Procedures for the collection of outstanding tax

On 09 June 2023, the Minister of Finance (MoF) issued a new regulation Number 61 (“PMK-61”) regarding Procedures for the collection of outstanding tax. Through this regulation, the MoF has now revoked Regulations No. 85/KMK.03/2002, 23/PMK.03/2006 and 189/PMK.03/2020.

The main points of this regulation are as follows:

  • This provision stipulates Tax Collection of Tax Bearers for individual taxpayers or corporate taxpayers. Tax Collection can be conducted against a Tax Bearer which:
    1. is declared bankrupt;
    2. is dissolved, liquidated, or its legal entity status ends;
    3. is involved in a merger;
    4. is involved in an amalgamation; and/or
    5. is involved in a split-up.
  • The tax collection activities which must be carried out in connection with non-payment of outstanding tax are detailed as follows:
    1. Warning letter;
    2. Distress warrant;
    3. Confiscation of goods;
    4. Auction of goods’
    5. Banned from leaving Indonesia;
    6. Hostage; and
    7. instant tax collection.
  • Under PMK-61, the Directorate General of Taxes (DGT) and official treaty partners are able to assist each other for implementing tax collection which conducted by the DGT based on International Agreements (i.e. Tax Treaty, Tax Convention on Mutual Administrative Assistance, or other bilateral/ multilateral agreements) on a reciprocal basis.
    The criteria for providing tax collection assistance are as follows:

    1. Each tax claim is only for one Tax Bearer identity;
    2. The Tax Bearer is located or owns Goods in Indonesia that can be used to pay the amount of Tax Claims and is not being used as collateral for the settlement of Tax Debt in Indonesia;
    3. The Tax Claim amount is in Indonesian Rupiah;
    4. The Tax Claim is signed by an authorized official in the Treaty Partner Country or Jurisdiction;
    5. The Tax Claim is not under dispute between the Tax Bearer and the Tax Authority in the Treaty Partner Country or Jurisdiction or has permanent legal force;
    6. Tax collection action has been carried out on Tax Claims in the Treaty Partner Country or Jurisdiction due to the agreement; and
    7. The statute of limitations right to collect the Tax Claim has not expired.
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