If a legal tax collection instrument is not paid within the required time, the DGT may by law issue a Distress Warrant (Surat Paksa) to a taxpayer. The instruments include the following documents: • Tax Collection Letters/STP;• Underpaid Tax Assessment Letters/SKPKB;• Additional Underpaid Tax Assessment Letters/SKPKBT;• Tax Objection Decision Letters (which demand an additional payment… Read More
Tax assessments
A tax assessment letter applies only to one specific tax for one particular tax period or year and typically takes into account the following factors • The tax due;• The applicable tax credits;• The resulting balance between the tax due and the tax credits (overpaid, nil, or underpaid);• The administrative penalty (interest or a surcharge).… Read More
Tax Audits
taxpayers are required to calculate, pay, and report their tax liabilities in accordance with prevailing tax laws and regulations. The DGT may then conduct a tax audit to test this self-assessment compliance with the tax obligations and issue tax assessment as a result of tax audit. Tax auditsThe tax audit of a company may cover… Read More
Accounting for Tax
Generally, for tax purposes, a company’s books must be maintained in accordance with the prevailing accounting standards unless the tax law stipulates otherwise. On this point it is worth notify that, as at the end of 2018, the MoF had issued a specific regulation on the accounting and tax treatment for PPPs in an effort… Read More
Early Tax Refunds
An early tax refund is available for taxpayers that meet certain criteria, as follows : A.Golden Taxpayers 1)Submit tax returns in a timely manner; 2)Have no tax arrears for all types of taxes, except tax arrears which have obtained a permit to pay tax in instalments or that have been audited; 3)Financial Statement audited by… Read More
Tax Payments and Tax Return Filing
Tax liabilities for a particular period or year must typically be paid to the State Treasury through a designated tax-payment bank (bank persepsi) and then accounted for to the ITO through the filing of the relevant tax returns. Tax payments and tax returns filing for a particular tax mustbe undertaken monthly or annually, or both… Read More
Duty on the acquisition of land and building rights
A transfer of land and building rights will typically also give rise to duty on the acquisition of land and building rights (Bea Pengalihan Hak atas Tanah dan Bangunan/BPHTB) liability for the party receiving or obtaining the rights. BPHTB is also a part of regional taxes which are governed under PDRD Law. Qualifying land and… Read More
Tax on land and building transfer
A transfer of rights to land and building will give rise to income tax on the deemed gain on the transfer/sale to be charged to the transferor (seller). The tax is set at 2.5% of the gross transfer value (tax base). However, for transfers of simple houses and simple apartments conducted by taxpayers engaged in… Read More
Land and Building Tax
Land and building tax (Pajak Bumi dan Bangunan/PBB) is a tax on property chargeable on all land and/or buildings, unless exempted. The negative list setting out land and buildings not subject to PBB includes those: • Used by central and regional Government for governance purposes; • Used for public interest in the areas of religious… Read More
Concessions on special projects and special zones
Foreign loan-funded and foreign grant-funded government projectsGovernment projects funded with foreign loans or foreign grants may be eligible for special tax treatment for the income derived from that funding. The projects that typically qualify are set out in the state Project Table of Contents (Daftar Isian Proyek/DIP) or other similar documents. Main contractors, consultants and… Read More
INDONESIAN TAX 