Tax Inspection: Tax Audit and Tax Agency | Indonesia Tax Guide 2025 (39)
Indonesia
Tax Audit
Tax audit
Tax agency
2025-03-10 08:42:27
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This issue's introduction
Tax agency of tax inspection
Legal liability of tax inspection
Tax Administration Agency
Tax inspection and tax audit
In order to check taxpayers' tax compliance, the tax bureau has the right to conduct tax audits on taxpayers.
The taxpayer being audited must provide records and documents related to its books of accounts, business activities and assist the inspector in entering its business premises for inspection.
(1) Management, including persons who have explicit authority to participate in the formulation of corporate policies or make corporate operating decisions;
(2) The institution that declares corporate bankruptcy;
(3) Individuals or institutions designated to resolve disputes;
(4) The institution that conducts corporate liquidation;
(5) Estate administrators or testamentary agents;
(6) Guardians of minors.
Taxpayers may also appoint an agent with a special power of attorney to perform rights and obligations on their behalf in accordance with the tax law.
The above agent shall bear or share with the taxpayer any unpaid taxes, unless the agent can prove that he or she is not responsible for the taxes.
If the tax bureau issues a "Tax Assessment Letter for Underpayment of Taxes", the taxpayer is obliged to pay the tax and late payment fees in accordance with the provisions of the law.
In the following cases, the tax bureau will charge the taxpayer a 2% late payment fee every month:
① The taxpayer fails to prepay the tax in full on a monthly basis;
② The tax is not paid in full before the annual tax deadline.
The above-mentioned late payment fees paid by the taxpayer shall not be deducted before tax when calculating income tax. If the tax bureau makes an error in the assessment of the tax to be paid, the taxpayer has the right to request the tax bureau to return the tax and add interest at a monthly rate of 2%.
If the taxpayer fails to file a return on time, the tax bureau may impose the following fines:
(1) A fine of 500,000 rupiah for overdue monthly VAT returns;
(2) A fine of 100,000 rupiah for overdue monthly returns of other taxes;
(3) A fine of 1 million rupiah for overdue corporate annual income tax returns;
(4) A fine of 100,000 rupiah for overdue personal annual income tax returns;
(5) Those who evade taxes by making false declarations may be sentenced to imprisonment of up to one year and a fine of twice the amount of tax evaded.
More exciting news in the next issue...