercise tax rights and fulfil tax obligations electronically and use electronic signatures pursuant to statutory provisions on electronic information and transactions.

(2)

The electronic signatures referred to in paragraph (1) include certified electronic signatures and uncertified electronic signatures.

(3)

If the exercise of tax rights and fulfilment of tax obligations referred to in paragraph (1) use certified electronic signatures, the Taxpayers are given electronic certificates issued by electronic certification providers pursuant to statutory provisions on electronic information and transactions.

(4)

The electronic certification providers referred to in paragraph (3) are appointed by the Minister from the list of Indonesian electronic certification providers recognised by the ministry administering governmental affairs in the field of communication and informatics.

(5)

The Minister may cooperate with government agencies, institutions, associations and other parties to provide the facilities for the electronic exercise of tax rights and fulfilment of tax obligations and the use of electronic signatures referred to in paragraph (1) through an administrative system that is integrated with the system in Directorate General of Taxes.

(6)

Provisions on procedures for the electronic exercise of tax rights and fulfilment of tax obligations are regulated by a Ministerial Regulation.

 

 

 

 

(1)

The Director General of Taxes may issue decisions in the context of implementing statutory tax provisions in the electronic format.

(2)

If the issuance of a decision is processed through the Directorate General of Taxes system or a system that is integrated with the Directorate General of Taxes system and all requirements in the electronic system have been fulfilled, the system may issue decisions as the decisions of the Directorate General of Taxes or competent authority of the Directorate General of Taxes in the electronic format.

(3)

Decisions in the electronic format referred to in paragraph (1) and paragraph (2) shall be given certified electronic signatures and/or certified electronic seals pursuant to statutory provisions and have the same legal force as written decisions.

(4)

The date of postage or date of receipt related to the electronic exercise of tax rights and fulfilment of tax obligations is the date of electronic postage in the administrative system of the Directorate General of Taxes or an administrative system that is integrated with the administrative system of the Directorate General of Taxes.

(5)

The date of electronic postage or the date of electronic receipt referred to in paragraph (4) shall be carried out pursuant to statutory provisions in the field of electronic information and transactions.

(6)

Provisions on procedures for the issuance and postage of decisions in the electronic format referred to in paragraph (1) and paragraph (2) are regulated in a Ministerial Regulation.

 

 

 

 

 

(1)

An individual constituting a Resident and has fulfilled the subjective and objective requirements as a Taxpayer must register and be given a Taxpayer Identification Number using the National Identification Number.

(2)

The National Identification Number referred to in paragraph (1) uses Population Data administered at the ministry that administers home affairs.

(3)

The Minister who administers home affairs provides Population Data and User Feedback Data in the Population Database to the Minister to be integrated with the tax database.

(4)

The provision of Population Data referred to in paragraph (3) is in the form of the granting of access rights to Population Data pursuant to statutory provisions.

(5)

The provision of User Feedback Data referred to in paragraph (3) is regulated by a regulation of the minister administering home affairs.

(6)

The minister administering home affairs through the Director General of Population and Civil Registration grants access rights to Population Data referred to in paragraph (4) and User Feedback Data referred to in paragraph (5).

(7)

The Minister delegates the Director General of Taxes to receive and request Population Data and User Feedback Data referred to in paragraph (3).

 

 

 

 

 

(1)

Individuals or entities that fulfil the objective requirements referred to in Article 13 paragraph (1) of the Harmonisation of Tax Regulations Law and subjective requirements regulated under Article 13 paragraph (5) of the Harmonisation of Tax Regulations Law or Carbon Tax withholding agents are included in the definition of Taxpayers.

(2)

Carbon Tax is settled by:

 

a.

self-payment by Taxpayers; or

 

b.

collection by Carbon Tax withholding agents.

(3)

Taxpayers carrying out activities that generate carbon emissions must file the Annual Tax Return to report the calculation and/or payment of Carbon Tax.

(4)

Carbon Tax collecting agent Taxpayers referred to in paragraph (1) must file Periodic Tax Returns to report the calculation and/or payment of Carbon Tax.

(5)

Taxpayers referred to in paragraph (3) and paragraph (4) must complete Tax Returns pursuant to the provisions under Article 3 paragraph (1) of the General Provisions and Tax Procedures Law.

(6)

The filing deadline of the Tax Return referred to in paragraph (5) for:

 

a.

the Annual Tax Return is no later than 4 (four) months after the end of the calendar year; or

 

b.

Periodic Tax Returns is no later than 20 (twenty) days after the end of a Taxable Period.

(7)

If a Tax Return is not filed within the period referred to in paragraph (6), it is subject to an administrative penalty with the following provisions:

 

a.

amounting to the administrative penalty for the late filing of the Annual Income Tax Return of corporate Taxpayers for the Annual Tax Return referred to in paragraph (3); or

 

b.

amounting to the administrative penalty for the late filing of Periodic Value Added Tax Returns for Periodic Tax Returns referred to in paragraph (4),

 

pursuant to the provisions under Article 7 of the General Provisions and Tax Procedures Law.

(8)

Taxpayers carrying out activities that generate carbon emissions referred to in paragraph (3) with certain criteria are excluded from the obligation to file Tax Returns referred to in paragraph (5).

(9)

Further provisions on the appointment of Carbon Tax withholding agents referred to in paragraph (1) and certain criteria referred to in paragraph (8) are regulated in a Ministerial Regulation.

 

 

 

 

(1)

Taxpayers referred to in Article 69 paragraph (3) and paragraph (4), must maintain recording of activities that generate carbon emissions and/or sales of carbon-containing products, which are used as the basis to calculate the amount of Carbon Tax payable.

(2)

The recording referred to in paragraph (1) may be sourced from records, documents and/or data.

(3)

Records, documents and/or data referred to in paragraph (2), must be managed or retained pursuant to the provisions under Article 11 paragraph (1) or paragraph (2).

(4)

If a Taxpayer does not exercise the obligations referred to in paragraph (1) and paragraph (3), the Taxpayer is subject to penalties pursuant to statutory provisions on general provisions and tax procedures.

 

 

 

 

 

When this Government Regulation comes into force:

1.

for Notices of Tax Assessment issued since 29 October 2021 which contain administrative penalties in the form of interest as regulated under Article 13 paragraph (3b) of the General Provisions and Tax Procedures Law, the provisions apply if the calculation of the administrative penalties commences:

 

a.

before 29 October 2021, the imposition of the administrative penalties is calculated using the interest rate pursuant to the Ministerial Decree concerning the calculation of interest rates as the basis for calculating administrative penalties in the form of interest and the granting of interest compensation applicable from 29 October 2021 to 31 October 2021; or

 

b.

after 29 October 2021, the imposition of the administrative penalties is calculated using the interest rate pursuant to the Ministerial Decree concerning the calculation of interest rates as the basis for calculating administrative penalties in the form of interest and the granting of interest compensation applicable on the date the calculation of the penalties commences;

2.

for Notices of Tax Assessment issued since 29 October 2021 which contain administrative penalties in the form of surcharges as regulated under Article 13 paragraph (3) subparagraph c and subparagraph d of the General Provisions and Tax Procedures Law, administrative penalties are imposed pursuant to the General Provisions and Tax Procedures Law;

3.

the amount of unpaid or underpaid taxes arising since 29 October 2021 as a result of non-payment of the amount of unpaid or underpaid taxes in the approval decision letter to instal or defer tax payments as regulated under Article 9 paragraph (4) of the General Provisions and Tax Procedures Law, is collected by issuing a Notice of Tax Collection as regulated under Article 14 paragraph (1) subparagraph i of the General Provisions and Tax Procedures Law;

4.

for:

 

a.

Objection Decision Letters which reject, partially grant a Taxpayer’s application or increase the amount of outstanding tax;

 

b.

Appeal Decisions that reject, grant part of a Taxpayer’s application or increase the outstanding tax; and

 

c.

Civil Review Decisions that result in the increase in the amount of outstanding tax,

 

issued since 29 October 2021, administrative penalties are imposed pursuant to the General Provisions and Tax Procedures Law;

5.

for a request to terminate an Investigation submitted by a Taxpayer to the Minister as regulated under Article 44B of the General Provisions and Tax Procedures Law for which the request for information on losses to state revenues is submitted before 29 October 2021 and a decision to terminate the Investigation has not issued by the Attorney General:

 

a.

in respect of crimes regulated under Article 38 of the General Provisions and Tax Procedures Law, administrative penalties are imposed pursuant to the General Provisions and Tax Procedures Law;

 

b.

in respect of crimes regulated under Article 39 of the General Provisions and Tax Procedures Law, administrative penalties are imposed pursuant to the General Provisions and Tax Procedures Law; and

 

c.

in respect of crimes regulated under Article 39A of the General Provisions and Tax Procedures Law, administrative penalties are imposed pursuant to Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 11 of 2020 concerning Job Creation;

6.

Mutual Agreement Procedure implemented until 31 December 2011, is followed up pursuant to Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfillment of Tax Obligations;

7.

Decisions issued in the electronic format without being given certified electronic seals referred to in Article 67 before the certified electronic seals are available in the Directorate General of Taxes system remain valid and their validity is recognised insofar as can be proven as sourced from the electronic tax system; and

8.

Taxpayers’ attorney appointed pursuant to Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations remains valid until the enactment of implementing regulations pursuant to the provisions under Article 44E paragraph (2) subparagraph e of the General Provisions and Tax Procedures Law.

 

 

 

 

 

Provisions on the issuance of decisions in the electronic format provided with certified electronic signatures and/or certified electronic seals referred to in Article 67 must have been implemented no later than 5 (five) years since this Government Regulation comes into force.

 

 

 

 

When this Government Regulation comes into force, all statutory provisions constituting the implementing regulations of 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) are declared to remain valid, insofar as they do not contradict the provisions under this Government Regulation.

 

 

 

 

When this Government Regulation comes into force:

a.

Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations pursuant to Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 28 of 2007 (State Gazette of the Republic of Indonesia of 2011 Number 162, Supplement to the State Gazette of the Republic of Indonesia Number 5268); and

b.

Article 6 and Article 9 of Government Regulation Number 9 of 2021 concerning the Tax Treatment to Support the Ease of Doing Business (State Gazette of the Republic of Indonesia of 2021 Number 19, Supplement to the State Gazette of the Republic of Indonesia Number 6621),

are revoked and declared invalid.

 

 

 

 

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

 

 

 

 

For public cognisance, this Government shall be promulgated by placement in the State Gazette of the Republic of Indonesia.

 

 

 

 

Enacted in Jakarta
on 12 December 2022
PRESIDENT OF THE REPUBLIC OF INDONESIA,
signed
JOKO WIDODO

Promulgated in Jakarta
on 12 December 2022
MINISTER OF THE STATE SECRETARIAT OF THE REPUBLIC OF INDONESIA,
signed

PRATIKNO

STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2022 NUMBER 226

 

 

 

 

 

To increase sustainable economic growth and support the acceleration of economic recovery, Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations has been promulgated. With the promulgation of this Law, it is necessary to harmonise the affected provisions in the field of taxation, including provisions in the field of general provisions and tax procedures as regulated under Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations.

 

These provisions are aligned by replacing Government Regulation Number 74 of 2011 concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations. This has been implemented with the consideration of providing legal certainty, convenience, clarity for the public in understanding the provisions on taxation and supporting regulatory simplification. The ease of tax administration includes the electronic exercise of tax rights and fulfilment of tax obligations, the integration between the Population Database and the tax database and the exercise of Carbon Tax rights and fulfilment of Carbon Tax obligations.

 

The regulation under this Government Regulation in general aims to render greater trust and responsibility to Taxpayers in exercising their tax rights and fulfilling their tax obligations and the Government, in this case, the tax authorities, in providing services, counselling, guidance and supervising and enforcing tax law according to the dynamics of societal needs and legal developments.

 

Therefore, based on the above considerations and to implement the provisions under Article 44E paragraph (1) Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 7 of 2021 concerning the Harmonisation of Tax Regulations it is necessary to issue a Government Regulation concerning Procedures for the Exercise of Tax Rights and Fulfilment of Tax Obligations.

 

 

 

 

 

 

Article 1

Sufficiently clear.

Article 2

Paragraph (1)

“Subjective requirements” refer to requirements pursuant to the provisions on tax subjects.

 

“Objective requirements” refer to requirements for tax subjects that receive or accrue income or are required to perform withholding pursuant to the provisions under the Income Tax Law.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Residents who already have a National Identification Number are not automatically registered as Taxpayers prior to activating the National Identification Number.

Paragraph (4)

Example:

Mrs. Delima who has not registered by activating her National Identification Number as a Taxpayer Identification Number is married to Mr. Adi who has registered by activating his National Identification Number as a Taxpayer Identification Number. If Mrs. Delima exercises her tax rights and fulfils her tax obligations separately from her husband’s tax rights and obligations, Mrs. Delima must register by activating her National Identification Number as a Taxpayer Identification Number.

Paragraph (5)

Example:

Mrs. Brigita who has registered by activating her National Identification Number as a Taxpayer Identification Number is married to Mr. Erik who has registered by activating his National Identification Number as a Taxpayer Identification Number. If Mrs. Brigita exercises her tax rights and fulfils her tax obligations separately from her husband’s tax rights and obligations, Mrs. Brigita no longer needs to register herself by activating her National Identification Number as a Taxpayer Identification Number.

Paragraph (6)

In principle, the tax administration system in Indonesia construes a family as a single economic unit, thereby, within a family, there is only one Taxpayer Identification Number.

 

Therefore, for married women who are not taxed separately, the exercise of her tax rights and the fulfilment of her tax obligations shall be combined with the exercise of her husband's tax rights and the fulfilment of her husband's tax obligations as the head of the family using the husband’s Taxpayer Identification Number. If a married woman already has a Taxpayer Identification Number by activating the National Identification Number as a Taxpayer Identification Number before being married, the married woman must apply for a Taxpayer Identification Number deregistration, thereby, the National Identification Number is deactivated as a Taxpayer Identification Number on the grounds that the exercise of her tax rights and the fulfilment of her tax obligations are combined with the exercise of her husband’s tax rights and the fulfilment of her husband’s tax obligations.

 

Not included in the meaning of being separated are husband and wife who live separately, among others, because of duties, work or business.

 

Example:

A husband and wife are domiciled in Malang City. The husband works and lives in Jakarta, whereas the wife lives in Malang. Thus, the husband and wife are not included in the definition of being separated referred to in this paragraph.

Article 3

Sufficiently clear.

Article 4

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Example 1:

Individual Taxpayers that have deceased and leave no inheritance.

 

Example 2:

Taxpayers that have more than 1 (one) Taxpayer Identification Number.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Article 5

Sufficiently clear.

Article 6

Paragraph (1)

Example:

PT Sukses has filed the Annual Income Tax Return for the 2022 Tax Year which states:

 

Description	Amount (IDR)
Net Income	300,000,000.00
Loss carry-forward based on the Annual Income Tax Return for the 2021 Tax Year	200,000,000.00	(-)
Taxable Income	100,000,000.00

 

The Annual Income Tax Return for the 2021 Tax Year is Audited and on 11 October 2023, a notice of tax assessment is issued stating that the tax loss will amount to IDR150,000,000.00 (one hundred and fifty million rupiah).

 

Based on the Notice of Tax Assessment, if the Annual Income Tax Return for the 2022 Tax Year has not been Audited, the Taxpayer amends the Annual Income Tax Return for the 2022 Tax Year, thereby, the calculation of Taxable Income for the 2022 Tax Year is as follows:

 

Description	Amount (IDR)
Net Income	300,000,000.00
Loss according to Notice of Tax Assessment for the 2021 Tax Year	150,000,000.00	(-)
Taxable Income	150,000,000.00

 

Similarly, if the Audit Findings for the 2021 Tax Year tax loss for the Notice of Tax Assessment, for example, becomes IDR250,000,000.00 (two hundred and fifty million rupiah), the Taxpayer also amends the Annual Income Tax Return for the 2022 Tax Year in a similar manner.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

An example of the calculation of the period of 3 (three) months under this provision is as follows:

a.	if a Taxpayer receives a Notice of Tax Assessment, Objection Decision Letter, Tax Assessment Relief Decision Letter, Tax Assessment Cancellation Decision Letter, Amendment Decision Letter, Mutual Agreement Decision Letter, Appeal Decision or Civil Review Decision on 21 September 2022, the Annual Tax Return must be amended no later than 20 December 2022.
b.	if a Taxpayer receives a Notice of Tax Assessment, Objection Decision Letter, Tax Assessment Relief Decision Leter, Tax Assessment Cancellation Decision Letter, Amendment Decision Letter, Mutual Agreement Decision Letter, Appeal Decision or Civil Review Decision on 30 November 2022, the Annual Tax Return must be amended no later than 28 February 2023.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Example 1:

PT Makmur has filed the Annual Income Tax Return for the 2022 Tax Year which states:

 

Description	Amount (IDR)
Net Income	300,000,000.00
Loss-carry forward based on the Annual Income Tax Return for the 2021 Tax Year	200,000,000.00	(-)
Taxable Income	100,000,000.00

 

The Annual Income Tax Return for the 2021 Tax Year is Audited and on 12 October 2023, a Notice of Tax Assessment is issued stating a tax loss of IDR175,000,000.00 (one hundred and seventy-five million rupiah).

 

If until a period of 3 (three) months, the Taxpayer does not amend the Annual Income Tax Return for the 2022 Tax Year, the Director General of Taxes when conducting the Audit takes into account the tax loss in the Notice of Tax Assessment for the 2022 tax year.

 

Similarly, if the Notice of Tax Assessment for the 2022 Tax Year is in the process of resolving objections, the tax loss for the 2021 Tax Year is immediately taken into account in the Objection Decision Letter. This provision also applies if the Notice of Tax Assessment is in the process of completing the amendment, relief or cancellation of the Notice of Tax Assessment.

 

If the Objection Decision Letter for the 2022 tax year is in an appeal process in the tax judicial body , the tax loss for the 2021 Tax Year is submitted to the tax judicial body to be taken into account in the Appeal Decision.

 

Example 2:

PT Jaya has filed the Annual Income Tax Return for the 2022 Tax Year which states:

 

Description	Amount (IDR)
Net Income	300,000,000.00
Loss  based on the Annual Income Tax Return for the 2021 Tax Year	200,000,000.00	(-)
Taxable Income	100,000,000.00

 

The Annual Income Tax Return for the 2022 Tax Year has been Audited and a Notice of Tax Assessment has been issued. For this notice of tax assessment, legal action has been filed and a decision has been issued by the court that has permanent legal force, with the loss carry-forwardes from the 2021 Tax Year remains in the amount of IDR200,000,000.00 (two hundred million rupiah) because until the Appeal Decision or the Civil Review Decision is issued, for the 2021 Tax Year, a Notice of Tax Assessment has not yet been issued.

 

After the issuance of the court decision related to the 2022 Tax Year, in 2025, a Notice of Tax Assessment is issued stating that the tax loss for the 2021 Tax Year has changed from IDR200,000,000.00 (two hundred million rupiah) to IDR230,000,000.00 (two hundred and thirty million rupiah).

 

The treatment of the tax loss based on the Notice of Tax Assessment for the 2021 Tax Year which has not been carried forward of IDR30,000,000.00 may be carried forward to the 2023 Tax Year considering that pursuant to Article 6 paragraph (2) of the Income Tax Law, tax losses may be carried forward for 5 (five) years.

Paragraph (7)

Sufficiently clear.

Paragraph (8)

Sufficiently clear.

Article 7

Paragraph (1)

For Taxpayers being subject to law enforcement measures, the Taxpayers still have the opportunity to voluntarily disclose the untruth of their actions.

 

If Taxpayers conduct the following actions:

a.	not filing Tax Returns; or
b.	filing incorrect or incomplete Tax Returns or attaching incorrect information,

due to negligence or deliberately, the Director General of Taxes is authorised to conduct a Preliminary Audit before conducting an Investigation.

 

Even though a Taxpayer has committed the above mentioned actions and the Taxpayer is subject to a Preliminary Audit or the Preliminary Audit has been followed up for Investigation, the Taxpayers still has the opportunity to disclose their fault and the Taxpayer will not be subject to an Investigation, insofar as the commencement of the Investigation has not been notified to the public prosecutor through official investigators of the Indonesian National Police.

 

“The commencement of the Investigation” is the time the notice of commencement of the Investigation is notified to the public prosecutor through official investigators of the Indonesian National Police. Thus, if the commencement of the Investigation has been notified, the opportunity to reveal the untruth of actions is no longer available for the Taxpayer.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Sufficiently clear.

Paragraph (7)

Sufficiently clear.

Article 8

Sufficiently clear.

Article 9

Paragraph (1)

Sufficiently clear.

Paragraph (2)

“Other administrative means”, among others, refer to proof of electronic payment or proof of payment through an automated teller machine.

Paragraph (3)

Sufficiently clear.

Article 10

Sufficiently clear.

Article 11

Paragraph (1)

Sufficiently clear.

Paragraph (2)

“Special relationship” refers to the special relationship regulated under Article 18 paragraph (4) of the Income Tax Law and Article 2 paragraph (2) of the Value Added Tax Law.

 

Additional documents and/or information for Taxpayers conducting transactions with related parties include transfer pricing documentation and others.

Paragraph (3)

Sufficiently clear.

Article 12

Sufficiently clear.

Article 13

Sufficiently clear.

Article 14

Sufficiently clear.

Article 15

Sufficiently clear.

Article 16

Sufficiently clear.

Article 17

Paragraph (1)

“Tax crime” is an act that is punishable by criminal penalties as regulated under the General Provisions and Tax Procedures Law, Land and Building Tax Law, Stamp Duty Law, Tax Collection Using Distress Warrant Law and Access to Financial Information for Tax Purposes Law.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Article 18

Paragraph (1)

The Closing Conference is deemed to have been held if the Audit findings have been discussed pursuant to the provisions on procedures for Audits.

Paragraph (2)

To provide guidelines in cancelling the Notice of Tax Assessment from Audit findings, it is necessary to emphasize that the cancellation does not cancel all Audits that have been carried out. Therefore, for the Notice of Tax Assessment from Audit Findings to be a legal product issued pursuant to statutory provisions in the field of taxation, the Director General of Taxes continues the cancelled Audit by carrying out Audit procedures that have not been implemented in the form of:

a.	the submission of the notice of tax Audit findings; and/or
b.	the Closing Conference.

Paragraph (3)

Example:

A Taxpayer files the Annual Tax Return for the 2021 Tax Year which states an overpayment by applying for tax refunds on 1 April 2022. For the Annual Tax Return, the Director General of Taxes conducts an Audit. On 30 November 2022, a Notice of Tax Underpayment Assessment is issued without the Closing Conference. For the issuance of the Notice of Tax Underpayment Assessment, the Taxpayer applies for the cancellation of the Notice of Tax Assessment as regulated under Article 36 paragraph (1) subparagraph d of the General Provisions and Tax Procedures Law, for which the decision is issued on 10 May 2023. Based on the decision letter, the The Director General of Taxes continues the Audit process by carrying out procedures that have not been implemented. The period for continuing the Audit process is calculated from the period of 12 (twelve) month of the application as regulated under Article 17B paragraph (1) of the General Provisions and Tax Procedures Law minus 8 (eight) months, namely the period of the application for the Annual Tax Return is submitted until the issuance date of the Notice of Tax Assessment, thereby, the maximum period for reissuing the Notice of Tax Assessment is 4 (four) months from the issuance date of the Tax Assessment Cancellation Decision Letter.

Article 19

Paragraph (1)

Taxes, in principle, become payable when an object that may be subject to taxes arises, but for the purpose of tax administration, taxes become payable:

a.	at any given time, for Income Tax withheld by a third party;
b.	at the end of a taxable period, for Income Taxes withheld by employers or other parties on business activities or by Taxable Personson the collection of Value Added Tax on Goods and Services and Sales Tax on Luxury Goods; or
c.	at the end of a Tax Year, for Income Taxes.

 

The amount of tax payable, which has been withheld, collected or which has to be paid by Taxpayers after or during the settlement period as regulated in Article 9 and Article 10 paragraph (2) of the General Provisions and Tax Procedures Law, must be remitted by the Taxpayers to the state treasury through places of payment regulated by or based on a Ministerial Regulation as regulated under Article 10 paragraph (1) of the General Provisions and Tax Procedures Law.

 

Pursuant to the General Provisions and Tax Procedures Law, the Director General of Taxes is not obliged to issue a Notice of Tax Assessment for all Tax Returns filed by the Taxpayers. Notices of Tax Assessment are only issued for certain Taxpayers due to the untruth in the Tax Return completion or because the discovery of fiscal data not reported by the Taxpayers.

Paragraph (2)

This provision stipulates that for Taxpayers that have correctly calculated and paid the amount of tax payable pursuant to statutory provisions in the field of taxation and filed it in the Tax Return, no Notice of Tax Assessment or Notice of Tax Collection should be issued.

Paragraph (3)

Where based on Audit findings or other information, the taxes calculated and filed in Tax Returns are incorrect, for instance, if the expensing is overstated, the Director General of Taxes shall determine the amount of tax payable pursuant to statutory provisions in the field of taxation.

Article 20

The calculation of the period of 5 (five) years under this provision is as follows:

 

Example 1:

Mr. Adi files the Annual Income Tax Return for the 2022 Tax Year on 28 February 2023 with underpaid status. Thus, if data or information is found showing that for that Tax Year, there is a greater tax underpayment than what has been paid by Mr. Adi, the Director General of Taxes may issue a Notice of Tax Underpayment Assessment no later than 31 December 2027 (the calculation of 5 (five) years starts from 1 January 2023).

 

Example 2:

PT HTU files Periodic Article 21 and/or Article 26 Tax Returns for the May 2022 Taxable Period on 5 June 2022. Thus, if data or information is found showing that during the Taxable Period, there is a greater tax underpayment than what has been paid by PT HTU, the Director General of Taxes may issue a Notice of Tax Underpayment Assessment no later than 31 May 2027 (the calculation of 5 (five) years starts from 1 June 2022).

 

Example 3:

Mr. Roy who is a Taxable Person files the Periodic Value Added Tax Return for the October 2022 Taxable Period on 17 November 2022. Thus, if data or information is found showing that for the Taxable Period, there is a greater tax underpayment than what has been paid by Mr. Roy, the Director General of Taxes may issue a Notice of Tax Underpayment Assessment no later than 31 October 2027 (the calculation of 5 (five) years starts from 1 November 2022).

 

An example of the calculation of the administrative penalty as regulated under Article 13 paragraph (2) of the General Provisions and Tax Procedures Law:

 

PT NS files the Annual Corporate Income Tax Return for the 2021 Tax Year. The Annual Tax Return is Audited. Based on the Audit findings, it is known that there is a tax underpayment of IDR100,000,000 (one hundred million rupiah). The Notice of Tax Underpayment Assessment is issued on 10 December 2022.

 

In this case, the Taxpayer is subject to an administrative penalty pursuant to Article 13 paragraph (2) of the General Provisions and Tax Procedures Law calculated from the end of the 2021 Tax Year, namely 1 January 2022 until the issuance date of the Notice of Tax Underpayment Assessment (12 months).

 

The interest rate used is the interest rate based on the Ministerial Decree application on the date the calculation of the penalty commences. Calculation of the penalty commences on 1 January 2022, thereby, the interest rate used is the interest rate applicable for the January 2022 period. For example, if the interest rate of Article 13 paragraph (2) for the January 2022 period is 1.82%, the administrative penalty of Article 13 paragraph (2) = IDR100,000,000 x 1.82% x 12 months = IDR21,840,000.

 

An example of the application of one type of penalty as regulated under Article 13 paragraph (3a) of the General Provisions and Tax Procedures Law:

 

PT GM files the Periodic Value Added Tax Return for the December 2021 Taxable Period of overpaid status that is carried forward to the next taxable period. The Periodic Tax Return is Audited. Based on Audit findings, it is known that there is a tax underpayment by the Taxpayer of IDR100,000,000 (one hundred million rupiah). The Notice of Tax Underpayment Assessment is issued on 15 December 2022 with the following calculations.

 

Details	According to the Taxpayer’s Tax Return (IDR)	According to Audit findings (IDR)
Output VAT	1,000,000,000	1,000,000,000
Input VAT	1,010,000,000	900,000,000
Underpayment or (Overpayment)	(10,000,000)	100,000,000

 

In this case, the Taxpayer is subject to an administrative penalty pursuant to the General Provisions and Tax Procedures Law with the following calculation:

 

Article 13 paragraph (2) penalty IDR100,000,000 x 1.82% x 12 months = IDR21,840,000

 

Article 13 paragraph (3) penalty IDR100,000,000 x 75% = IDR7,500,000

 

Pursuant to the provisions under Article 13 paragraph (3a) of the General Provisions and Tax Procedures Law, if administrative penalties in the form of interest and surcharges are applied based on the Audit Findings of Value Added Tax and Sales Tax on Luxury Goods, only one type of administrative penalty with the highest value will be applied, thereby, the amount of tax in the Notice of Tax Underpayment Assessment is as follows:

 

Description	Amount (IDR)
Tax principal amount:
Underpaid Value Added Tax	100,000,000
Value Added Tax that should not be otherwise set off	10,000,000
Administrative penalties:
Article 13 paragraph (2) penalty	21,840,000
Total	131,840,000

Article 21

Sufficiently clear.

Article 22

Sufficiently clear.

Article 23

Sufficiently clear.

Article 24

Sufficiently clear.

Article 25

Sufficiently clear.

Article 26

Sufficiently clear.

Article 27

Paragraph (1)

Example 1:

PT CTR registers to obtain a Taxpayer Identification Number on 3 October 2021. In 2022, the Director General of Taxes obtains data showing that PT CTR in the 2020 Tax Year has taxable income on which taxes have not been paid/remitted. Based on this data, the Director General of Taxes may conduct Audits and issue a Notice of Tax Assessment and/or Notice of Tax Collection for the 2020 Tax Year before PT CTR obtains a Taxpayer Identification Number.

 

Example 2:

Mr. Cahyo registers to obtain a Taxpayer Identification Number by activating his National Identification Numberr as a Taxpayer Identification Number on 6 January 2025. In 2026, the Director General of Taxes obtains data showing that Mr. Cahyo in the 2023 Tax Year accrues income above the Personal Tax Relief on which taxes have not been paid/remitted. Based on this data, the Director General of Taxes may conduct Audits and issue a Notice of Tax Assessment and/or Notice of Tax Collection for the 2023 Tax Year before Mr. Cahyo obtains a Taxpayer Identification Number.

Paragraph (2)

Example:

PT OKV is registered as a Taxable Person on 6 January 2019. On 28 December 2023, VAT is deregistered. In 2024, the Director General of Taxes obtains data showing that in the 2022 Tax Year, PT OKV has not yet fulfilled the obligation to collect and remit Value Added Tax in the amount of IDR100,000,000.00 (one hundred million rupiah). Based on this data, the Director General of Taxes may conduct Audits and issue a Notice of Tax Assessment and/or Notice of Tax Collection for the Value Added Tax obligation for the 2022 Tax Year.

Paragraph (3)

Examples of the calculation of the period of 5 (five) years:

 

Example 1:

In respect of Value Added Tax rights and obligations for the January 2022 Taxable Period, the Director General of Taxes may continue to conduct Audits and issue a Notice of Tax Underpayment Assessment, Notice of Additional Tax Underpayment Assessment and/or Notice of Tax Collection no later than 31 January 2027.

 

Example 2:

In respect of Income Tax rights and obligations for the 2021 Tax Year, the Director General of Taxes may continue conduct Audits and issue a Notice of Tax Underpayment Assessment, Notice of Additional Tax Underpayment Assessment and/or Notice of Tax Collection no later than 31 December 2026.

Paragraph (4)

Sufficiently clear.

Article 28

Sufficiently clear.

Article 29

Sufficiently clear.

Article 30

Paragraph (1)

An example of a condition that may cause the Director General of Taxes to deregister a Taxpayer with certain criteria is where a Taxpayer is subject to an Investigation. Preliminary Audit is a process that is integral to the Investigation. Therefore, even though the Investigation has not been carried out, the Director General of Taxes has conducted a Preliminary Audit. To prevent preliminary tax refunds that should not be otherwise refunded, the Director General of Taxes revokes the issued registration of Taxpayers with certain criteria.

 

Thus, the preliminary tax refunds regulated under Article 17 C of the General Provisions and Tax Procedures Law may continue to be given to Taxpayers if the Director General of Taxes has not commenced a Preliminary Audit, namely when the Preliminary Audit notice is submitted to the Taxpayers, their representatives, attorney, employees or adult family members of the Taxpayers.

Paragraph (2)

Sufficiently clear.

Article 31

Paragraph (1)

Examples of the calculation of the period of 3 (three) months under this provision are as follows:

 

Example 1:

If a Notice of Tax Assessment is sent to a Taxpayer on 20 September 2022, the Taxpayer may file an objection no later than 19 December 2022.

 

Example 2:

If a Notice of Tax Assessment is sent to a Taxpayer on 30 November 2022, the Taxpayer may file an objection no later than 28 February 2023.

 

Example 3:

If a Taxpayer is subject to withholding tax on 10 October 2022, the Taxpayer may file an objection no later than 9 January 2023.

 

In the event of a situation beyond the Taxpayer’s control, an objection may be filed after a period of 3 (three) months. In such case, the Director General of Taxes may consider the objection filed by the Taxpayer.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Article 32

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Subparagraph a

“Administrative penalties” refer to the penalties in the Notice of Tax Assessment of Notice of Tax Collection issued due to the issuance of the Notice of Tax Assessment.

Subparagraph b

Sufficiently clear.

Subparagraph c

Sufficiently clear.

Paragraph (3)

“Summons” refers to the letter submitted to a Taxpayer which contains the opportunity for the Taxpayer to attend a meeting with tax officials at a specified time to provide information or obtain an explanation concerning the examination results of the objection.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Sufficiently clear.

Article 33

Sufficiently clear.

Article 34

Paragraph (1)

To provide further explanation, an example is given as follows:

1.	On 2 April 2023, a Notice of Tax Underpayment Assessment is issued with a value of IDR1,000,000,000.00 (one billion rupiah). The amount of tax approved in the Closing Conference is IDR300,000,000.00 (three hundred million rupiah).
2.	On 1 May 2023, the tax amount agreed upon by the Taxpayer is paid by the Taxpayer.
3.	On 3 May 2023, the Taxpayer files an objection.

 

If the Objection Decision Letter rejects the Taxpayer’s objection, the basis for imposing an administrative penalty in the form of a 30% (thirty per cent) fine is the amount of outstanding tax in the Objection Decision Letter minus the amount of tax paid before the objection is filed. In this case, the basis for calculating the administrative penalty in the form of a 30% (thirty per cent) fine is IDR700,000,000.00 (seven hundred million rupiah), resulting from IDR1,000,000,000.00 (one billion rupiah) (total tax in the Objection Decision Letter) minus IDR300,000,000.00 (three hundred million rupiah) (the amount paid before the objection is filed).

Paragraph (2)

Sufficiently clear.

Paragraph (3)

To provide legal certainty concerning the increase in the amount of outstanding tax due to the objection decision, this paragraph explains that the increase in the amount of outstanding tax is also subject to an administrative penalty in the form of a 30% (thirty per cent) fine as is the case for the amount of tax that is not agreed upon in the Closing Conference.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

In principle, the due date for payment of outstanding tax in the Notice of Tax Assessment that is not agreed upon in the Closing Conference is deferred up to 1 (one) month from the issuance date of the Objection Decision Letter, if the Taxpayer files an objection against the Notice of Tax Assessment. However, if the Taxpayer is deemed not to have filed an objection because the objection is not considered by the Director General of Taxes as it does not fulfil the formal requirements regulated under Article 25 paragraph (1), paragraph (2), paragraph (3), paragraph (3a) and Article 32 of the General Provisions and Tax Procedures Law, the amount of outstanding tax in the Notice of Tax Assessment becomes a tax liability.

 

If the tax liability is not paid by the Taxpayer, the Director General of Taxes may collect taxes using a distress warrant and the Taxpayer is not subject to an administrative penalty in the form of a 30% (thirty per cent) fine as regulated under Article 25 paragraph (9) of the General Provisions and Tax Procedures Law, but is subject to an administrative penalty in the form of interest as regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law.

Article 35

Paragraph (1)

To clarify this provision, examples are given as follows.

 

Example 1 (Appeal Decision in the form of rejection):

A Notice of Tax Underpayment Assessment for the 2023 Tax Year is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah). In the Closing Conference, the Taxpayer only agrees to part of the Audit findings with a total tax of IDR200,000,000.00 (two hundred million rupiah). The Taxpayer has settled the agreed amount of tax in the Notice of Tax Underpayment Assessment of IDR200,000,000.00 (two hundred million rupiah) and subsequently files an objection against the Audit findings that the Taxpayer does not approve. Upon the Taxpayer’s objection, the Director General of Taxes decides to reject the Taxpayer’s objection.

 

Next, the Taxpayer files an appeal and the Tax Court judge decides to reject the Taxpayer’s appeal. Thus, the Taxpayer is subject to an administrative penalty in the form of a fine pursuant to this paragraph by 60% x (IDR1,000,000,000.00 – IDR200,000,000.00) = IDR480,000,000.00.

 

Considering that the Taxpayer has already been subject to an administrative penalty in the form of a 60% (sixty per cent) fine, until the issuance of the Appeal Decision, the Taxpayer is not subject to an administrative penalty in the form of interest as regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law or an administrative penalty in the form of a 30% (thirty per cent) fine as regulated under Article 25 paragraph (9) of the General Provisions and Tax Procedures Law.

 

The remaining tax liability of IDR800,000,000.00 (eight hundred million rupiah) must be settled by the Taxpayer (due date) no later than 1 (one) month from the issuance date of the Appeal Decision. If until the due date, the remaining tax liability is not settled, the tax is collected using a distress warrant and provisions on the imposition of administrative penalties in the form of interest regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law shall apply.

 

Example 2 (Appeal Decision in the form of partial granting):

A Notice of Tax Underpayment Assessment for the 2023 Tax Year is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah). In the Closing Conference, the Taxpayer only agrees to part of the Audit findings with a total tax of IDR200,000,000.00 (two hundred million rupiah). The Taxpayer has settled the agreed amount of tax in the Notice of Tax Underpayment Assessment of IDR200,000,000.00 (two hundred million rupiah) and subsequently files an objection against the Audit findings that the Taxpayer does not agree upon. The Director General of Taxes partially grants the Taxpayer’s objection with the amount of outstanding tax of IDR750,000,000.00 (seven hundred and fifty million rupiah).

 

Next, the Taxpayer files an appeal and the Tax Court judge decides to partially grant the Taxpayer’s appeal, thereby, the amount of outstanding tax becomes IDR450,000,000.00 (four hundred and fifty million rupiah). In this case, the Taxpayer is subject to an administrative penalty in the form of a fine pursuant to this paragraph by 60% x (IDR450,000,000.00 - IDR200,000,000.00) = IDR150,000,000.00.

 

Considering that the Taxpayer has already been subject to an administrative penalty in the form of a 60% (sixty per cent) fine, until the issuance of the Appeal Decision, the Taxpayer is not subject to an administrative penalty in the form of interest as regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law or an administrative penalty in the form of a 30% (thirty per cent) fine as regulated under Article 25 paragraph (9) of the General Provisions and Tax Procedures Law.

 

The remaining tax liability of IDR250,000,000.00 (two hundred and fifty million rupiah) must be settled by the Taxpayer (due date) no later than 1 (one) month from the issuance date of the Appeal Decision. If until the due date, the remaining tax liability is not settled, the tax is collected using a distress warrant and provisions on the imposition of administrative penalties in the form of interest regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law shall apply.

 

Example 3 (Appeal Decision in the form of an addition):

A Notice of Tax Underpayment Assessment for the 2023 Tax Year is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah). In the Closing Conference, the Taxpayer only agrees to an outstanding tax of IDR200,000,000.00 (two hundred million rupiah). The Taxpayer has paid the agreed amount in the Notice of Tax Underpayment Assessment of IDR200,000,000.00 (two hundred million rupiah) and subsequently files an objection against other corrections. The Director General of Taxes rejects the Taxpayer’s objection.

 

Next, the Taxpayer files an appeal and the Tax Court decides to increase the outstanding tax to IDR1,300,000,000.00 (one billion and three hundred million rupiah). Thus, the Taxpayer is subject to an administrative penalty in the form of a fine pursuant to this paragraph by 60% x (IDR1,300,000,000.00 - IDR200,000,000.00) = IDR660,000,000.00.

 

Considering that the Taxpayer has already been subject to an administrative penalty in the form of a 60% (sixty per cent) fine, until the issuance of the Appeal Decision, the Taxpayer is not subject to an administrative penalty in the form of interest as regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law or an administrative penalty in the form of a 30% (thirty per cent) fine as regulated under Article 25 paragraph (9) of the General Provisions and Tax Procedures Law.

 

The remaining tax liability of IDR1,100,000,000.00 (one billion and one hundred million rupiah) (IDR1,300,000,000.00 - IDR200,000,000.00 must be settled by the Taxpayer (due date) no later than 1 (one) month from the issuance date of the Appeal Decision. If until the due date, the remaining tax liability is not settled, the tax is collected using a distress warrant and provisions on the imposition of administrative penalties in the form of interest regulated under Article 19 paragraph (1) of the General Provisions and Tax Procedures Law shall apply.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Article 36

Paragraph (1)

 

Example 1:

A Taxpayer is issued a Notice of Tax Underpayment Assessment for the 2023 Tax Year with an outstanding tax of IDR3,000,000,000.00 (three billion rupiah). The corporate Annual Income Tax Return previously filed by the Taxpayers is of underpaid status with a value of IDR1,000,000,000.00 (one billion rupiah). In the Closing Conference, the Taxpayer does not agree to all Audit Findings, thereby, no payment of the amount of outstanding tax in the Notice of Tax Underpayment Assessment is made by the Taxpayer prior to filing an objection. Based on the objection filed by the Taxpayer, the Director General of Taxes issues an Objection Decision Letter which decides to reject the Taxpayer’s objection. Based on the Objection Decision Letter, the Taxpayer subsequently files an appeal, and the Tax Court Judge decides to accept all of the Taxpayer’s appeal. Based on the Appeal Decision, no tax must be paid by the Taxpayer. the Director General of Taxes subsequently files a civil review to the Supreme Court. The results of the Civil Review Decision grant the applicant’s application and state that the amount of the Taxpayer’s outstanding tax is IDR3,000,000,000.00 (three billion rupiah). In this case, the Taxpayer must settle the outstanding tax amount of IDR3,000,000,000.00OO (three billion rupiah) plus the administrative penalty referred to in this paragraph by 60% x IDR3,000,000,000.00 = IDR1,800,000 000.00.

 

Example 2:

A Taxpayer is issued a Notice of Tax Underpayment Assessment for the 2023 Tax Year with an outstanding tax amount of IDR3,000,000,000.00OO (three billion rupiah). The corporate Annual Income Tax Return previously filed by the Taxpayers is of underpaid status with a value of IDR400,000,000.00 (four hundred million rupiah). In the Closing Conference, the Taxpayer agrees to an amount of the outstanding tax of IDR600,000,000.00 (six hundred million rupiah), thereby, the Taxpayer pays the Notice of Tax Underpayment Assessment in the amount agreed in the Closing Conference before filing an objection. Based on the objection filed by the Taxpayer, the Director General of Taxes issues an Objection Decision Letter which decides to reject the Taxpayer’s objection. The Taxpayer subsequently files an appeal, and the Tax Court Judge decides to grant part of Taxpayer’s appeal and declares the underpaid tax to be IDR600,000,000.00 (six hundred million rupiah). Considering that the Taxpayer has made a payment before filing the objection in an amount equal to the Appeal Decision, no tax must be paid based on the Appeal Decision by the Taxpayer and is not subject to administrative penalties as regulated under Article 27 paragraph (5d) of the General Provisions and Tax Procedures Law. The Director General of Taxes subsequently files a civil review to the Supreme Court. The results of the Civil Review Decision grant the applicant’s application and state that the amount of the Taxpayer’s outstanding tax is IDR3,000,000,000.00 (three billion rupiah). the Taxpayer must pay the outstanding tax amount of IDR3,000,000,000.00 - IDR600,000,000.00 = IDR2,400,000,000.00, plus the administrative penalty referred to in this paragraph by 60% x (IDR3,000,000,000.00 - IDR600,000,000.00) = IDR1,440,000,000.00.

Paragraph (2)

Sufficiently clear.

Article 37

Paragraph (1)

Sufficiently clear.

Paragraph (2)

In principle, the Director General of Taxes’ authority to amend Notice of Tax Assessment, Notice of Tax Collection or taxation-related decrees is intended to carry out good governmental duties pursuant to statutory provisions. In carrying out the task of calculating and assessing taxes, whether in issuing a Notice of Tax Assessment, Notice of Tax Collection or taxation-related decrees, human errors or mistakes may occur.

 

The nature of the mistake or error does not constitute a dispute between the Director General of Taxes and the Taxpayer. In addition, continuous and interrelated tax obligations from a Taxable Period to another Taxable Period or from a Tax Year to another Tax Year. Thus, an error may occur due to the issuance of a Notice of Tax Assessment, decision letter or taxation-related decisions or a Taxable Period or Tax Year that affects another Taxable Period or Tax Year, for example, there is a correction to the depreciation, amortization, loss carry-forwardes and so forth.

 

“Taxation-related decrees” include, among others, Objection Decision Letters and Mutual Agreement Decision Letters.

 

“Taxation-related decisions” include Appeal Decisions and Civil Review Decisions.

 

Example:

PT A files the Annual Tax Return for the 2023 Tax Year with the value of losses being carried forward to the following year of IDR200,000.000.000 (two hundred million rupiah) and overpayment of IDR50.000.000.00 (fifty million rupiah).

 

PT A files the Annual Tax Return for the 2024 Tax Year with a net income of IDR180,000,00.00 (one hundred and eighty million rupiah). The remaining losses not yet carried forward until the 2023 Tax Year amount to IDR200,000,00.00 (two hundred million rupiah) and there is a tax credit of IDR35,000,00.00 (thirty-five million rupiah). Thus, the Annual Tax Return for the 2024 Tax Year states an overpayment of IDR35,000,00.00 (thirty-five million rupiah) and there remains a remaining loss that may be carried forward to the following year of IDR20,000,00.00 (twenty million rupiah). For PT A Taxpayer, the following have been issued:

a.	Notice of Tax Overpayment Assessment for the 2023 Tax Year of IDR15,000,00.00 (fifteen million rupiah) with a loss of IDR200,000,00.00 (two hundred million rupiah); and
b.	Notice of Nil Tax Assessment for the 2024 Tax Year with a loss of IDR20,000,00.00 (twenty million rupiah).

 

For the Notice of Tax Assessment for the 2023 Tax Year, an Appeal Decision is issued which grants a fraction of the overpayment of IDR15,000,00.00 (fifteen million rupiah) to IDR40,000.00,00 (forty million rupiah) whereas a loss of IDR200,000,00.00 (two hundred million rupiah) becomes IDR150,000,00.00 (one hundred and fifty million rupiah). Losses that may be carried forward in the calculation of the Notice of Tax Assessment for the 2024 Tax Year amount to IDR150,000,000.00 (one hundred and fifty million rupiah). Therefore, pursuant to Article 16 of the General Provisions and Tax Procedures Law, the Director General of Taxes is authorised to amend the Notice of Tax Assessment for the 2024 Tax Year resulting from differences in the loss carry-forward pursuant to statutory tax provisions from the loss of IDR20,000,000.00 (twenty million rupiah) to a profit of IDR30,000,00.00 (thirty million rupiah). (Loss of IDR20,000,00.00 minus the relief of the loss carry-forward of IDR50,000,00.00).

 

Thus, the Notice of Nil Tax Assessment for the 2024 Tax Year issued by the Director General of Taxes must be amended ex officio.

Paragraph (3)

“Errors in Input Value Added Tax crediting” refers to human errors and do not contain a dispute between the tax authorities and Taxpayers.

 

Example:

A Notice of Value Added Tax Underpayment Assessment has been issued on behalf of PT A for the February 2022 Taxable Period, with the following details:

 

Output VAT of IDR100,000,00.00 (one hundred million rupiah).

 

Input VAT of IDR75,000,000.00 (seventy-five million rupiah).

 

In the Input VAT, there is 1 (one) Tax Invoice of IDR7,500,00.00 (seven million and five hundred thousand rupiah) where an error occurs in the calculation of the Input VAT, upon the Audit becomes IDR5,700,00.00 (five million and seven hundred thousand rupiah). Against such an error, the Director General of Taxes may ex officio amend the Notice of Tax Underpayment Assessment.

 

However, if an error occurs in the form of the non-calculation of a Tax Invoice as Input VAT in the Notice of Tax Assessment, the error pursuant to Article 16 of the General Provisions and Tax Procedures Law cannot be amended.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Article 38

Sufficiently clear.

Article 39

Sufficiently clear.

Article 40

Paragraph (1)

“Can no longer be found due to circumstances beyond control” is, among others, caused by natural disasters.

 

“A decision issued by the Director General of Taxes in implementing statutory laws and regulations in the field of taxation” includes among others:

a.	Notice of Tax Collection;
b.	Notice of Tax Underpayment Assessment;
c.	Notice of Additional Tax Underpayment Assessment
d.	Notice of Nil Tax Assessment;
e.	Notice of Tax Overpayment Assessment;
f.	Amendment Decision Letter;
g.	Mutual Agreement Decision Letter;
h.	Objection Decision Letter;
i.	Administrative Penalty Relief Decision Letter;
j.	Administrative Penalty Nullification Decision Letter;
k.	Tax Assessment Relief Decision Letter;
l.	Tax Assessment Cancellation Decision Letter;
m.	tax returns;
n.	reprimand letters;
o.	warning letters;
o.	warning letter;
p.	certificates;
q.	approval letters; and
r.	rejection letters.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Article 41

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Example:

A Taxpayer files Annual Tax Return for the 2021 Tax Year which states overpayment with an application for tax refunds on 1 April 2022. Against the Annual Tax Return, the Director General of Taxes conducts an Audit. On 30 November 2022, a Notice of Tax Underpayment Assessment is issued. Upon the issuance of the Notice of Tax Underpayment Assessment, the Taxpayer files a lawsuit because there were inappropriate procedures or mechanisms for the issuance. The results of the Lawsuit Decision grant the Taxpayers’ lawsuit and the decision is received by the Director General of Taxes on 10 May 2023. Based on this decision, the Director General of Taxes reissues the Notice of Tax Assessment according to the procedures or mechanisms for issuance regulated under statutory provisions in the field of taxation.

 

The reissuance period for the Notice of Tax Assessment is calculated from the application period of 12 (twelve) months as regulated under Article 17B paragraph (1) of the General Provisions and Tax Procedures Law minus 8 (eight) months, namely the period since the application for the Annual Tax Return is submitted until the issuance date of the Notice of Tax Assessment, thereby, the reissuance period for the Notice of Tax Assessment is no later than 4 (four) months from the issuance date of the Lawsuit Decision.

Article 42

Sufficiently clear.

Article 43

Paragraph (1)

“A letter of implementation of the Appeal Decision” refers to a letter issued by the Director General of Taxes to implement the Appeal Decision from the Tax Court, thereby, the Appeal Decision may be recorded in the tax administration system.

Paragraph (2)

“A letter of implementation of Civil Review Decision” is a letter issued by the Director General of Taxes to implement a Civil Review Decision from the Supreme Court, thereby, the Civil Review Decision may be recorded in the tax administration system.

Paragraph (3)

“A letter of implementation of Lawsuit Decision” is a letter issued by the Director General of Taxes to implement a Lawsuit Decision from the Tax Court.

Article 44

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Example 1:

A Notice of Tax Underpayment Assessment is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah) for the Annual Income Tax Return for the 2021 Tax Year which states overpayment with an application for tax refunds of IDR2,500,000,0000.00 (two billion and five hundred million rupiah).

 

In the Closing Conference, the Taxpayer does not agree to all outstanding taxes and agrees that the amount of overpayment according to the Taxpayer of IDR1,500,000,0000.00 (one billion and five hundred million rupiah), thereby, no payment is made by the Taxpayer.

 

Against the objection filed by the Taxpayer, the Director General of Taxes issues an Objection Decision Letter stating an overpayment of IDR1,600,000,0000.00 (one billion and six hundred million rupiah).

 

The amount of tax overpayment refunded to the Taxpayer is IDR1,600,000,000.00 (one billion and six hundred million rupiah), which is the amount of overpayment stated in the Objection Decision Letter. In this case, the Taxpayer is given interest compensation per month in the amount of the applicable reference interest rate at the beginning of the calculation of the interest compensation divided by 12 (twelve) for a maximum of 24 (twenty-four) months which is calculated from the amount of overpayment agreed by Taxpayer in the Closing Conference of IDR1,500,000,000.00 (one billion and five hundred million rupiah).

 

Example 2:

A Notice of Tax Underpayment Assessment is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah) for the Annual Income Tax Return for the 2021 Tax Year which states overpayment with an application for tax refunds of IDR2,500,000,0000.00 (two billion and five hundred million rupiah). In the Closing Conference, the Taxpayer does not agree to all outstanding taxes, but the Taxpayer settles the said Notice of Tax Underpayment Assessment before filing an objection. Moreover, the Taxpayer agrees to the amount of overpayment according to the Taxpayer of IDR2,000,000,0000.00 (two billion rupiah). Against the objection filed by the Taxpayer, the Director General of Taxes issues an Objection Decision Letter by granting part of the Taxpayer’s application, thereby, the among of overpayment in the Objection Decision Letter becomes IDR1,250,000,0000.00 (one billion and two hundred and fifty million rupiah).

 

The amount of tax overpayment refunded to the Taxpayer is IDR2,250,000,000.00 (two billion and two hundred and fifty million rupiah), which is the amount of overpayment stated in the Objection Decision Letter plus the already paid Notice of Tax Underpayment Assessment (IDR1.000,000,0000.00). In this case, the Taxpayer is given interest compensation per month in the amount of the applicable reference interest rate at the beginning of the calculation of the interest compensation divided by 12 (twelve) for a maximum of 24 (twenty-four) months which is calculated from the amount of overpayment based on the Objection Decision Letter of IDR1,250,000,000.00 (one billion and two hundred and fifty million rupiah).

 

Example 3:

A Notice of Tax Underpayment Assessment is issued with an outstanding tax amount of IDR1,000,000,000.00 (one billion rupiah) for the Annual Income Tax Return for the 2021 Tax Year which states overpayment with an application for tax refunds of IDR2,500,000,0000.00 (two billion and five hundred million rupiah). In the Closing Conference, the Taxpayer agrees to the amount of outstanding tax of IDR500,000,0000.00 (five hundred million rupiah). The Taxpayer settles the said Notice of Tax Underpayment Assessment in the amount agreed in the Closing Conference before filing an objection. Against the objection filed by the Taxpayer, the Director General of Taxes issues an Objection Decision Letter, thereby, the among of overpayment in the Objection Decision Letter becomes IDR1,250,000,0000.00 (one billion and two hundred and fifty million rupiah).

 

The amount of tax overpayment refunded to the Taxpayer is IDR1,750,000,000.00 (one billion and seven hundred and fifty million rupiah), which is the amount of overpayment stated in the Objection Decision Letter plus the already paid Notice of Tax Underpayment Assessment (IDR500,000,0000.00). In this case, the Taxpayer is not given interest compensation.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Sufficiently clear.

Paragraph (7)

“Issuance date of the Appeal Decision” refers to the date the Appeal Decision is received by the Director General of Taxes.

 

“Issuance date of the Civil Review Decision” refers to the date the Civil Review Decision is received by the Director General of Taxes.

 

Example 1:

A Notice of Tax Underpayment Assessment for the 2020 Tax Year is issued on 5 April 2022 and an objection is filed on 8 June 2022. If the Objection Decision Letter granting the Taxpayer’s application is issued on 10 May 2023, the calculation of the period as the basis for granting interest compensation pursuant to the provisions of this paragraph is from 5 April 2022 to 10 May 2023, namely 14 (fourteen) months [13 (thirteen) full months, namely 5 April 2022 to 4 May 2023 plus part of the month treated as 1 (one) full month, namely 5 May 2023 to 10 May 2023].

 

Example 2:

A Notice of Tax Underpayment Assessment for the 2020 Tax Year is issued on 5 April 2022 and an objection is filed on 10 May 2022. Objection Decision Letter rejecting the Taxpayer’s application is issued on 5 January 2023. The Taxpayer files an appeal and the Appeal Decision which grants all the Taxpayer’s application is pronounced by the Tax Court judge in a public trial on 14 February 2024 and received by the Director General of Taxes on 20 March 2024. In this case, the calculation of the period as the basis for granting interest compensation pursuant to the provisions of this paragraph starts from 5 April 2022 to 20 March 2024, namely for 24 (twenty-four) months [23 (twenty-three) full months, namely 5 April 2022 to 4 March 2024 plus part of the month treated as 1 (one) full month, namely 5 March 2024 to 20 March 2024].

Paragraph (8)

Sufficiently clear.

Paragraph (9)

Sufficiently clear.

Article 45

Paragraph (1)

The definition of the increase in the amount of outstanding tax includes the amount of administrative penalties in the form of interest, fines or surcharges.

Paragraph (2)

Examples of taxes that should not otherwise be refunded

 

Example 1:

A Taxpayer is issued a Notice of Tax Underpayment Assessment with a value of IDR80,000,000.00 (eighty million rupiah). Based on the Notice of Tax Underpayment Assessment, the fraction agreed by the Taxpayer in the Closing Conference is IDR50,000,000 (fifty million rupiah). The Taxpayer files an objection by first settling the agreed amount of tax in the Closing Conference. The Decision Objection states that the Notice of Tax Underpayment Assessment becomes IDR70,000,000.00 (seventy million rupiah). Against the objection decision, the Taxpayer files an appeal. The Appeal Decision states that the outstanding amount in the Notice of Tax Underpayment Assessment is IDR40,000,000.00 (forty million rupiah). Based on the Appeal Decision, the Director General of Taxes refunds the tax overpayment of IDR10,000,000.00 (ten million rupiah), namely the payment before the objection is filed minus the outstanding amount based on the Appeal Decision. Against the Appeal Decision, the Director General of Taxes files a civil review to the Supreme Court. The Civil Review Decision states that the outstanding amount in the Notice of Tax Underpayment Assessment is IDR70,000,000.00 (seventy million rupiah). Based on the Civil Review Decision, the amount of the Taxpayer’s outstanding tax is IDR30,000,000.00 (thirty million rupiah) consisting of the amount of tax that must be paid based on the Civil Review Decision minus taxes that have been paid before the objection is filed (IDR70,000,000.00 - IDR50,000,000.00OO = IDR20,000,000.00) and plus tax that should not be otherwise refunded based on the Appeal Decision (IDR50,000,000.00 - IDR40,000,000.00 = IDR10,000,000.00).

 

Example 2:

A Taxpayer files the Annual Income Tax Return stating an Overpayment of IDR90,000,000.00 (ninety million rupiah). The Tax Return is Audited, and a Notice of Tax Overpayment Assessment is issued with a value of IDR10,000,000.00 (ten million rupiah). Against the Notice of Tax Overpayment Assessment, the Taxpayer files an objection with a decision stating that the Notice of Tax Overpayment Assessment remains IDR10,000,000.00 (ten million rupiah). The Taxpayer files an appeal. The Appeal Decision states that the Notice of Tax Overpayment Assessment is IDR80,000,000.00 (eighty million rupiah). Based on the Appeal Decision, the Director General of Taxes refunds the overpayment of IDR70,000,000.00 (seventy million rupiah) calculated from the amount of the overpayment based on the Appeal Decision of IDR80,000,000.00 (eighty million rupiah) minus the amount that has been refunded based on the Notice of Tax Overpayment Assessment of IDR10,000,000.00 (ten million rupiah). Based on the Appeal Decision, the Director General of Taxes files a civil review to the Supreme Court. The Civil Review Decision states that the amount of tax overpayment in the Notice of Tax Overpayment Assessment becomes IDR10,000,000.00 (ten million rupiah). Based on the Civil Review Decision, the Taxpayer is subject to the collection of the amount of tax that should not otherwise be refunded by IDR70,000,000.00 (seventy million rupiah).

Paragraph (3)

Sufficiently clear.

Article 46

Sufficiently clear.

Article 47

Sufficiently clear.

Article 48

Sufficiently clear.

Article 49

Sufficiently clear.

Article 50

Sufficiently clear.

Article 51

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

“Certain competencies" include, among other things, a certain level of education, certification and/or guidance by associations or the Ministry of Finance.

Paragraph (4)

Sufficiently clear.

Article 52

Sufficiently clear.

Article 53

Sufficiently clear.

Article 54

Paragraph (1)

The definition of “officials” includes tax officers and those who carry out tasks in the field of taxation.

 

“Experts” refer to experts, including linguists, accountants, lawyers and so forth appointed by the Director General of Taxes to assist in the implementation of statutory provisions in the field of taxation.

Paragraph (2)

“Certain appointed parties” refer to parties requiring tax data for state purposes, for example in the context of an Investigation, prosecution or in the context of establishing cooperation with state agencies, government agencies, legal entities established through Laws or Government Regulations or other parties.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

The provision of tax data and information by officials or experts appointed by the Director General of Taxes to parties in the context of carrying out duties in the field of taxation, for example, Audits, Preliminary Audits, tax collection, lawsuits, appeals, Investigations and prosecution of tax crimes and in tax crime trial proceedings in court, does not require written permits from the Minister.

Paragraph (6)

Sufficiently clear.

Article 55

Sufficiently clear.

Article 56

Sufficiently clear.

Article 57

Paragraph (1)

The filing of an objection is adjusted if there are other matter in dispute beyond the agreement in the Mutual Agreement, thereby, it is necessary to adjust the filing of an objection.

 

“Adjustment” refers to the removal of the dispute from the objection discussion but the agreement in the Mutual Agreement remains into account in the Objection Decision Letter.

 

The filing of an objection is revoked if the Mutual Agreement contains an agreement for the entire matter in dispute against which the objection is filed and the Taxpayer has not received a summons.

Paragraph (2)

The application for relief or cancellation of the Notice of Tax Assessment is revoked if the Mutual Agreement contains an agreement for part or all of the matter in dispute for which the relief or cancellation of the Notice of Tax Assessment is applied.

Paragraph (3)

The filing of an appeal is adjusted if there are other matter in dispute beyond the agreement in the Mutual Agreement, thereby, it is necessary to adjust the filing of an appeal by submitting a rebuttal letter or written explanation to the Judicial Panel of the Tax Court.

 

“Adjustment” refers to the removal of the dispute from the appeal discussion but the agreement in the Mutual Agreement remains taken into account in the Appeal Decision.

 

The filing of an appeal is revoked if the Mutual Agreement contains an agreement for the entire matter in dispute against which the appeal is filed.

Paragraph (4)

The filing of a civil review is adjusted if there are other matter in dispute beyond the agreement in the Mutual Agreement, thereby, it is necessary to adjust the filing of a civil review by submitting an addendum to the civil review application to the registrar handling state administrative cases at the Supreme Court.

 

“Adjustment” refers to the removal of the dispute from the civil review discussion but the agreement in the Mutual Agreement remains taken into account in the Civil Review Decision.

 

The filing of a civil review is revoked if the Mutual Agreement contains an agreement for the entire matter in dispute against which the civil review is filed.

Paragraph (5)

Example:

PT DPI receives a Notice of Tax Underpayment Assessment for the 2022 Tax Year. However, PT DPI believes that the issuance of the Notice of Tax Underpayment Assessment is not in accordance with the procedures stipulated in statutory tax laws and regulations. PT DPI subsequently files a lawsuit to the Tax Court and at the same time, the Director General of Taxes receives a request for the implementation of the Mutual Agreement Procedure from the tax authority of a tax Treaty partner for fiscal corrections in the Notice of Tax Underpayment Assessment. If the Mutual Agreement Procedure results in an agreement in the Mutual Agreement, to be followed up with the issuance of a Mutual Agreement Decision Letter, PT DPI must revoke the filed lawsuit.

Paragraph (6)

Sufficiently clear.

Article 58

Sufficiently clear.

Article 59

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Sufficiently clear.

Paragraph (7)

Subparagraph a

Sufficiently clear.

Subparagraph b

Sufficiently clear.

Subparagraph c

Sufficiently clear.

Subparagraph d

Sufficiently clear.

Subparagraph e

“Third parties” refer to other parties that have a relationship with the actions, work, business or independent personal services of the Taxpayer subject to the Preliminary Audit, such as banks, public accountants, notaries, tax consultants, administration offices, legal consultants, financial consultants, customers or suppliers.

Subparagraph f

Sufficiently clear.

Subparagraph g

Sufficiently clear.

Paragraph (8)

Sufficiently clear.

Paragraph (9)

Sufficiently clear.

Article 60

Sufficiently clear.

Article 61

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

“Red notice” refers to a request to law enforcement around the world to find and temporarily arrest a person who is to be extradited, handed over or subject to similar legal actions.

Paragraph (6)

Sufficiently clear.

Paragraph (7)

“Other law enforcement officials” refer to, among others, law enforcement officials of the Indonesian National Police and the Prosecution Office of the Republic of Indonesia.

Subparagraph a

“Technical support” refers to assistance from the Indonesian National Police, among others, in the form of forensic laboratory examinations, identification examinations and/or psychological examinations.

Subparagraph b

“Tactical assistance” refers to assistance from the Indonesian National Police, among others, in the form of assistance in the form of Investigators, security and/or equipment.

Subparagraph c

“Coercive assistance” refers to assistance from the Indonesian National Police, among others, in the form of assistance in arrest and/or detention.

Subparagraph d

“Consulting assistance” refers to assistance from the Indonesian National Police and/or the Prosecution Office of the Republic of Indonesia, which among others, is in the form of Investigation consulting assistance, including consulting and preliminary hearings in the settlement and submission of case files to the public prosecutor.

Paragraph (8)

Sufficiently clear.

Article 62

Paragraph (1)

The travel bans in carrying out an Investigation are carried out, among others, against suspects and/or witnesses who may potentially become the suspects.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Article 63

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Subparagraph a

Example:

Taxpayers or suspects commit a tax crime “by deliberately using tax invoices that are not based on actual transactions” resulting in the Taxpayers or suspects filing “Periodic Value Added Tax Returns with incorrect contents”. To this tax crime, the penalties of Article 39A subparagraph a of the General Provisions and Tax Procedures Law shall be applied.

Subparagraph b

Example:

Taxpayers or suspects commit a tax crime “by deliberately issuing tax invoices that are not based on actual transactions and not remitting taxes that have been withheld or collected”. To this tax crime, the penalties of Article 39A subparagraph a of the General Provisions and Tax Procedures Law and Article 39 paragraph (1) subparagraph i of the General Provisions and Tax Procedures Law shall be applied.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

Sufficiently clear.

Paragraph (6)

Sufficiently clear.

Paragraph (7)

Sufficiently clear.

Article 64

Sufficiently clear.

Article 65

Sufficiently clear.

Article 66

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

Sufficiently clear.

Paragraph (4)

Sufficiently clear.

Paragraph (5)

“Other parties” refer to parties other than government agencies, institutions and associations that may facilitate the exercise of tax rights and/or fulfilment of tax obligations through an administration system organised by other parties but integrated with the Directorate General of Taxes administration system.

 

Example:

Other parties than government agencies, institutions and associations that may facilitate online registration of Taxpayers, online bookkeeping, online issuance of withholding receipt or collection receipt and online filing of Tax Returns through an administrative system organised by other parties but integrated with the Directorate General of Taxes administration system.

Paragraph (6)

Sufficiently clear.

Article 67

Sufficiently clear.

Article 68

Sufficiently clear.

Article 69

Paragraph (1)

Sufficiently clear.

Paragraph (2)

Sufficiently clear.

Paragraph (3)

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Paragraph (4)

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Paragraph (5)

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Paragraph (6)

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Paragraph (7)

Sufficiently clear.

Paragraph (8)

“Certain criteria” refer to, among others, the threshold of power station capacity.

Paragraph (9)

Sufficiently clear.

Article 70

Sufficiently clear.

Article 71

Sufficiently clear.

Article 72

Sufficiently clear.

Article 73

Sufficiently clear.

Article 74

Sufficiently clear.

Article 75

Sufficiently clear.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUPPLEMENT TO THE STATE GAZETTE OF THE REPUBLIC OF INDONESIA NUMBER 6834