Management Constituting Tax Bearers of Corporate Taxpayers

JAKARTA, DDTCNews – The government details provisions on the management of corporate taxpayers constituting tax bearers in tax collection. These details are outlined in MoF Reg. 189/2020.

A tax bearer, pursuant to the provisions under the MoF Reg., refers to an individual or entity responsible for tax payment, including a representative that exercises the rights and fulfils the obligations of a taxpayer pursuant to statutory tax provisions.

“Taxes are collected on the tax bearers of individual taxpayers or the tax bearers of corporate taxpayers," reads a fragment of Article 5 of the MoF Reg. effective as of 27 November 2020.

Taxes are collected on the tax bearers of corporate taxpayers including the corporate taxpayers concerned responsible for all tax liabilities and tax collection costs as well as the management of corporate taxpayers.

The regulation further describes the management constituting the tax bearers of corporate taxpayers. The MoF Reg. describes the details of the management constituting the tax bearers of 9 categories of corporate taxpayers.

First, for limited liability companies, the management includes the board of directors; board of commissioners; persons actually authorised to make decisions, personally and/or collectively responsible for all tax liabilities and tax collection costs; and shareholders.

Second, for permanent establishments (PEs), the management includes the head of the representative, the head of the branch, persons in charge or persons in equivalent positions; the parent company of the PE; a person actually authorised to make decisions; and/or the equity owner liable in proportion based on the tax debt-to-equity ratio.

Third, for limited partnerships, the management includes complementary partnerships/active partnerships/management partnerships; persons actually authorised to make decisions; and/or limited partnerships/passive partnerships liable in proportion for tax liabilities and tax collection costs.

Fourth, for civil partnerships and firms, the management includes partners; and/or people actually authorised to make decisions. Fifth, for cooperatives, the board includes administrators; supervisors; and/or persons actually authorised to make decisions.

Sixth, for foundations, the management includes the chairperson or an equivalent position; secretary; treasurer; overseer; supervisors; and/or persons actually authorised to make decisions.

Seventh, for joint operations, the management includes the director or an equivalent position; a person authorised to make decisions; and/or the owner of equity liable in proportion for tax liabilities and tax collection costs.

Eighth, for other entities, the management includes the director or an equivalent position; a person actually authorised to make decisions; and/or the owner of equity liable in proportion for tax liabilities and tax collection costs.

Ninth, for units of government agencies, the management includes the treasurer concerned; task force leaders; and/or persons actually authorised to make decisions. Further details of the management and their responsibilities are also outlined in MoF Reg. 189/2020.

Taxes are collected on the tax bearers of corporate taxpayers in order. However, this order does not apply in the event of 7 matters stipulated under Article 7 paragraph (5). 

In force as of 23 November 2020, this regulation will simultaneously revoke MoF Reg. 24/2008 as amended by MoF Reg. 85/2010 and MoF Decree 563/2000. (kaw)