MoF Regulation No. 197/PMK.03/2015 dated November 2, 2015

DEDUCTION OF ADMINISTRATIVE SANCTION ON TAX ASSESSMENT LETTER, LAND AND BUILDING TAX ASSESSMENT LETTER, AND/OR TAX COLLECTION LETTER AS RESULT OF LAND AND BUILDING TAX INSPECTION, VERIFICATION OR RESEARCH

Based on taxpayer request, DGT may reduce administrative sanction on tax assessment letter (SKP), land and building tax assessment letter (SKP PBB) and/or tax collection letter (STP) issued in 2015 as result of land and building tax inspection, verification or research due to taxpayer imprudence or not their fault.
Taxpayer may apply such request to DGT with following condition:

1. Pay tax shortage in 2015 SKP when requested SKP, or SKP related to STP is underpayment tax assessment letter (SKPKB) or additional underpayment tax assessment letter (SKPKBT);
2. Pay full amount of land and building tax (PBB) or its difference in 2015 SKP PBB;
3. Do not apply any tax legal action for administrative sanction reduction on:
   1. SKP, SKP PBB or STP
   2. SKP on goods and services VAT when its related STP already applied for administrative sanction reduction
   3. STP on goods and services VAT when its related SKP already applied for administrative sanction reduction
4. Not in any process of administrative sanction reduction or annulment other than regulated in this regulation.

Considered as tax legal action are:

1. Objection;
2. SKP/SKP PBB reduction or cancellation;
3. STP reduction or cancellation;
4. Cancellation of PBB inspection result, verification or research and/or;
5. Pleading

Such request must meet following condition:

1. One request for one SKP, SKP PBB or STP;
2. Written in Indonesia Language;
3. Sign by taxpayer, proxy is not allowed;
4. Submitted to tax office where taxpayer is registered and/or taxable entrepreneur is confirmed or PBB object is administered.

 Such request also should be attached with following documents:

1. Copy of SKP, SKP PBB or STP;
2. Copy of tax payment form or any other similar document as evidence of payment of:
   1. Principal tax in SKP for SKPKB or SKPKBT
   2. Principal tax in PBB or its difference in SKP PBB
3. Copy of former administrative sanction reduction decision letter, for SKP, SKP PBB or STP which has already applied for administrative sanction reduction request;
4. Stamped duty statement letter which state any administrative sanction in SKP, SKP PBB or STP as result of inspection or verification or finding of PBB inspection or research process is due to taxpayer imprudence or not their fault; and
5. Stamped duty statement letter which state no other tax legal action is taken to requested SKP, SKP PBB or STP.

Standard format for statement letter is available in the attachment of this regulation.

DGT will review taxpayer request whether it meets all requirements or not, when it meets all requirements DGT will issue administrative sanction reduction decision letter, if it does not meet the requirement such request will be returned to taxpayer.

When taxpayer does not pay any principal tax as above mentioned or take any tax legal action taxpayer cannot reapply for the sanction reduction, should the reason is shortage of document taxpayer may reapply it.

Such decision will reduce 50% of administrative sanction in SKP, SKP PBB or STP and will be issued within 6 months since the date of application received.
When DGT does not issue any decision or return the application to taxpayer within 6 months, such request is considered as approved.

When taxpayer request administrative sanction reduction and in 2015 pay tax shortage in SKP or PBB or its difference in SKP PBB, tax collection action to SKP, SKP PBB and/or STP is postponed.

When taxpayer already paid more than 50% of administrative sanction in SKP, SKP PBB or STP, any excess fund after reduction of administrative sanction will be considered as tax overpayment.

When taxpayer takes any tax legal action after issuance of administrative sanction reduction decision letter relating to its SKP, SKP PBB or STP, such decision letter will be revised ex-officio so the amount will return to its original administrative sanction.

At the effective date of this regulation:

1. Taxpayer cannot apply for administrative sanction reduction under this regulation when subsequently there were any request which already received decision letter twice;
2. Taxpayer may apply for administrative sanction reduction under this regulation when subsequently there was a rejection letter from DGT for such request before the effectiveness of this regulation;
3. Taxpayer may apply for administrative sanction reduction under this regulation when subsequently there was a less than 50% reduction decision letter to administrative sanction before the effectiveness of this regulation;
4. Taxpayer cannot apply for administrative sanction reduction under this regulation when subsequently there was a 50% or more reduction decision letter to administrative sanction before the effectiveness of this regulation;

This regulation will be effective at the promulgation date.