Types of Tax Assessment Letter

The name of a tax assessment letter refers to the resulting balance between the tax due and the tax credits. Accordingly, there are three types of tax assessment letters:

  • Overpaid Tax Assessment Letter (Surat Ketetapan Pajak Lebih Bayar/SKPLB) if the tax due is less than the tax credit amount;
  • Underpaid Tax Assessment Letter (Surat Ketetapan Pajak Kurang Bayar/SKPKB   ) if the tax due exceeds the tax credit amount;
  • Nil Tax Assessment Letter (Surat Ketetapan Pajak Nihil/SKPN) if the tax due amount is equal to the tax credit

amount.

If a SKPKB is issued, this may include one of the following administrative penalties:

  • Interest at 2% per month for a maximum of 24 months;
  • A 50% surcharge for income tax liability;
  • A 100% surcharge for withholding tax liability;
  • A 100% surcharge for VAT and LST liabilities.

Which penalties are applicable will depend on the type of wrongdoing the taxpayer has committed. The penalty amounts are determined by the application of the relevant rate to the underpaid tax amounts.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s