Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2023
 

Does the New Regulation on Pre-Investigation Tax Audit Improve Certainty for Taxpayers?

Indonesia's Minister of Finance issued a new regulation, Minister of Finance Regulation No. 177/PMK.03/2022 ("Regulation"), which provides taxpayers with more certainty during pre-investigation tax audit procedures. The Regulation includes several new provisions, such as a shorter timeline for completing the audit and a mandatory request for clarification from taxpayers on potential state loss due to a tax crime. Additionally, tax auditors must notify taxpayers of the audit results, which can either escalate the process into an investigation or close the case if no evidence of a tax crime is found.


Taxpayers should cooperate with the tax authority during a pre-investigation audit and admit to any mistakes and pay the underpaid tax plus a 100% penalty to prevent the escalation of the case to an investigation. If a mistake is not admitted and the case is escalated to an investigation, any admission by the taxpayer will be subject to a penalty of up to 400% of the underpaid tax.


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Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

Assegaf Hamzah & Partners
Jakarta Office
Level 36 & 37, Capital Place
Jalan Jenderal Gatot Subroto Kav 18
Jakarta 12710, Indonesia

Surabaya Office
Pakuwon Center, Superblok Tunjungan City
Lantai 11, Unit 08
Jalan Embong Malang No. 1, 3, 5,
Surabaya 60261, Indonesia
http://id.rajahtannasia.com


Contacts:

Bono Daru Adji
Senior Partner
D +62 21 2555 7800
F +62 21 2555 7899
bono.adji@ahp.co.id

Ahmad Fikri Assegaf
Senior Partner/Co-Founder
D +62 21 2555 7800
F +62 21 2555 7899
ahmad.assegaf@ahp.co.id

Chandra M Hamzah
Partner
D +62 21 2555 7800
F +62 21 2555 7899
chandra.hamzah@ahp.co.id

Eri Hertiawan
Partner
D +62 21 2555 7800
F +62 21 2555 7899
eri.hertiawan@ahp.co.id

Ibrahim Sjarief Assegaf
Managing Partner
D +62 21 2555 7800
F +62 21 2555 7899
ibrahim.assegaf@ahp.co.id


Rajah & Tann Singapore LLP


Contacts:

Hamidul Haq
Partner
D +65 62320398
hamidul.haq@rajahtann.com

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