MINISTRY OF FINANCE OF THE REPUBLIC OF INDONESIA
(copy)
MINISTERIAL DECREE OF FINANCE OF THE REPUBLIC OF INDONESIA Number: 118/PMK.03 Year 2016
Concerning
THE IMPLEMENTATION OF LAW NUMBER 11 YEAR 2016 ON TAX AMNESTY
BY THE GRACE OF GOD ALMIGHTY
MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA,
Considering that in order to implement the stipulations of Article 24 letters a, b, d, and e of Law Number 11 Year 2016 on Tax Amnesty, it shall be necessary to enact a Ministerial Decree of Finance on the implementation of Law Number 11 Year 2016 on Tax Amnesty;
Referring to in 1. Law Number 11 Year 2016 on Tax Amnesty (State Gazette of the Republic of Indonesia Year 2016 Number 131, Supplement to State Gazette of the Republic of Indonesia Number 5899);
2. Law Number 7 Year 1983 on Income Tax (State Gazette of the Republic of Indonesia Year 1983 Number 50, Supplement to State Gazette of the Republic of Indonesia Number 3263) as having been amended for several times and the latest amendment by Law Number 36 Year 2008 on the Fourth Amendment of Law Number 7 Year 1983 on Income Tax (State Gazette of the Republic of Indonesia Year 2008 Number 133, Supplement to State Gazette of the Republic of Indonesia Number 4893);
DECIDES
To Enact Indonesian Ministerial Decree of Finance on the Implementation of Law Number 11 Year 2016 on Tax Amnesty
CHAPTER I GENERAL PROVISION
Article 1 In this Indonesian Ministerial Decree what is meant by:
1. Law on Tax Amnesty shall be Law Number 11 Year 2016 on Tax Amnesty.
2. Tax Amnesty shall be the removal of tax payable by not imposing an administrative sanction of taxation and criminal sanction in the sector of taxation, as long as there is an intention to reveal the assets and pay Compensation Money (Redeem) as regulated in the prevailing Law on Tax Amnesty.
3. Taxpayer shall be an individual or an entity that has right and obligation of taxation as in compliance with the prevailing laws and regulations of taxation in Indonesia.
4. Assets shall be the accumulation of additional economic capacity in form of all assets, either the tangible or intangible assets, either the movable or immovable assets, used for either business or non-business, located in and/or outside the territory of the Unitary State of the Republic of Indonesia.
5. Liabilities shall be the principal amount of liabilities that have yet to be settled/ paid in regard of direct acquirement of assets.
7. Tax Payable (Tax Payment in Arrears) shall be a principal amount of tax that has yet to be settled or paid as referring to a Letter of Tax Notice (Tax Claim) in which is stated the principal amount of tax payable, and also referring to a letter of notice on under-payment of tax, a letter of notice on additional under-payment of tax, a letter of decision on correction, a letter of decision on objection, a verdict of appeals and a verdict on legal review that may cause the amount of tax payable to become greater including the amount of tax that should not be returned, as regulated in Law on General Stipulations and Procedure of Taxation.
8. Compensation Money (Payoff) or Redeem shall be an amount of money paid to the State Treasury in light of Tax Amnesty.
9. Crime in Taxation shall be the crime as regulated in Law on General Stipulations and Procedure of Taxation.
10. Letter of statement on assets for tax amnesty, hereinafter referring to Letter of Statement shall be a letter (document) that is used by taxpayer to report the assets, liabilities, net value of assets, and the calculation of Compensation Money (Redeem).
11. Minister shall e the Mi iste ho is i ha ge of go e e tal affai s i “tate’s finance.
12. Letter of Advice on Tax Amnesty, hereinafter referring to Letter of Advice shall be a letter issued by Minister as an evidence for Tax Amnesty.
13. Letter of Notice on the Latest Annual Income Tax hereinafter referring to the Latest SPT PPh shall be:
a. Letter of Notice on Annual Income Tax for Fiscal Year 2015 of the taxpayer, of which the book year ended in a period from July 1, 2015 through December 31, 2015; or
b. Letter of Notice on Annual Income Tax for Fiscal Year 2014 of the taxpayer, of which the book year ended in a period from January 1, 2015 through June 30, 2015.
14. Letter of Notice on Annual Income Tax shall be the Letter of Notice on Income Tax for a fiscal year or part of the fiscal year.
15. Management of Data and Information shall be a system of administration of data and information of Tax Payer in light of Tax Amnesty, of which is managed by Minister.
16. Regional Office of Directorate General where the tax payer is registered and hereinafter referring to Regional Office of DJP of Registered Taxpayer shall be a regional office of Directorate General of Taxation whose scope of work area includes Office of Taxation (tax services) where the taxpayer is obliged to fulfill the requirement on taxation concerning Corporate Income Tax or Individual Income Tax.
17. Office of Taxation (tax services) where the taxpayer is registered and hereinafter referring to KPP of Registered Taxpayer shall be the office of taxation where the taxpayer is obliged to fulfill the requirement on taxation concerning Corporate Income Tax or Individual Income Tax.
18. Bank of Perception shall be a commercial bank assigned by Minister to receive the payment of “tate’s e e ues and based on the Law on Tax Amnesty it is assigned to receive the Compensation Money (Redeem or Payoff) and/ or the fund repatriated into the territory of the Unitary State of the Republic of Indonesia in light of the implementation of Tax Amnesty.
CHAPTER II
SUBJECT AND OBJECT OF TAX AMNESTY Article 2
(1) Every tax payer shall have the right to Tax Amnesty.
(2) The taxpayer that has the right to Tax Amnesty as cited in paragraph (1) shall be the tax payer who is obliged to submit the letter of notice on annual income tax.
(3) In case the taxpayer as cited in paragraph (1) has yet to have an index number of taxpayer (NPWP), the taxpayer shall conduct a previous registration in order to obtain an NPWP at the office of taxation whose work area covers the place of living or domicile of the taxpayer.
(4) Excluded from the stipulations as cited in paragraph (2) shall be the taxpayer who is currently:
a. in a process of investigation and the document of investigation has been declared complete by the office of attorney;
b. in the process of trial at court; or
c. in the process of criminal punishment,
for any of crimes of taxation.
Article 3
(1) Tax Amnesty as cited in Article 2 paragraph (1) shall be granted to taxpayer who reveals the ownership of assets as stated in the letter of statement.
(2) Tax Amnesty as cited in paragraph (1) shall include the removal of tax payable up to the end of the latest fiscal year, of which has not been paid or not fully paid by taxpayer.
(3) Tax payable as cited in paragraph (2) shall include the payables as follows:
a. Income Tax; and
b. Value-added tax (VAT) or VAT and tax of sales of luxurious goods.
CHAPTER III LETTER OF STATEMENT
Article 4
(1) In order to be granted the tax amnesty, the Letter of Statement as cited in Article 3 paragraph (1) shall be submitted to Minister through KPP where Taxpayer is registered or in a certain place.
(2) The Letter of Statement as cited in paragraph (1) shall at least include the information of the identity of taxpayer, assets, liabilities, net value of assets, and the calculation of Compensation Money (Redeem), of which shall be prepared in a format as cited in Appendix letter A of this Ministerial Decree.
Article 5
Information about the identity of taxpayer as cited in Article 4 paragraph (2):
1. name;
2. address;
3. index number of taxpayer (NPWP);
4. index number of citizenship;
5. number of passport, if any; and
6. number of document of business permit, for a person who is obliged to own as in compliance with the prevailing laws and regulations;
b. for entity as Taxpayer, shall include:
1. name;
2. address;
3. index number of taxpayer (NPWP);
4. number of document of business permit;
Article 6
(1) The assets as cited in Article 4 paragraph (2) shall include:
a. the assets that have been reported in the latest SPT PPh; and
b. additional assets that have not been reported or not been fully reported in the latest SPT PPh.
(2) The assets that have been reported in the latest SPT PPh as cited in paragraph (1) letter a shall be in denomination of Rupiah based on the value as reported in the latest SPT PPh.
(3) Additional assets that have not been reported or not been fully reported in the latest SPT PPh as cited in paragraph (1) letter b shall be in denomination of Rupiah based on:
a. nominal value of asset in form of cash; or
b. normal value of assets except cash at the end of the latest fiscal year.
(4) In case that the taxpayer is obliged to submit a Letter of Notice of Annual Income Tax not in denomination of Rupiah, the value of assets as cited in paragraph (2) shall be later on determined in the currency of Rupiah based on the exchange rate as determined by Minister for the sake of calculation of tax on the date at the end of the latest fiscal year of the latest SPT PPh.
(5) In case that the value of additional assets as cited in paragraph (3) is not in the denomination of Rupiah, the value of additional assets shall be later on determined in the currency of Rupiah based on:
a. nominal value of the cash as asset; or
b. normal value at the end of the latest fiscal year of the assets except Cash,
of which shall be based on the exchange rate as determined by Minister for the sake of calculation of tax at the end of the latest fiscal year.
Article 7
(1) The liabilities as cited in Article 4 paragraph (2) shall include:
a. the liabilities that have been reported in the latest SPT PPh; and
b. the liabilities that have not been reported in the latest SPT PPh, of which are directly related to the acquirement of additional assets as cited in Article 6 paragraph (1) letter b.
(2)The liabilities that have been reported in the latest SPT PPh as cited in paragraph (1) letter a shall be in denomination of Rupiah based on the value that is reported in the latest SPPT PPh.
(3) The liabilities that are directly related to the acquirement of additional assets as cited in paragraph (1) letter b shall be in denomination of Rupiah based on the value that is reported in the list of liabilities of the latest fiscal year.
(4) In case that the taxpayer is obliged to submit a letter of notice of annual PPh not in denomination of Rupiah, the value of liabilities as cited in paragraph (2) shall be later on determined in the currency of Rupiah based on the exchange rate as determined by Minister for the sake of calculation of the tax at the end of the date of the latest fiscal year of the latest SPT PPh.
(5) In case that the value of liabilities that are directly related to the acquirement of additional assets as cited in paragraph (3) not in denomination of Rupiah, the value of liabilities shall be later on determined in denomination of Rupiah based on the exchange rate as determined by Minister for the sake of calculation of the tax at the end of the latest fiscal year.
(6) The liabilities that are directly related to the acquirement of additional assets as cited in paragraph (1) letter b shall be the liabilities, of which can be legally confirmed about the fact and existence of the liabilities that are directly related to the acquirement of additional assets.
Article 8
(1) The net value of assets as cited in Article 4 paragraph (2) shall be calculated based on the value of additional assets that have not been reported or have not been fully reported in the latest SPT PPh as cited in Article 6 paragraph (3) and Article 6 paragraph (5) minus the value of liabilities as cited in Article 7 paragraph (5).
(2) In calculating the value of liabilities that are directly related to the acquirement of additional assets, of which can be calculated as the factor of deduction of the value of assets as cited in paragraph (1), and there will be requirements as follows:
a. for corporate taxpayer (entity), the liabilities that can be used as deduction shall be maximal 75% (seventy five percent) of the value of each additional asset that is directly related; or
b. for individual taxpayer, the liabilities that can be used as deduction shall be maximal 50% (fifty percent) of the value of each additional asset that is directly related
to the acquirement of the additional assets.
(3) The net value of assets as cited in paragraph (1) shall be used as the basis of payment of Compensation Money (Redeem).
Article 9
The Compensation Money (Redeem) as cited in Article 4 paragraph (2) shall be calculated by multiplying the tariff of Compensation Money with the basis of the payment/ imposition of Compensation Money as cited in Article 8 paragraph (3) or Article 8 paragraph (4).
Article 10
(1) The tariff of Compensation Money (Redeem) as cited in Article 9 of:
a. the assets located inside the territory of the Unitary State of the Republic of Indonesia; or
b. the assets located outside the territory of the Unitary State of the Republic of Indonesia that are repatriated into the territory of the Unitary State of the Republic of Indonesia and invested in the territory of the Unitary State of the Republic of Indonesia in a period of no shorter than 3 (three) years as of the time of repatriation,
shall be as follows:
1. 2% (two percent) in the period of submission of the letter of statement as of the date of the effectiveness of Law on Tax Amnesty up to September 30, 2016;
2. 3% (three percent) in the period of submission of the letter of statement from October 1, 2016 through December 31, 2016; and
3. 5% (five percent) in the period of submission of the letter of statement from January 1, 2017 through March 31, 2017.
(2) The tariff of Compensation Money (Redeem) as cited in Article 9 of the assets outside the territory of the Unitary State of the Republic of Indonesia that are not repatriated into the territory of the Unitary State of the Republic of Indonesia shall be as follows:
a. 4% (four percent) in the period of submission of the letter of statement as of the effectiveness of Law on Tax Amnesty up to September 30, 2016;
b. 6% (six percent) in the period of submission of the letter of statement from October 1, 2016 through December 31, 2016; and
c. 10% (ten percent) in the period of submission of the letter of statement from January 1, 2017 through March 31, 2017.
(3) The tariff of Compensation Money (Redeem) as cited in Article 9 for taxpayer whose business turnover is up to Rp4,800,000,000 (four billion eight hundred million rupiah) shall be as follows:
a. 0.5% (point five percent) for the taxpayer who reveals the value of assets amounting up to Rp10,000,000,000 (ten billion) as stated in the letter of statement; of
b. 2% (two percent) for the taxpayer who reveals the value of assets amounting more than Rp10,000,000,000 (ten billion) as stated in the letter of statement,
in the period of submission of the letter of statement in the first month as of the effectiveness of the law on tax amnesty up to March 31, 2017.
(4) Assets as cited in paragraph (3) letters a and b shall be all of the assets of the taxpayer as cited in Article 6 paragraph (1).
CHAPTER IV
Article 11
(1) Taxpayer whose business turnover amounting up to Rp4,800,000,000 (four billion eight hundred million rupiah) as cited in Article 10 paragraph (3) shall be regarded as a taxpayer who:
a. owns a business turnover derives from a source of income from the business operation; and
b. does not receive income from job based on work relationship and/ or freelance job.
(2) The freelance job as cited in paragraph (1) letter b shall be a job conducted by an individual with specific skills that are used for the basis of business to make income that is not legally bound by the work relationship, such as medical doctor (physician), notary, accountant, architect, or lawyer.
Article 12
The business turnover as cited in Article 10 paragraph (3) shall be determined based on:
a. the letter of statement on the amount of business turnover, of which contains the record of business turnover of Taxpayer from January through December in the fiscal year 2015, for a taxpayer who has yet to have the obligation to submit a letter of notice on annual income tax; or
b. The latest SPT PPh of taxpayer who already has the obligation to submit a letter of notice on annual income tax.
CHAPTER V
REQUIREMENT AND PROCEDURE ON SUBMISSION OF LETTER OF STATEMENT Article 13
(1) Taxpayer who submits a letter of statement as cited in Article 4 paragraph (1) shall fulfill the requirements as follows:
a. to have index number of taxpayer (NPWP);
b. to pay Compensation Money (Redeem);
c. to fully settle the payment of Tax Payable (tax payment in arrears);
d. to fully pay the tax that is unpaid or under-paid or the amount that should not be returned to the taxpayer who is currently in a process of inspection of preliminary evidences and/ or investigation of crime in taxation;
e. to submit the latest SPT PPh for taxpayer who already has the obligation to submit a letter of notice on annual income tax; and
f. to revoke a request and/ or a proposal for:
1. the return of the excess of amount of tax payment;
2. the reduction or the removal of administrative sanction as stated in the document of determination on taxation and/ or the document on tax claim;
3. the reduction or the cancellation of the document of determination on incorrect tax;
5. objection;
6. the correction of document on tax claim, the document on determination of tax and/ or letter of decision;
7. appeals;
8. lawsuit; and/ or
9. legal review,
In case that the taxpayer is currently submitting a letter of request and/ or proposal and the letter of decision or decision has not been issued yet.
(2) For taxpayer who has intention to repatriate additional assets into the territory of the Unitary State of the Republic of Indonesia, in addition to the fulfillment of the requirements as cited in paragraph (1), the taxpayer shall be obliged to:
a. repatriate the additional assets into the territory of the Unitary State of the Republic of Indonesia through Bank of Perception and invest the additional assets into the territory of the Unitary State of the Republic of Indonesia for at least 3 (three) years:
1. before December 31, 2016, for taxpayer who chooses to use the tariff of Compensation Money (Redeem) as cited in Article 10 paragraph (1) letter b points 1 and 2; and/ or
2. before March 31, 2017, for taxpayer who chooses to use the tariff of Compensation Money (Redeem) as cited in Article 10 paragraph (1) letter b point 3; and
b. attach the letter of statement on the repatriation and investment of additional assets as cited in letter a by using a format of sample as cited in Appendix letter B of this Ministerial Decree.
(3) In case the taxpayer has an intention to repatriate the additional assets into the territory of the Unitary State of the Republic of Indonesia as cited in paragraph (2), the additional assets from outside the territory of the Unitary State of the Republic of Indonesia shall be repatriated into the territory of the Unitary State of the Republic of Indonesia through the branch of Bank of Perception abroad for a period of no shorter than 3 (three) years since the taxpayer has placed the additional assets in the Bank of Perception abroad.
(4) The branch of Bank of Perception abroad as cited in paragraph (3) shall repatriate the additional assets to the Bank of Perception in Indonesia no later than another work day as of the placement of the additional assets in the branch of Bank of Perception abroad.
(5) For taxpayer who reveals the additional assets located in/ or placed in the territory of the Unitary State of the Republic of Indonesia, in addition to the fulfillment of requirements as cited in paragraph (1), the taxpayer:
a. shall not be allowed to relocate the additional assets outside the territory of the Unitary State of the Republic of Indonesia for at least 3 (three) years as of the issuance of the Letter of Statement; and
b. shall be obliged to attach a letter of statement on no intention to relocate the additional assets from inside the territory of the Unitary State of the Republic of Indonesia to outside the territory of the Unitary State of the Republic of Indonesia as cited in letter a by using a format of sample as cited in Appendix letter C of this Ministerial Decree.
a. the evidence of payment of Compensation Money (Redeem) in form of document of tax payment or a e eipt of “tate’s e e ues;
b. the evidence of full settlement of the payment of Tax Payable in form of document of tax payment or a receipt of State’s e e ues a d/ o a document on non-tax payment including a list of payments in arrears, for the taxpayer who has the payments in arrears;
c. the list of details of assets by using a format of sample as cited in Appendix letter D of this Ministerial Decree including the information about the ownership of the assets as reported;
d. the list of liabilities by using a format of sample as cited in Appendix letter D of this Ministerial Decree including the supporting documents;
e. the evidence of full settlement of unpaid tax, underpaid tax or the amount that should not be returned to taxpayer in form of:
1. document of tax payment; or
. e ide e of e eipt of “tate’s e e ues,
For the taxpayer who is currently in a process of inspection of preliminary evidences and/ or investigation of crimes in taxation, including a written notice from Director General of Taxation through the head of unit for the implementation of inspection of preliminary evidences or the head of unit of investigation;
f. the photocopy of the latest SPT PPh or the duplication in form of a print-out of the latest SPT PPh that is electronically submitted, for the taxpayer who has the obligation to report a letter of notice on annual income tax; and
g. the letter of statement on the revoke of request and/ or proposal as cited in paragraph (1) letter f, by using a format of sample as cited in Appendix letter E of this Ministerial Decree.
(7) For taxpayer who chooses the tariff of Compensation Money as cited in Article 10 paragraph (3), in addition to the attachment of documents as cited in paragraph (5) letter b and paragraph (6), the taxpayer shall be obliged to submit a letter of statement on the amount of business turnover by using a format of sample as cited in Appendix letter F of this Ministerial Decree.
(8) For taxpayer with a business turnover as cited in Article 12 and has submitted the latest SPT PPh, the latest SPP PPh shall be used as a substitution of the letter of statement on business turnover as cited in paragraph (7).
(9) In case the taxpayer owns indirect assets by a means of special purpose vehicle (SPV), the taxpayer shall be obliged to reveal the ownership of assets and liabilities that are directly related to the acquirement of assets as depicted in the list of details of assets and liabilities as cited in paragraph (6) letters c and d.
(10) The list of details of assets as cited in paragraph (6) letter c and the list of details of liabilities as cited in paragraph (6) letter d shall be submitted in form of softcopy and hardcopy.
Article 14
(1) The submission of the letter of statement shall meet the requirements as follows:
a. it is submitted by using a format based on the requirement as cited in Article 4 paragraph (2);
1. Taxpayer as an individual and it cannot be authorized to a proxy;
2. the top person in charge based on the Deed of Establishment of entity or another equal document, for a corporate taxpayer; or
3. a proxy, in case that the top person in charge as cited in point 2 is not in attendance (absent).
c. it is directly handed over by Taxpayer or the proxy of Taxpayer to:
1. KPP where the taxpayer is registered; or
2. certain place;
d. it shall be attached with a letter of authorization in case:
1. the letter of statement is signed with signature by the proxy as cited in letter b point 3;
2. the taxpayer is unable to directly handover the letter of statement as cited in letter c; and
e. it is submitted in a period as of the effectiveness of the law on tax amnesty up to March 31, 2017.
(2) The ea i g of di e tl ha ded o e as ited i pa ag aph lette is that the taxpayer shall directly come to KPP where the taxpayer is registered or certain place.
Ce tai pla e as ited i pa ag aph lette poi t i ludes:
a. Consulate General of the Republic of Indonesia in Hongkong;
b. Consulate General of the Republic of Indonesia in Singapore;
c. Consulate General of the Republic of Indonesia in London; and
d. Other certain places in addition to those cited in letters a,b, and c as determined by Minister, in case it is necessary to do for the support of the implementation of the law on tax amnesty.
(4) The ea i g of lette of autho izatio as ited i pa ag aph lette d shall be in accordance with the stipulations under the Codes of Civil Laws of Indonesia.
(5) Before submitting the letter of statement including the attachments as cited in Article 13 paragraph (6), the taxpayer shall ask for clarification on how to fill in and fulfill the completeness of documents that have to be attached in the letter of statement to be submitted to KPP where the taxpayer is registered and certain place as cited in paragraph (3).
(6) The official at KPP where the taxpayer is registered or the official of Director General of Taxation as assigned by Director General of Taxation in certain place as cited in paragraph (3), shall make sure about:
a. the completeness of the filling-in of the letter of statement as cited in Article 4 paragraph (2);
b. the completeness of the attachments to the letter of statement as cited in Article 13;
c. the appropriateness of filling-in of the letter of statement including the attachments to the letter of statement.
the ownership of assets in the report;
e. the correctness of the list of liabilities in the report when compared with the supporting documents;
f. the correctness of evidences of the full settlement of the payment of tax payable when compared with the list of details of tax payables in the administration of Directorate General of Taxation;
g. the correctness of the use of tariff of Compensation Money (Redeem);
h. the calculation and the full settlement of Compensation Money (Redeem); and
i. the correctness of evidences of the full settlement of payment of the tax payables for a taxpayer who is currently in a process of inspection of preliminary evidences and/ or investigation of crimes in taxation when compared with the written information provided by the head of unit of the implementation of inspection of preliminary evidences or the head of unit of the implementation of investigation.
(7) After asking for clarification as cited in paragraph (5), the taxpayer shall pay the Compensation Money (Redeem) and submit the letter of statement including the attachments.
(8) For taxpayer who has submitted the letter of statement including the attachments as cited in the stipulations of paragraph (6), a receipt of the letter of statement shall be given.
(9) In case the Letter of Statement:
a. is not directly handed over as cited in paragraph (1) letter c;
b. is not attached with the letter of authorization if the letter of statement is not directly handed over by the taxpayer as cited in paragraph (1) letter d; and/ or
c. is not complete and not appropriate as cited in paragraph (6),
the letter of statement shall be regarded not submitted (failed to be submitted) and the documents such as the letter of statement including the supporting documents shall be returned and a receipt is not given as cited in paragraph (8).
(10) Head of Regional Office of DJP where the taxpayer is registered shall issue a letter of advice based on the letter of statement, of which a receipt has been given as cited in paragraph (8).
CHAPTER VI
PAYMENT OF COMPENSATION MONEY (REDEEM) Article 15
(1) The Compensation Money (Redeem) as cited in Article 13 paragraph (1) letter b shall be fully settled and paid to the “tate’s T easu th ough Ba k of Pe eptio .
(2) The Compensation Money (Redeem) as cited in paragraph (1) shall be administratively filed under a name of other Income Tax of Non Oil and Gas.
(3) The payment of Compensation Money (Redeem) shall be put in a Code of Tax Account 411129 and a Code of Payment Type 512.
(4) In regard of the payment of Compensation Money (Redeem) as cited in paragraph (1) a document of tax payment and/ or a document of pa e t fo “tate’s Re e ues shall be used, of which is functioning as an evidence of payment for Compensation Money (Redeem) after obtaining validation.
cited in paragraph (4) shall be declared legitimate after having been validated by using a t a sa tio u e fo the pa e t of “tate’s e e ues as issued th ough a
odule o “tate’s e e ues.
(6) In case there is error in writing the code of tax account and/ or the code of payment type in the document of tax payment or in the e ide e of e ei i g “tate’s revenues, Director General of Taxation shall conduct a book transfer based on the code of tax account and the code of payment type as cited in paragraph (3).
CHAPTER VII
FULL SETTLEMENT OF PAYMENT OF TAX PAYABLES Article 16
(1) The tax payable that has to be fully settled by taxpayer as cited in Article 13 paragraph (1) letter c shall be in an amount of tax payment in arrears based on the document of tax collection (tax claim), the document on the determination of tax, the letter of decision, or the decision, of which are issued before the taxpayer has submitted the letter of statement.
(2) For the tax payment in arrears (tax payable) as cited in paragraph (1) shall be subject to conditions as follows:
a. the tax payment in arrears shall include the fee for the collection of tax payment imposed to the Taxpayer;
b. in case that the tax payment in arrears has been partly settled, the amount of tax payment in arrears shall be proportionally calculated between the principal amount of tax and the administrative sanction based on the data under the administrative system of Directorate General of Taxation;
c. in case that the data under the administrative system of Directorate General of Taxation as cited in letter b disclose no details about the calculation of the amount of administrative sanction, the amount of administrative sanction shall be 48% (forty eight percent) of the amount that has to be paid based on the document of tax claim or the document on determination of tax.
(3) The method of calculation of the tax payment in arrears (tax payable) on a proportional basis between the principal amount of tax and the amount of administrative sanction as cited in paragraph (2) letters b and c shall be based on the sample as cited in Appendix letter G of this Ministerial Decree.
CHAPTER VIII
FULL SETTLEMENT OF UNPAID OR UNDER-PAID AMOUT OF TAX OR THE AMOUNT OF TAX THAT SHOULD NOT BE RETURNED TO TAXPAYER WHO IS CURRENTLY IN A PROCESS OF INPSECTION OF PRELIMINARY EVIDENCES AND/ OR INVESTIGATION OF
CRIME IN TAXATION
Article 17
(1) in order to know the amount of tax that is unpaid or under-paid or the amount of tax that should not be returned, of which shall be fully settled by the taxpayer who is currently in a process of inspection of preliminary evidences and/ or investigation of crime in taxation as cited in Article 13 paragraph (1) letter d, prior to the submission of the letter of statement and the taxpayer shall be obliged to request for information in writing to Directorate General of Taxation through the head of unit of the implementation of inspection of preliminary evidences or investigation of crime in taxation, by using a format as cited in Appendix letter H of this Ministerial Decree.
(2) Head of unit of the inspection of preliminary evidences or the investigation of crime in taxation shall assign an inspector of preliminary evidences or an investigator to conduct the calculation as cited in paragraph (1).
evidences or investigator shall be allowed to ask for an opinion from expert.
(4) in regard of the request for information as cited in paragraph (1) some conditions shall apply as follows:
a. for the calculation as cited in paragraph (1) without a request for opinion from expert, the head of unit of the implementation of inspection of preliminary evidences or investigation of crime in taxation shall provide information in writing concerning the amount of tax that is unpaid or under-paid or the amount that should not be returned in a period of no more than 7 (seven) work days as of the date of receiving the request for information;
b. in regard that the calculation as cited in paragraph (1) is conducted by requesting for opinion from expert, the head of unit of the implementation of inspection of preliminary evidences or investigation of crime in taxation shall provide information in writing concerning the amount of tax that is unpaid or under-paid or the amount that should not be returned in a period of no more than 14 (fourteen) work days as of the date of receiving the request for information;
(5) The payment of the amount of tax that is unpaid or under-paid or the amount that should not be returned as cited in paragraph (4) shall be conducted by using a code of tax account 411129 and a code of payment type 513.
(6) In case that the taxpayer fails to fully settle the payment of the amount of tax that is unpaid or under-paid or the amount that should not be returned and fails to submit a letter of statement in a period of no more than 14 (fourteen) work days as of the date of providing the information in writing as cited in paragraph (4), some conditions shall apply as follows:
a. the information in writing as cited in paragraph (4) shall be no longer effective;
b. in case that the taxpayer still has intention to submit a letter of statement, the taxpayer shall be obliged to re-submit a request for information in writing as cited in paragraph (1).
(7) In case:
a. the taxpayer is currently in a process of inspection of preliminary evidences and with own intention has settled part or all of the amount of the tax payment in arrears (tax payable) including the amount of administrative sanction; or
b. the taxpayer is currently in a process of investigation of crime in taxation and has settled part or all of the amount of tax that is unpaid or under-paid or the amount that should not be returned plus the amount of administrative sanction,
as cited in Law on General Stipulations and Procedure of Taxation, some conditions shall apply as follows:
1. in case that the amount of tax as cited in letter a and/ or letter b is underpaid by the taxpayer as referring to the calculation of the amount based on the information in writing to Directorate General of Taxation as cited in paragraph (1), the taxpayer shall be obliged to settle the remaining amount of tax that is underpaid;
2. In case that the amount of tax as cited in letter a and/ or letter b is over-paid by the taxpayer as referring to the calculation of the amount based on the information in writing to Directorate General of Taxation as cited in paragraph (1), the excess of payment shall not be returned;
CHAPTER IX
(1) In case the taxpayer has obtained Index Number of Taxpayer (NPWP) before the year 2016 but has not reported the latest SPT PPh following the effectiveness of Law on Tax Amnesty, the conditions shall apply as follows:
a. The taxpayer shall be obliged to report the latest SPT PPh that depicts the assets in the Letter of Notice of Annual Income Tax, of which was reported prior to the submission of the latest SPT PPh before the effectiveness of Law on Tax Amnesty, plus the additional assets deriving from the income of the latest fiscal year; and
b. For taxpayer who obtained NPWP after the year 2015, the taxpayer shall not be obliged to attach a photocopy of the latest SPT PPh in the letter of statement.
CHAPTER X
REVOKE OF REQUEST AND/ OR PROPOSAL FOR LAWSUIT Article 19
(1) In light of tax amnesty the taxpayer shall revoke the request and/ or proposal of lawsuit as cited in Article 13 paragraph (1) letter f points 1,2,3,4,5 and 6, in which is inquired:
a. the return of the excess of tax payment;
b. the reduction or the cancellation of administrative sanction based on the letter of determination on tax and/ or the document of tax claim;
c. the reduction or the cancellation of the letter of determination on incorrect tax;
d. the reduction or the cancellation of document on the claim of incorrect tax;
e. the objection; and/ or
f. the correction of the document on tax claim, the letter of determination and/ or the letter of decision,
from the office of taxation where the request and/ or proposal of lawsuit shall be further processed by using a format of sample as cited in Appendix I of this Ministerial Decree.
(2) Including in the description of the return of the excess of tax payment as cited in paragraph (1) letter a shall be a book transfer of the excess of tax payment for the sake of correction of the letter of notice.
(3) The submission of request for the revoke of legal case such as appeals, lawsuit, and/ or legal review as cited in Article 13 paragraph (1) letter f points 7, 8 and 9 to the court of taxation, shall be conducted in compliance with the prevailing laws and regulations of taxation.
(4) The request for the revoke as cited in paragraphs (1) and (3) shall be submitted by the taxpayer prior to the submission of the letter of statement.
Article 20
(1) Based on the letter of statement on the revoke of request and/ or proposal of legal case, of which is attached in the letter of statement as cited in Article 13 paragraph (6) letter g, the taxpayer shall be considered to have revoked the request and/ or proposal of legal case as cited in Article 19 paragraphs (1) and (3) in the fiscal period, part of Fiscal Year, and Fiscal Year, up to the end of the latest fiscal year.
amount of tax payment in arrears (tax payable) shall be an amount of tax that has to be fully settled as cited in Article 13 paragraph (1) letter c.
CHAPTER XI LETTER OF ADVICE
Article 21
(1) In regard of the submission of the letter of statement, Head of Regional Office of DJP where the taxpayer is registered, shall issue a letter of advice in a period of no later than 10 (ten) work days as of the date of receiving the letter of statement, by using a format as cited in Appendix letter J of this Ministerial Decree and then deliver it to the taxpayer.
(2) In case the period of 10 (ten) work days as cited in paragraph (1) is over, Head of Regional Office of DJP where the taxpayer is registered has yet to issue a letter of advice, the letter of statement as submitted by the taxpayer shall automatically be acceptable as a letter of advice.
(3) in a period of no later than 3 (three) work days after the period as cited in paragraph (2) is over, Head of Regional Office of DJP where the taxpayer is registered shall issue a letter of advice.
(4) In case of:
a. mistake of writing in the letter of advice; and/ or
b. mistake of calculation in the letter of advice,
Head of Regional Office of DJP where the taxpayer is registered shall issue a letter of correction over the letter of statement.
CHAPTER XII
SUBMISSION OF THE SECOND AND THE THIRD LETTER OF STATEMENT Article 22
(1) The submission of each letter of statement by the taxpayer and of which is given a receipt of the letter of statement as cited in Article 14 paragraph (10), shall be regarded as 1 (one) time of submission of the Letter of Statement.
(2) Taxpayer shall be allowed to submit a letter of statement maximal for 3 (three) times in a period from the effectiveness of the law on tax amnesty up to March 31, 2017.
(3) In case the taxpayer has submitted the second or the third letter of statement in a period as cited in paragraph (2), the letter of statement shall be submitted before or after the letter of advice of the first or the second letter of statement that have previously been issued.
(4) The letter of statement as cited in paragraph (3) shall be submitted under condition that the taxpayer shall have included the net value of assets as cited in:
a. the letter of advice of the previous letter of statement; or
b. the previous letter of statement in case the letter of advice has not been issued.
(5) The submission of the second or the third letter of statement as cited in paragraph (3) shall be intended to give a chance for taxpayer as follows:
a. to reveal the additional assets that have not been reported in the letter of statement or the reduction of assets that has been reported in the letter of statement;
taxpayer is to revise the previous statement on the repatriation and investment of assets in the territory of the Unitary State of the Republic of Indonesia in order to make it a statement on intention to neither repatriate nor invest the assets in the territory of the Unitary State of the Republic of Indonesia in a period of time as determined and cited in Article 13 paragraph (2) letter a;
c. to reveal the revision of calculation of Compensation Money (Redeem), in case the taxpayer is to revise the previous statement on the repatriation and investment of assets in the territory of the Unitary State of the Republic of Indonesia in order to make it a statement on no intention to transfer or invest the assets to outside the territory of the Unitary State of the Republic of Indonesia in a period of time as determined and cited in Article 13 paragraph (5) letter a;
(6) In case the taxpayer submits the second and the third letter of statement that reveals the revision as cited in paragraph (5) letter a, the calculation of the amount of Compensation Money (Redeem) shall be under conditions as follows:
a. for the second and the third letter of statement in which are also revealed additional assets, the Compensation Money (Redeem) shall be calculated based on:
1. the difference between the net value of assets in the second and the third letter of statement and the previous letter of statement; or
2. the difference between the net value of assets in the second and the third letter of statement and the value in the previous letter of statement in case the letter of advice has not been issued yet,
by multiplying with a tariff in a period of submission of the second and the third letter of statement;
b. for the second and the third letter of statement of which causes the reduction of assets as revealed, consequently the excess of payment of Compensation Money (Redeem) and the return of the excess of payment of Compensation Money (Redeem) shall be calculated based on a tariff that is used in a period of time of the previous letter of statement.
(7) The method of calculation of the amount of Compensation Money (Redeem) as cited in paragraph (6) shall be based on the sample as cited in Appendix letter K of this Ministerial Decree.
(8) In case the taxpayer has submitted the second and the third letter of statement in which is revealed the revision as cited in paragraph (5) letters b and c, the previous tariff of Compensation Money (Redeem) as cited in Article 10 paragraph (1) shall be replaced with the tariff as cited in Article 10 paragraph (2).
CHAPTER XIII
FACILITY OF TAX AMNESTY Article 23
(1) The taxpayer for whom the letter of advice has been issued shall obtain the facility of tax amnesty such as :
a. the removal of tax payable (tax payment in arrears) of which the determination on tax has not been made, and there is no administrative sanction of taxation, and there is no criminal sanction of taxation, for the obligation of taxation in the fiscal period, part of fiscal year, and fiscal year, up to the end of the latest fiscal year;
c. no inspection of tax, inspection of preliminary evidences and investigation of crime in taxation, for the obligation of taxation in fiscal period, part of fiscal year, and fiscal year up to the end of the latest fiscal year; and
d. termination of inspection of tax, inspection of preliminary evidences and investigation of crime in taxation, in case the taxpayer is currently in a process of inspection of taxation, inspection of preliminary evidences, and investigation of crimes in taxation in regard of the obligation of tax, up to the end of the latest fiscal year,
of which is related to the obligation of taxation as cited in Article 3 paragraph (3).
(2) The termination of investigation as cited in paragraph (1) letter d shall be conducted by the government employee (PNS) as an inspector in the workplace of Directorate General of Taxation as instructed by the head of unit of investigation.
Article 24
(1) The taxpayer who has obtained a letter of advice and paid the Compensation Money (Redeem) for immovable assets such as land and/ or building, of which the transfer of ownership in the name of taxpayer has not been realized, shall be obliged to conclude the transfer of ownership in the name of the taxpayer.
(2) In regard of the transfer of ownership in the name of taxpayer as cited in paragraph (1) the taxpayer shall be freed from the imposition of income tax, in conditions as follows:
a. the request for the transfer of ownership; or
b. the signing with signatures of the letter of statement by both sides in front of Notary stating that the assets as cited in paragraph (1) letter a are duly owned by the taxpayer who submits the letter of statement, and in regard that the request for the transfer of ownership of assets cannot be realized yet,
shall have already been conducted/ concluded in a period of no later than December 31, 2017.
(3) The immovable assets in form of land and/ or building of which the transfer of ownership can be realized and freed from the imposition of income tax as cited in paragraph (2) shall be of the additional assets that have been obtained and/ or owned by the taxpayer before the end of the latest fiscal year.
(4) The income tax payable in regard of the transfer of ownership as cited in paragraph (2) shall be freed after having previously obtained the letter of advice on the removal of income tax deriving from the transfer of ownership of land and/ or building, of which is granted the facility of tax amnesty.
(5) The request for the letter of advice on the removal of income tax as cited in paragraph (4) shall be submitted by the taxpayer, who has previously obtained a letter of advice, to KPP where the taxpayer is registered prior to the transfer of ownership as cited in paragraph (1) by attaching:
a. the photocopy of the letter of advice;
b. the photocopy of the letter of notice on the payment in arrears of the tax of land and building in the latest year in regard of the transfer of ownership of assets.
c. the photocopy of document/ certificate of sale/ purchase/ grant of the assets with the transfer of ownership; and
(6) The letter of advice on the removal of income tax as cited in paragraph (4) shall state the removal of the payment in arrears of the income tax for the party who transfers the ownership of the immovable assets in form of land and/ or building and it shall be effective as long as it is used in a period of time as cited in paragraph (2).
Article 25
(1) The taxpayer who has obtained a letter of advice and paid the Compensation Money (Redeem) on the assets in form of shares, of which the ownership has not been transferred in the name of the taxpayer, shall conclude the transfer of ownership under the name of the taxpayer.
(2) The transfer of ownership as cited in paragraph (1) shall be excluded from the imposition of income tax in case there is an agreement on the transfer of ownership in a period of time of no later than December 31, 2017.
(3) The assets in form of shares subject to the transfer of ownership and the removal of the imposition of income tax as cited in paragraph (2) shall be of the additional assets that have been obtained and/ or owned by the taxpayer before the end of the latest fiscal year and of which has never been reported in the letter of notice on the annual income tax up to the latest SPT PPh.
(4) In order to be freed from the imposition of the payment in arrears of the income tax in regard of the transfer of ownership as cited in paragraph (2), the taxpayer shall submit a request for a letter of advice on the removal of income tax deriving from the income of the transfer of ownership of shares that is granted a facility of tax amnesty.
(5) The request for the letter of advice on removal of tax income as cited in paragraph (4) shall be submitted by the taxpayer, who has obtained a letter of advice, to the office of taxation by attaching:
a. the photocopy of the letter of advice;
b. the photocopy of the deed of establishment and the document of revision from the company whose shares are transferred; and
c. the letter of statement on the ownership of assets that have been legalized by the Notary.
(6)The letter of advice on the tax removal as cited in paragraph (4) shall state the removal of the payment in arrears of the income tax for the party who transfers the ownership of assets in form of shares and it shall be effective as long as it is used in a period of time as cited in paragraph (2).
Article 26
(1) In regard of the request for the letter of advice on the removal of income tax as cited in Article 24 paragraph (5) and Article 25 paragraph (5), in a period of no later than 5 (five) work days as of the date of completely receiving the request for the letter of advice on the removal of income tax, the Director General of Taxation shall issue a letter of advice on the removal of income tax deriving from the income of the transfer of ownership of land and/ or building or the transfer of ownership of shares that is subject to the grant of the facility of tax amnesty.
(2) In case that in a period of time as cited in paragraph (1) the Director General of Taxation fails to issue a letter of advice on the removal of income tax, the request as cited in Article 24 paragraph (5) and Article 25 paragraph (5) shall be regarded already approved and Director General of Taxation shall be obliged to issue a letter of advice on the removal of income tax in no later than 2 (two) work days as of the expiration of the period as cited in paragraph (1).
as cited in Article 24 paragraph (1) and Article 25 paragraph (1), the transfer of ownership shall then be subject to the imposition of tax as in compliance with the prevailing laws and regulations on income tax.
CHAPTER XIV
STATUS OF THE ISSUANCE OF DOCUMENT OF DETERMINATION ON TAX, DECISION LETTER, AND DECISION IN FISCAL PERIOD, PART OF FISCAL YEAR, AND FISCAL YEAR
BEFORE THE END OF THE LATEST FISCAL YEAR Article 27
(1) Document of determination on tax, letter of decision on preliminary return of the excess of tax payment, letter of decision on correction, letter of decision on reduction of tax as determined, letter of decision on cancellation of tax determination, letter of decision on objection, decision on appeals, decision on lawsuit, decision on legal review, in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year, of which have been issued before the taxpayer submits a letter of statement and there has yet to be the settlement of full payment, shall be used as a basis by:
a. Directorate General of Taxation in collecting the tax and/ or returning the excess of tax payment;
b. Taxpayer in compensating the fiscal loss; and
c. Taxpayer in compensating the excess of tax payment,
as in compliance with the prevailing laws and regulations in taxation.
(2) Document of determination on tax, letter of decision on preliminary return of the excess of tax payment, letter of decision on correction, letter of decision on reduction of the tax as determined, letter of decision on cancellation of tax determination, letter of decision on objection, decision on appeals, decision on lawsuit, decision on legal review, in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year, of which have been issued after the taxpayer submits a letter of statement, shall not be used as a basis by:
a. Directorate General of Taxation in collecting the tax and/ or returning the excess of tax payment;
b. Taxpayer in compensating the fiscal loss; and
c. Taxpayer in compensating the excess of tax payment.
(3) In case there are the letter of tax determination, the letter of decision on preliminary return of the excess of tax payment, letter of decision on correction, letter of decision on reduction of tax as determined, letter of decision on cancellation of tax determination, letter of decision on reduction of administrative sanction, letter of decision on removal of administrative sanction, letter of decision on objection, decision on appeals, decision on legal review, in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year, of which have been issued before the taxpayer has submitted a letter of statement and it causes the obligation for the payment of interest as a fine to Directorate General of Taxation, such an obligation shall be removed.
Article 28
(2) The document on tax claim, letter of determination on tax, the letters of decisions as cited in paragraph (1) shall be regarded as a document on tax claim, a letter of determination on tax, and letters of decisions in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year, of which are issued after the taxpayer has submitted a letter of statement.
(3) The cancellation of the document on tax claim, the letter of determination on tax, and the letters of decisions as cited in paragraph (1) shall be conducted after the taxpayer has received a letter of advice.
(4) The cancellation of the document on tax claim, the letter of determination on tax, the letters of decisions as cited in paragraph (1) shall be conducted by Head of Regional Office of Directorate General of Taxation on behalf of Director General of Taxation,
a. who makes the letter of decision; or
b. whose work area covers the office of taxation that issues the document on tax claim, the letter on tax determination and the letter of decision.
Article 29
(1) Director General of Taxation shall issue a letter (document) for the implementation of the decision on appeals, decision on lawsuit, and/ or decision on legal review concerning the rights and obligations of taxation in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year, of which are received by the taxpayer after having obtaining a letter of advice.
(2) In the letter (document) for the implementation as cited in paragraph (1) is stated that the decision cannot be used as a basis of:
a. collecting the tax and/or returning the excess of the tax payment;
b. compensating the fiscal loss; and/ or
c. compensating the excess of tax payment.
Article 30
For the taxpayer to whom is already issued a letter of advice, Director General of Taxation shall not submit a request for legal review on the court verdict in regard of the tax obligation in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year.
CHAPTER XV
REMOVAL OF ADMINISTRATIVE SANCTION OF TAXATION Article 31
(1) Director General of Taxation or the head of regional office of taxation based on the position shall annul the administrative sanction in form of interest and/or a fine that has not been paid, of which is stated in:
a. Document on Tax Claim;
b. Letter of Determination on Tax;
c. Letter of Decision; and
d. Decision,
(2) The administrative sanction as cited in paragraph (1) shall be an administrative sanction in form of interest, fine, an increase of payment as cited in Law on General Stipulations and Procedure of Taxation.
(3) The removal of the administrative sanction as cited in paragraph (2) shall be granted to the taxpayer after obtaining a letter of advice.
(4)The removal of the administrative sanction as cited in paragraph (2) shall be conducted by the head of regional office whose work area covers the office of taxation that is in charge of the administration of the removal of administrative sanction.
(5) Head of Regional Office based on the position (job title) shall issue a letter of decision on the removal of administrative sanction in regard of the tax amnesty.
(6) The letter of decision on the removal of administrative sanction that is made based on the position (job title) in light of the tax amnesty as cited in paragraph (5) shall be issued in regard of one or more legal products as cited in paragraph (1).
(7) In regard that the letter of advice has been issued but the document of tax claim in regard of the administrative sanction has not been issued, the administrative sanction shall be removed without the issuance of document of tax claim.
CHAPTER XVI
DEFERMENT, TERMINATION, CANCELLATION OF INPSECTION, INSPECTION OF PRELIMINARY EVIDENCES, AND INVESTIGATION
Article 32
(1) In case that the taxpayer who is currently in a process of inspection has obtained a receipt on the letter of statement as cited in Article 14 paragraph (8), the activity of inspection in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year shall be deferred.
(2) The deferment of inspection as cited in paragraph (1) shall be conducted as of the date of receiving the letter of statement up to the issuance of the letter of advice.
(3) In case the taxpayer has received a letter of advice, the activity of inspection shall be terminated as of the date of the issuance of the letter of advice.
(4) The termination of inspection shall be conducted by preparing a report on the termination of inspection for tax amnesty.
Article 33
(1) In case the taxpayer, who is currently in a process of inspection of preliminary evidences, has been given a receipt on the letter of statement as cited in Article 14 paragraph (8), the activity of inspection of preliminary evidences in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year shall be deferred.
(2) The deferment of the inspection of preliminary evidences as cited in paragraph (1) shall be conducted as of the date of receiving the letter of statement up to the date of issuance of the letter of advice.
(3) Based on the letter of advice the inspection of preliminary evidences shall be terminated under conditions as follows:
a. Head of Regional Office where the taxpayer is registered shall electronically submit the copy of the letter of advice to the head of unit of inspection of preliminary evidences;
c. The activity of making a review as cited in letter b shall be attended by the team of inspection of preliminary evidences and the team of review;
d. After making a review as cited in letter b the head of unit of the inspection of preliminary evidences shall issue a letter of notice for the sake of following up the inspection of preliminary evidences.
e. The head of unit of the inspection of preliminary evidences shall issue a letter of termination of the inspection of preliminary evidences in a period of 30 (thirty) work days after the issuance of the letter of advice.
Article 34
(1) In case the taxpayer, who is currently in a process of inspection of preliminary evidences, has been given a receipt on the letter of statement as cited in Article 14 paragraph (8), the activity of investigation in fiscal period, part of fiscal year, and fiscal year before the end of the latest fiscal year shall be deferred.
(2) The deferment of the investigation as cited in paragraph (1) shall be conducted as of the date of receiving the letter of statement up to the date of issuance of the letter of advice.
(3) Based on the letter of advice the investigation shall be terminated under conditions as follows:
a. Head of Regional Office where the taxpayer is registered shall electronically submit the copy of the letter of advice to the head of unit of investigation;
b. Based on the letter of advice the head of unit of the investigation shall instruct the team of investigation to hold a presentation on legal matters;
c. The presentation on legal matters as cited in letter b shall be attended by the team of investigation and the team of review;
d. After holding the presentation on legal matters as cited in letter b the head of unit of investigation shall issue a letter of instruction on the termination of investigation.
e. Based on the letter of instruction on the termination of investigation as cited in letter d the team of investigation shall issue a letter of decision on the termination of investigation; and
f. The letter of decision on the termination of investigation as cited in letter e shall be submitted to the defendant or the family, the investigator of the State Police of the Republic of Indonesia, and the general prosecutor (public attorney) through the investigator of the State Police of the Republic of Indonesia.
CHAPTER XVII
STATUS OF COMPENSATION OF LOSS, COMPENSATION OF EXCESS OF TAX PAYMENT, RETURN OF EXCESS OF TAX PAYMENT, AND CORRECTION
Article 35
(1) The taxpayer, who submits a letter of statement, has no rights to:
a. compensating the fiscal loss stated in the letter of notice on the type of tax as cited in Article 3 paragraph (3) letter a in a part of fiscal year or in a fiscal year up to the end of the latest fiscal year to another part of fiscal year or to the next fiscal year;
c. submitting a request for a return of the excess of tax payment in the letter of notice on the type of tax as cited in Article 3 paragraph (3) in a fiscal period, part of fiscal year, or fiscal year up to the end of the latest fiscal year; and
D. conducting a correction of the letter of notice on type of tax as cited in Article 3 paragraph (3) in a fiscal period, part of fiscal year, or fiscal year, up to the end of the latest fiscal year, as of the effectiveness of the law on tax amnesty.
(2) In case the taxpayer who submits the letter of statement is to submit the correction of the letter of notice in fiscal period, part of fiscal year, or fiscal year, up to the end of the latest fiscal year, as of the effectiveness of the law on tax amnesty, the correction of the letter of notice shall be regarded as being not submitted.
(3) In case the taxpayer has compensated the fiscal loss as cited in paragraph (1) letter a as stated in the letter of notice on annual income tax in the fiscal year after the latest fiscal year, the letter of notice shall be obligatorily corrected.
(4) In case the taxpayer has compensated the excess of tax payment as cited in paragraph (1) letter b in the letter of notice for a fiscal year after the end of the latest fiscal year, the letter of notice shall be obligatorily corrected.
(5) In regard of the administrative sanction caused by the correction as cited in paragraphs (3) and (4), Director General of Taxation shall remove the administrative sanction by not issuing a document on tax claim.
CHAPTER XVIII
TYPE OF INVESTMENT OF ASSETS REPATRIATED FROM OUTSIDE THE TERRIOTRY OF UNITARY STATE OF THE REPUBLIC OF INDONESIA TO INSIDE THE TERRIOTRY OF
UNITARY STATE OF THE REPUBLIC OF INDONESIA Article 36
The investment as cited in Article 13 paragraph (2) letter a shall be in form of:
a. market stock of the Republic of Indonesia;
b. bonds of State-owned Enterprise (SOE);
c. bonds of financial institution owned by the Government;
d. financial investment in Bank of Perception;
e. bonds of private company of which the trading is monitored by the Authority of Financial Services (OJK);
f. infrastructure investment in cooperation between the Government and business entity;
g. investment in real sector based on the priority as determined by the Government; and/ or
h. other legitimate investments in compliance with the prevailing laws and regulations.
CHAPTER XIX
DETERMINATION ON BANK OF PERCEPTION Article 37
Minister shall determine on the Bank of Perception in order to:
b. receive the transfer of assets in form of fund from outside the territory of Unitary State of the Republic of Indonesia.
CHAPTER XX
PROCEDURE ON REPORTING THE ASSETS OUTSIDE THE TERRITORY OF THE UNITARY STATE OF THE REPUBLIC OF INDONESIA OR THE ASSETS THAT ARE REPATRIATED AND INVESTED INTO THE TERRITORY OF THE UNITARY STATE OF THE REPUBLIC OF
INDONESIA. Article 38
(1) Taxpayer who has applied the tariff of Compensation Money (Redeem) as cited in Article 10 paragraph (1) shall submit a report to Director General of Taxation through the Head of KPP where the taxpayer is registered, in which includes:
a. the realization of the repatriation and investment of additional assets into the territory of Unitary State of the Republic of Indonesia as revealed in the letter of statement; and/ or
b. the placement of additional assets located in the territory of Unitary State of the Republic of Indonesia as revealed in the letter of statement.
(2) The report on the repatriation and the realization of investment of additional assets as cited in paragraph (1) letter a shall be submitted on a periodical basis under conditions as follows:
a. the report is submitted on a periodical basis of 6 (six) months for 3 (three) years as of the repatriation of assets as cited in Article 13 paragraph (2);
b. the report is submitted no later than on the 20th of the next month after the end
of the period, namely:
1. January 20 for the period of report on the realization of investment from July through December; and
2. July 20 for the period of report on the realization of investment from January through June;
By using a format of sample as cited in Appendix letter L of this Ministerial Decree.
(3) The report on the placement of additional assets located inside the territory of Unitary State of the Republic of Indonesia as cited in paragraph (1) letter b shall be submitted on a periodical basis under conditions as follows:
a. the report shall be submitted on a periodical basis of 6 (six) months for 3 (three) years as of the issuance of the letter of advice as cited in Article 13 paragraph (5);
b. the report is submitted no later than on the 20th of the next month after the end
of the period, namely:
1. January 20 for the period of report on the realization of investment from July through December; and
2. July 20 for the period of report on the realization of investment from January through June;
by using a format of sample as cited in Appendix letter M of this Ministerial Decree.
