On 28 December 2021, the Director General of Taxes issued regulation No. PER-24/PJ/2021 concerning form and procedure in making the Unification Withholding Tax Slip and form, content, and procedure for filling and submitting the Unification Withholding Tax Return. This regulation becomes effective starting from the January 2022 Tax Period.

The Unification Withholding Tax Slip itself is a document made by the Taxpayer for withholding/collection of Income Tax. It states the amount of income tax that has been withheld/collected. The Unification Withholding Tax Slip can be in standard or other equivalent document formats. The Unification Withholding Tax Return includes several types of Income Taxes, i.e., Art. 4 (2), Art. 15, Art. 22, Art 23. and Art. 26 Income Tax.

Both the Unification Withholding Tax Slip and the Unification Withholding Tax Return are Electronic documents made and submitted through the e-Bupot Unifikasi Application. They should also be electronically signed with an Electronic Signature by the Taxpayer/ Taxpayer’s representative or Taxpayer’s Proxy using the Electronic Certificate or DGT Authorization code.

In making the Unification Withholding Tax Slip, the parties from whom tax is withheld/collected must provide to the tax withholder/collector:

• NPWP (Tax ID Number); or
• NIK (Single Identity Number, for those who do not have an NPWP).

For a foreign taxpayer from whom tax is withheld or collected:

• Tax Identification Number; or
• Other tax identity.

The Withholder/Collector of Income Tax should

• Pay the Income Tax that has been withheld/collected no later than 10 (ten) days after the tax period ends;
• Pay the Self-Paid income tax no later than 15 (fifteen) days after the tax period ends; and
• Submit the Unification Withholding Tax Return no later than 20 (twenty) days after the tax period has ended.

Late payment or tax underpayment is subject to an administrative penalty, i.e., interest as regulated in Article 8 paragraph (2a) of the KUP Law, whereas late submission of a Tax Return is subject to an administrative penalty, i.e., IDR 100,000 fine as regulated in Article 7 of the KUP Law.

For the Unification Withholding Tax Return submission, the Taxpayer will receive an Electronic Receipt Slip (Bukti Penerimaan Elektronik/BPE) which is a receipt for the submission in accordance with the applicable tax regulations.

A Unification Withholding Tax Receipt can be amended or cancelled before the DGT conducts a Tax Audit or an Investigation for Preliminary Evidence. A Unification Withholding Tax Receipt can also be added with Tax Objects yet to be reported in the Unification Withholding Tax Return. These are then reported in the amended Unification Withholding Tax Return.

The DGT has determined that the unification format will be implemented nationwide starting from the January 2022 Tax Period and required for all taxpayers no later than April 2022.