On 22 November 2018, the DGT issued regulation No.PER-26/PJ/2018 (“PER-26”) which amends several provisions in regulation No.PER-18/PJ/2017 (“PER-18”) regarding the formal examination procedures on the fulfilment of Income Tax Settlement in relation to Land and/or Building Transfer.

The salient changes in PER-26 are summarized below:

• An individual or entity that has fulfilled the obligation to settle Income Tax on income from the transfer of rights, or from the revision of a sale and purchase agreement related to land and/or buildings transfer, is required to submit an examination request to prove the fulfillment of the Income Tax settlement;
• The request for this formal examination can be submitted directly to the Tax Office (in writing) or through certain media (electronically) using the prescribed template, along with its supporting documents;
• The DGT will perform a series of formal examinations to the income tax settlement and issue an Acknowledgement of Formal Compliance (in the form of a Certificate/ Surat Keterangan) within no later than 3 (three) working days or 10 (ten) working days since the receipt of the properly completed request, depending on the number of tax payments that must be examined;
• If the request is deemed to be incomplete and/or mismatched, the DGT will return it within 3 (three) working days since the submission of the request. The taxpayer may then re-submit the request by completing the required documents.

PER-26 became effective on 22 November 2018.