How to Apply for Bookkeeping in English to the DGT

Taxpayers must maintain bookkeeping or recording in Indonesia using rupiah currency and the Indonesian language. The Directorate General of Taxes (DGT), however, also allows taxpayers to maintain bookkeeping in English.

In addition to being maintained in English, taxpayers may also maintain bookkeeping in the US dollar currency. However, only certain corporate taxpayers are allowed to maintain bookkeeping using US dollar currency and English.

These certain corporate taxpayers include taxpayers operating under contracts with the Government of Indonesia as stipulated under statutory provisions on mineral and coal mining.

Next, taxpayers conducting joint operations (JO) insofar as required in the cooperation agreement/deed of establishment of the JO and all JO members have obtained a permit from the Minister of Finance to maintain bookkeeping in US dollar currency and English.

Further, cooperation contract contractor taxpayers operating pursuant to statutory provisions on oil and gas mining. The criteria of certain corporate taxpayers are regulated under the Director General of Taxes Reg. No. PER-24/2020.

To maintain bookkeeping in English, taxpayers must apply to or notify the DGT. DDTCNews hereby outlines how to submit the notice of maintaining bookkeeping in English through DJP Online.

First, visit the DJP Online webpage. Fill in the Taxpayer Identification Number (TIN), password and security code. Next, click Login. On the DJP Online main menu, select the Services menu. Then, click the KSWP Info field.

Next, you will see the taxpayer’s name, TIN and address. Afterwards, select the notice option of maintaining bookkeeping in English and US dollar currency. Select the year of commencement and click Check Data. If successful, you will receive proof of receipt.

Kindly note that the notice is given no later than 3 months:

1. After the commencement of the accounting year in which bookkeeping is maintained in English for the taxpayers;
2. From the date of establishment for certain corporate taxpayers that since their establishment, have maintained bookkeeping using English and U.S. dollar currency; or
3. Prior to the accounting year, in which bookkeeping in English and U.S. dollar currency commences for certain corporate taxpayers.

In addition to DJP Online, you may also notify the Head of the Tax Office where the taxpayers are registered. The sample format is listed in appendix A of PER-24/2020. The process is completed. We hope this is beneficial. (rig)