7 Reasons Why Taxpayers Receive Notices of Tax Collection

JAKARTA, DDTCNews – The Director General of Taxes may issue notices of tax collection for taxpayers that do not or underpay taxes or taxpayers subject to administrative penalties in the form of interest and/or fines.

Pursuant to the Minister of Finance Regulation (MoF Reg.) No. 80/2023. A notice of tax collection (surat tagihan pajak, hereinafter referred to as STP) is a notice for the collection of tax and/or administrative penalties in the form of interest and/or fines. There are 7 reasons why taxpayers may receive an STP.

“[First], income taxes in the current year are not paid or underpaid. [Second], based on verification results, there is tax underpayment due to typos and/or miscalculations,” reads Article 17 of MoF Reg. 80/2023, quoted on Sunday (10/9/203).

Third, a taxpayer is subject to administrative penalties in the form of fines and/or interest. Fourth, an entrepreneur has been registered as a Taxable Person for VAT Purposes (Pengusaha Kena Pajak, hereinafter referred to as PKP) but does not prepare tax invoices or is late in preparing tax invoices.

Fifth, an entrepreneur that has been registered as a PKP does not fill out tax invoices completely as stipulated under Article 13 paragraph (5) and paragraph (6) of the VAT Law, other than the identity of the buyer of taxable goods or recipient of taxable services as well as the name and signature as stipulated under Article 13 paragraph (5) subparagraph b and subparagraph g of the VAT Law if the supply is performed by a retailer.

Sixth, there is interest compensation that should not otherwise be granted to a taxpayer if: 1. a decision is issued; a ruling is received; or data or information is found, that shows there is interest compensation that should not otherwise be granted to the taxpayer.

Seventh, an amount of tax is not or is underpaid within the period according to the agreement to instal or defer the underpayment of tax payable based on the Annual Income Tax Return as stipulated under Article 9 paragraph (4) of the General Provisions and Tax Procedures Law.

On another note, taxpayers subject to administrative penalties in the form of fines and/or interest also include stamp duty collecting agents that are late in remitting stamp duty; do not or are late in filing the collection and remittance of stamp duty; and/or rectify Periodic Stamp Duty Returns resulting in greater 

Next, taxpayers subject to administrative penalties also include carbon tax withholding agents that are late in remitting carbon tax; do not or are late in filing Periodic Carbon Tax Returns; and/or rectify Periodic Carbon Tax Returns resulting in greater carbon tax payable.

Further, taxpayers subject to administrative penalties also comprise taxpayers that conduct activities that generate carbon emissions: that are late in remitting carbon tax; do not or are late in filing the Annual Carbon Tax Return; and/or rectify the Annual Carbon Tax Return Tax resulting in greater carbon tax payable. (rig)