A Tax Court Decision is considered to be a final decision with full legal force. However, the parties involved in a tax dispute may file a Judicial Review Request (Peninjauan Kembali/PK) on a Tax Court Decision with the Supreme Court. This can be done only if any of the following conditions prevail: 1. The Decision… Read More
Tax Dispute and Resolution
A tax dispute between a taxpayer and the DGT will typically arise following the issuance of a tax assessment letter (SKP) by the DGT which the taxpayer disputes. An SKPKB, an SKPKBT, and an STP constitute legal tax collection instruments on the basis of which the DGT may issue a Distress Warrant if the taxpayer… Read More
Tax Collection Using Distress Warrant
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
INDONESIAN TAX 