Page 2 - Newsletter (‘3 in 1’ Tax Services through iKSWP Application)

DDTC Newsletter Vol.01 | No.01 I February 2019 Page 2 of 6

‘3 in 1’ Tax Services through iKSWP Application

The Directorate General of Taxes Online Tax Clearance (TC) Application
Launches iKSWP Application Provisions

The Directorate General of Taxes (DGT) has officially Application for TC can now be conducted online through
launched the Taxpayer Status Confirmation information the DGT’ official website according to the Director
application (Informasi Konfirmasi Status Wajib Pajak/ General of Taxes Regulation (PER) No. PER-03/ PJ/ 2019
iKSWP). This facility also serves tax administration concerning Procedures for Granting Tax Clearances.
purposes and can be accessed through DGT Online. This regulation, which has come into effect since 4
February 2019, replaces PER-32/ PJ/ 2014. In the event
The iKSWP application is a breakthrough in tax that the taxpayer is unable to use the online service, TC
administration in that it provides convenience for both application can be carried out manually.
the taxpayers and tax authority. With an easily-accessible
electronic system to taxpayers, the costs for compliance Online applications do not require document attachments.
and obtaining tax facilities are reduced. In contrast, a manual request by the corporate taxpayer
must be accompanied by a photocopy of the deed of
Reduced compliance cost will undoubtedly lead to establishment or other supporting documents that
increased tax compliance. On the other hand, the tax indicate the highest leaders or management authorized
authority will be supplied with adequate assistance as to carry out company activities related to taxation.
one of the advantages of this system is that the DGT is
Moreover, the issuance of TC now requires less time. In
able to map and integrate taxation data more easily.
the previous regulation, the issuance takes 15 working
days upon the submission of the application. Presently, TC
As per the DGT Press Release Number: SP-08/2019, the
is issued immediately after the application is submitted
iKSWP application enables users to access the following
online. If submitted manually, TC issuance requires 3
three features:
working days.
1. directly obtain the Taxpayer Status Confirmation
(Konfirmasi Status Wajib Pajak/ KSWP) before On the other hand, one of the requirements for TC
applying for certain public services to government issuance is the filing of Annual Income Tax Return for
agencies or through the Online Single Supply (OSS) the last two tax years and Periodic Value Added Tax
application for the purpose of issuing a Business (VAT) Return for the last three tax periods. The former
Number (BN); stipulation requires the filing of Annual Income Tax
Return only for the last tax year and Periodic Tax Return
2. obtain a Tax Clearance (TC) issued by the system once
for the last three tax periods.
the application is submitted;
3. obtain Certificate of Domicile (CoD) for Domestic
Some of the changes in this provision include aspectsof
Tax Subjects (DTC) quickly and easily, anytime and
TC issuance requirements, TC application document
anywhere without having to be present at the Tax
attachments, TC issuance time, TC validity period, and
Office where the taxpayer is registered.
TC verification. Table 1 shows details of changes to these
provisions.
At present, 11 ministries/ institutions (M/I) and 168
regional governments have implemented KSWP. As
According to PER-03/2019, TC issued prior to January 2,
mandated by the Government Regulation No.54/201, the
2019, is declared invalid. On the other hand, TC issued
number of M/I that is to implement KSWP as a licensing
from January 2, 2019, to the issuance of PER-03/2019,
requirement will increase to 28.
is still deemed valid. However, starting February 4, 2019,
the TC expires within a month.
This iKSWP service is similar to other tax authority’s
services, such as e-filing, which requires the taxpayer
to activate the iKSWP service after logging into the DGT The regulation stipulates that TC is valid for one month
starting from the date of issuance. This is different from
Online account. To be able to use this iKSWP application,
the taxpayer must activate it through the DGT Online the previous regulation which did not cover the validity
menu - Complete Profile - Add Access Rights. period of TC issued by the authorities.
On a side note, TC is information provided by the DGT
To be able to access DGT Online services, taxpayers
regarding a taxpayer’s compliance for a certain period of
must log in using their username and password.
time to fulfill the requirements of acquiring services or
Forgotten password may be reset using Electronic Filing
implementing certain activities.
Identification Number (EFIN).