Tax Guide - Timeline for Tax Disputes Resolution
We are pleased to share a practical guide for navigating the timeline of tax disputes resolution in Indonesia, which include:
- Tax Audit
- Tax Objection
- Tax Appeal and
- Civil Review
We hope this guide will make the process smoother for taxpayers facing tax disputes
Tax Update January 2021
The January 2021 Tax Update informs several new regulations related to:
- Creation Job Law (Omnibus Law) No. 11 year 2020 which covers the major changes to tax laws, i.e. General Tax Procedures (KUP Law), Income Tax Law, and VAT Law
- New Stamp Duty
Tax Update July 2020
The July 2020 Tax Update informs several new regulations related to:
- VAT collection for digital transactions from outside Indonesia to Indonesia
- Application of electronic Withholding Tax Slips Art. 23 for all taxpayers in Indonesia
- Pre-populated Input Input in the e-Faktur application
- Application of Community Housing Savings (TAPERA)
Tax Update May 2020
Due to the increasingly impact of Corona Virus Disease 19 (“Covid-19”) to many sectors including the medium and small entrepreneur, the tax incentive should be extended. It is considered that the Ministry of Finance Regulation No.23/PMK.03/2020 (please see our news alert period March 2020) is not appropriate to the current situation.
The Ministry of Finance has issued a new regulation No. 44/PMK.03/2020 to extended many industry sectors that are entitled for tax incentives. In addition, there is also the incentive for small medium enterprise that is subject to 0.5% Final Income Tax. The MoF-44 is effectively applied starting 27 April 2020.
Tax Update April 2020
The Government has issued a regulation in lieu of law No. 1 year 2020 ("GR-1/2020"). The GR-1/2020 regulates several taxation policies for the relaxation of tax obligations and new treatment of digital transaction as follows:
1.The reduction of Corporate Income Tax rate for Corporate Taxpayer and Permanent Establishment.
2.The tax treatment for the digital transactions from offshore to Indonesia.
3.The extension of deadline for the fulfillment of taxation rights and obligations.
4.Customs facilities for the reduction or exemption of Customs Duty for import transactions.
Tax Update March 2020
The Ministry of Finance has issued the Regulation No. 23/PMK.03/2020 ("MoF-23") to provide the tax incentives for several type of taxes, i.e. Income Tax Art. 21, Income Tax Art. 22, Income Tax Art. 25, and the VAT.
The purpose is to maintain the stability of economic growth, people purchasing power, and productivity in the certain sectors due to the pandemic of corona virus. The MoF-23 is effectively applied starting 1 April 2020.
Tax Update December 2019
The Directorate General of Tax recently issued a Publication for the draft Omnibus Tax Law to strengthen the Indonesian economy. The background of Omnibus Tax Law is due to the global economic slowdown, potential Indonesian economic stagnation, and the unoptimized Indonesia’s Investment Competitive Index.
In the draft Omnibus Tax Law, there are several tax facilities, e.g. reduction of Corporate Income Tax rate, territorial system for the individual taxpayer, relaxation on the claimable Input VAT, tax holiday, etc.
Tax Update November 2019
As of December 2018, the Directorate General of Tax has updated the list of countries having Qualifying Competent Authority Agreement (QCAA) for the exchange of Country by Country Report (CbCR) with Indonesia.
Tax Update October 2019
The Tax Update October 2019 covers the following regulations:
- Ministry of Finance Regulation No. 128/PMK.010/2019 regarding the deduction on gross income for the intership program and/or vocational training program in certain competencies.
- Directorate General of Tax Regulation No. 599/PJ/2019 regarding the updates of taxpayers who should apply electronic withholding tax slip Art. 23 and/or Art. 26.
Tax Update September 2019
The Tax Update September 2019 covers the Ministry of Finance Regulation No. 117/PMK.03/2019 regarding the updates on the Low Risk VAT Entrepreneur entitled for Preliminary VAT Refund.