TAX DISPUTE

What is the procedure to protest the tax due after the issuance of notice of assessment?

After the issuance of notice of assessment, a taxpayer has the right to protest by filing an objection.

According to Article 25 of law of General Provisions and Tax Procedures, taxpayers can only file objections to the Director General of Taxes for the following matters:

a.	Notice of Tax Underpayment Assessment;
b.	Notice of an Additional Tax Underpayment Assessment;
c.	Notice of Tax Overpayment Assessment;
d.	Notice of Nil Tax Assessment;
e.	Withholding by third parties under the provisions of the tax laws.

Objections should be submitted in writing in Indonesian language by stating the amounts of tax payable or the amounts of tax withheld, or the amounts of losses as calculated by the taxpayers, supported by clear reasons.

Is there a deadline for filling an objection?

The written letter of objection should be filed within 3 (three) months from the date of issuance of assessments.

How long does objection process take?

The Director General of Taxes should decide on objected issues within 12 (twelve) months from the date of receipt of the objection applications. If within 12 months DGT has not decided, the objection is considered to be accepted.

What is the next step if a taxpayer does not agree with the decision on objection?

A taxpayer may submit a request for an appeal to the tax court against the DGT’s Decision on Objection.

The appeal request should be submitted in writing in Indonesian language along with clearly stated reasons not later than 3 (three) months after the date of receipt of decision on Objection, attached with a copy of the Decision.

The submission of applications for appeals shall not postpone the obligations to pay taxes.