Indonesia: Update on tax audit regulations

• Published in: International tax review
• Format: Magazine Article
• Language: English
• Published: London Euromoney Institutional Investor PLC 11.07.2017
• Subjects: Amnesties; Compliance; Double taxation; Financial institutions; International taxation; Jurisdiction; Tax audits; Tax deductions; Tax regulations; Tax returns; Indonesia
• ISSN: 0958-7594

On April 28, 2017, the Directorate General of Tax (DGT) issued Circular Letter No. SE-11/PJ/2017 concerning the plan, strategy, and measurement of audit performance of 2017 (Circular Letter 11). The circular is essentially issued to increase tax audit effectiveness that will ultimately increase the results of tax audits and be used as a deterrent to promote tax compliance. The DGT stipulates that the 2017 tax audit will focus on, among others, the implementation of the tax amnesty programme. The DGT will differentiate tax audit treatment between taxpayers who have and those who have not joined the tax amnesty programme. For those who have not joined the tax amnesty programme, the DGT may conduct a tax audit for a tax period, part of a tax year or a tax year in which the tax stipulation has not expired. In the event that such a taxpayer is undergoing a tax audit, the tax auditor may also conduct asset tracing for any undisclosed assets in income tax annual tax returns.