Interest Rate as the Basis for Calculating Administrative Penalty and Interest Compensation for December 2020
- January 11, 2021
- Posted by: Administrator
- Category: Tax News
Following the issuance of the Omnibus Law, the calculation of interest penalty and interest compensation is changing.
On 30 November 2020, the Minister of Finance issued decision No. 52/KMK.10/2020 regarding interest rates as the Basis for Calculating Administrative Penalty and Interest Compensation. These interest rates are applicable for the period 1 December – 31 December 2020. The summary of monthly interest rates as referred to in the first dictum which are effective from 1 December 2020 to 31 December 2020 is as follows:
Administrative Penalties:
| No | Clauses in Law of General Provisions and Procedures for Taxation | Monthly Interest Rate |
| 1 | Article 19 paragraph (1), Article 19 paragraph (2), and Article 19 paragraph (3) | 0.53% (zero point five three percent) |
| 2 | Art. 8 paragraph (2), Article 8 paragraph (2a), Article 9 paragraph (2a), Article 9 paragraph (2b), and Article 14 paragraph (3) | 0.94% (zero point nine four percent) |
| 3 | Article 8 paragraph (5) | 1.36% (one point three six percent) |
| 4 | Article 13 paragraph (2) and Article 13 paragraph (2a) | 1.78% (one point seven eight percent) |
Interest Compensation:
| Clauses in Law of General Provisions and Tax Procedures | Monthly Interest Rate |
| Article 11 paragraph (3), Article 17B paragraph (3), Article 17B paragraph (4), and Article 27B paragraph (4) | 0.53% (zero point five three percent) |
The authority to determine monthly interest rates as the basis for calculating administrative penalties of interest and interest compensation for subsequent periods is delegated as a mandate to the Head of the Fiscal Policy Agency for and on behalf of the Minister of Finance.