Interest Rate as the Basis for Calculating Administrative Penalty and Interest Compensation
- December 14, 2020
- Posted by: Administrator
- Category: Tax News
Following issuance of Omnibus Law, the calculation of interest penalty and interest compensation are changing.
On November 26, 2020, the Minister of Finance (MoF), issued decision No. 540.KMK.010/2020 regarding interest rate as the Basis for Calculating Administrative Penalty and Interest Compensation. These interest rate are applicable for period November 2 – November 30, 2020. The summary are as follows: The monthly interest rate as referred to the first dictum which is effective from November 2, 2020 to November 30, 2020, as follows:
Administrative Penalties:
| No | Clauses on Law of General Provisions and Tax Procedures | Monthly Interest Rate |
| 1 | Article 19 Paragraph (1), Article 19 Paragraph (2), and Article 19 Paragraph (3) | 0.57% (zero point five seven percent) |
| 2 | Art. 8 Paragraph (2), Article 8 Paragraph (2a), Article 9 Paragraph (2a), Article 9 Paragraph (2b), and Article 14 Paragraph (3) | 0.99% (zero point nine nine percent) |
| 3 | Article 8 Paragraph (5) | 1.40% (one point four zero percent) |
| 4 | Article 13 Paragraph (2) and Article 13 Paragraph (2a) | 1.82% (one point eight two 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) | 0.57% (zero point five seven percent) |
The authority to determine monthly interest 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.