Tax Inspection and Tax Assessment | Indonesian Tax Guide 2025 (37)
Indonesia
Tax Assessment
2025-03-06 09:29:18
Page view：480
This issue's introduction
Tax inspection and tax assessment
Tax Administration Agency
(1) Types of tax assessment letters
① Overpayment assessment letter - the amount of tax payable due is less than the amount of tax deduction;
② Tax payable assessment letter - the amount of tax payable due exceeds the amount of tax deduction;
③ No tax adjustment assessment letter - the amount of tax payable due is equal to the amount of tax deduction.
If a tax payable assessment letter is issued, it may include one of the following administrative penalties.
① Interest is calculated based on the monthly interest rate (MIR) plus the additional interest rate spread, with a maximum term of 24 months. The calculation method varies in different situations, as follows:
A. Tax payable for overdue monthly tax bills: (MIR+5%)/12;
B. Voluntary disclosure before the tax bureau issues a tax adjustment assessment letter during the audit stage: (MIR+5%)/12
C. Tax deficiency certificate (SKPKB) issued after tax audit: (MIR+15%)/12:D. Tax adjusted by overdue tax deficiency certificate: MIR/12.
② 50% of income tax payable;
③ 100% of withholding tax payable;
④ 100% of value-added tax and luxury goods sales tax payable.
The penalty measures for taxpayers depend on the specific violations. The penalty amount is based on the tax payable and calculated according to the corresponding applicable interest rate.
In addition to issuing tax assessments based on tax audits, the tax bureau may also issue voluntary tax assessment letters to taxpayers who ignore warnings to submit tax returns within the prescribed time or fail to maintain books of accounts in accordance with prescribed standards.
(2) Payment deadline
Taxpayers are required to pay the tax due within one month after the tax assessment letter is issued. If the taxpayer fails to pay on time and does not raise an objection, the tax due will be levied by a seizure order.
(3) Statute of limitations
According to the current Tax Administration Law, the tax bureau may issue a tax due assessment letter for a certain tax period (month) or (part of) a tax year within five years after the tax obligation arises starting from 2008.
If a tax assessment letter is issued for a specific tax matter in a specific month or year, the tax bureau may still issue additional tax assessment letters within a specific period for new data not disclosed (or not fully disclosed) in the tax return or for tax audits.
If the tax bureau issues an additional tax due assessment letter, the taxpayer will be fined 100% of the tax due.
However, if the Taxation Bureau issues an additional tax assessment letter based on the information voluntarily disclosed by the taxpayer before the Taxation Bureau issues an additional tax assessment letter based on the tax audit, the taxpayer will be exempt from the penalty.
If the Taxation Bureau does not issue a tax assessment letter within a certain period, the tax payable reported in the tax return will be deemed as the final tax payable by the taxpayer.
However, if the taxpayer is found to have committed a tax crime after a certain period, the Taxation Bureau may still issue a tax assessment letter or an additional tax assessment letter after the prescribed period based on a court judgment. The assessment letter issued in this case will include a penalty of 48% of the tax payable.
The excitement continues in the next issue...