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

DDTC Newsletter Vol.01 | No.01 I February 2019 Page 3 of 6

‘3 in 1’ Tax Services through iKSWP Application

Table 1 - Comparison between Previous & Latest TC Application Provisions

Provision Before (PER-32/PJ/2014) After (PER-03/PJ/2019)

TC issuance requirements A taxpayer for whom TC can be issued must: A taxpayer for whom TC can be issued must:
• not be under a criminal investigation in • not be in an open preliminary investigation,
the field of taxation; investigation, or prosecution pertaining to
• not have tax liabilities, except in the event taxation and/or money laundering criminal
that the taxpayer obtains the permission to acts originating in the field of taxation.
postpone or pay taxes in installments, file • not have tax liabilities, but obtains the
an objection, or file an appeal; permission to postpone or pay taxes in
• have submitted Annual Income Tax Return installments, and
for the last tax year and Periodic Tax • have submitted Annual Income Tax Return
Return for the last three tax periods. for the last two tax years and Periodic Tax
Return for the last three tax periods.

TC application document attachments The application must be attached with nine An online application does not require
types of documents, including a photocopy taxpayers to attach any documents .
of Annual Tax Return, a photocopy of Annual A manual application by a corporate taxpayer
Tax Return receipt, a photocopy of Tax must be attached with a photocopy of the
Payment Slip, and letter of statement deed of establishment or other supporting
documents indicating the highest leaders or
management authorized to carry out company
activities related to taxation.

TC issuance time 15 working days after the application Online: as soon as the application is submitted
submission Manually: three working days after the
application is received

TC validity period Unregulated TC is valid for one month since the issuance
date.

TC verification Unregulated Ministries / Institutions or other parties
can verify the TC obtained by the taxpayer.
Verification is conducted through the DGT's
website, Kring Pajak, or by the Tax Office/
KP2KP.

TC obtained by a certain taxpayer also applies for all of marketplace platform service providers, merchants,
its branches. However, TC does not eliminate the DGT’s and buyers.
authority to determine the amount of tax payable,
collect tax liability, and/or impose criminal sanctions in Meanwhile, transactions in other platforms, such as
accordance with tax law provisions. online retail, classified ads, daily deals, have yet to be
arranged. Transactions in all three platforms still refer
Latest E-Commerce Rules to the Director General of Taxes Circular Number SE-
62/PJ/2013 concerning Confirmation of the Terms
of Taxation on E-commerce Transactions and SE-06/
At the end of last year, the Minister of Finance
PJ/2015 concerning Withholding and/or Collection of
released Minister of Finance Regulation (PMK)
Income Tax on E-Commerce Transactions.
Number 210/PMK.010/2018 concerning Taxation
of Trade Transactions Through Electronic Systems
To date, e-commerce transactions through social
(E-Commerce). This rule comes into effect on April 1,
media, such as Facebook, Twitter or Instagram are still
2019.
unregulated. The taxation (income tax, VAT, sales tax
on luxury goods) on online retail, classified ads, daily
The object of the regulation is trade transactions related
deals, and social media is imposed in accordance with
to the online marketplace platform (marketplace),
general tax regulations.