TAX UPDATE
No.1 2022

Tax
Law

RegulationHarmonization(General Tax Provision Law / “KUP Law”)
Law No. 7 year 2021 (“7/2021”)

On 29 October 2021, the Indonesia Government has issued the Law No 7 year 2021 regarding
the Tax Regulation Harmonization. This new tax law consist of 6 clusters as follows:
1)
2)
3)
4)
5)
6)

General Tax Provision (Ketentuan Umum dan Tata Cara Perpajakan)
Income Tax (Pajak Penghasilan)
VAT (Pajak Pertambahan Nilai)
Taxpayer Voluntary Discloure Program (Program Pengungkapan Sukarela Wajib Pajak)
Carbon Tax (Pajak Karbon)
Excise (Cukai)

The General Tax Provision Law has the key features as follows:
NoKey Features

1

Integration of Tax
ID and Resident ID
Number (NomorInduk Kependudukan /NIK)Description
The Indonesian Resident ID Number (NIK) will be used as the Tax ID
Number (NPWP) for Individual Taxpayers. This will lead to theimplementation of single identity number for Indonesian residents.
Type of Penalty

23

Changes in the
Administrative
Penalty for unreported tax return,non-compensated
VAT, notmaintaining
bookkeeping

Changes in the
Administrative
Penalty if theObjection, Appeal
application, or
Judicial Review isrejected/partiallygranted

HPP Law

Previous KUP Law

Income Tax is
unpaid/underpaid(Ministry of Finance
Rate + 20%) / 12months; for max 24months

50% increment

Income Tax is
not/underwithheld/collected(Ministry of Finance
Rate + 20%) / 12months; for max 24months100% increment

Non-compensated VAT

75% increment

100% increment

Income Tax
withheld/collect but
not paid/underpaid

75% increment

100% increment

Objection isrejected/partiallygranted30% of unpaid tax
payable50% of unpaid tax
payableAppeal is
rejected/partiallygranted

60% of unpaid tax
payable100% of unpaid tax
payableJudicial Review isrejected/partiallygranted

60% of unpaid tax
payableN/ATAX UPDATE

No.1 2022

NoKey Features

4

Changes in the
Administrative
Penalty for not
issuing or lateissuing VAT Invoice

5

Assistance for
Global Tax
Collection

6

Mutual Agreement
Procedure (MAP)

Description
Type of Penalty
Not issuing or lateissuing VAT Invoice

HPP Law

Previous KUP Law

1% of VAT Base

2% of VAT BaseThe Indonesian Government can assist the country partner to collect thetax payable based on the claim from the country partner. This assistancehas reciprocal effect.
a)

The MAP can be submitted together with the Objection, Appeal orreduction/cancellation of incorrect tax assessment letter.

b)

If MAP process has not reached agreement when the Tax Court
Verdict of Supreme Court Verdict is announced, the DGT can:• Continue negotiations if the content of the Verdict is not related
to the MAP case; OR• Use the Verdict for the MAP negotiations, in case the Verdict isrelated to the MAP case.

For additional information, please contact us:

PT Sakura Mitra Perdana
Nishihara Kenta Director nishihara@sakura-id.com
Mihara Azusa Director mihara@sakura-id.com
Menara Rajawali Lt. 8,Jl. Dr. Ide Anak Agung Gde Agung,Kuningan Timur, Jakarta Selatan 12950
Phone: +62 21 2902 3417 / 18 / 19
Fax : +62 21 2902 3410
https://sakura-id.com/
This Tax Update was created by our partner SSJK.

SSJK Consulting
The Boulevard Office, UG D-2
Jl. Fachrudin Raya No. 5
Jakarta Pusat 10250
www.ssjkconsulting.com
The information in this document is intended for general information only based on our understanding of theinterpretation of those provisions. There is no guarantee the Tax Office will have the same view from thoseexpressed in this document. When specific problems occur in practice, it is suggested to obtain appropriate advice
from the tax advisor.
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