A taxpayer who does not agree with a tax assessment letter can submit an Objection (Keberatan) to the DGT office within three months of the date of issue of the assessment letter. The Objection must state what the taxpayer has calculated as the tax due and set out the reasons for his or her disagreement with the DGT tax assessment.

The DGT has to issue a decision on the tax Objection within 12 months of the fling date of the Objection. If no decision is issued by the DGT within 12 months, the objection is automatically deemed approved by the DGT.

If the objection is rejected by the DGT, any underpayment is subject to a surcharge of 50%. However, the underpaid tax

and the surcharge are not payable if the taxpayer files an appeal with the tax court in respect of the objection decision.

An Objection may also be fled by a taxpayer with the DGT office with respect to tax withheld by a third party. The same time limits on fling the Objection and for the DGT’s decision apply to this type of Objection.