On 16 June 2023, The Government issued Regulation No. 35 of 2023 (GR-35) concerning general provisions on local taxes and user fees.

The main points of this regulations are summarized as follows:

• Local tax collection is divided into 2 (two) levels:
  1. Provincial tax; and
  2. District/City tax
• Below is the comparison of Local tax collection:
  

  No	Provincial tax	District/City tax
  1	Vehicle	Land and building
  2	Vehicle registration	Billboard
  3	Heavy equipment	Groundwater
  4	Surface water	Fees on acquisition of land and building rights
  5	Fuel	Specific Goods and Services
  6		Non-metallic Minerals and Rocks

• User fee collection is divided into 3 (three) types:
  1. General services user fee;
  2. Business services user fee; and
  3. Specific license user fee
• Below is the comparison of User fee collection:
  

  No	General services	Business services	Specific license
  1	Health	Grocery markets	Building approval
  2	Cleaning	Provision of place	Using of Expatriate workers
  3	Parking	Parking space	Management of traditional mining
  4	Market	Villa
  5	Traffic	Slaughterhouse
  6		Port
  7		Recreation, tourism, sport place
  8		Crossing place
  9		Local sales
  10		Regional asset utilization

• The implementation of local taxes and user fee audit is as follows:
  1. The Regional Head or a designated official is authorized to conduct an audit to test compliance with fulfilment of tax and user fee obligations and other purposes in the context of implementing the provisions of laws and regulations regarding taxes and user fees.
  2. The audit is conducted to test the compliance of tax/user fee obligations in the event that:
     • The taxpayer submits an overpayment claim;
     • There is other information or concrete data used by the authority; and
     • Selective audit based on risk analysis
  3. .Audit for other purposes shall be conducted at least for:
     • Deemed of NPWPD (regional taxpayer number) approval;
     • Deemed of NPWPD revocation;
     • Settlement of taxpayer’s objection application;
     • Matching data and/or information tools; and/or
     • audit in the context of Tax Collection