Page 4 - Newsletter (Towards Certainty in Tax Dispute Resolution)

DDTC Newsletter Vol.01 | No.07 I June 2019 Page 4 of 6

Towards Certainty in Tax Dispute Resolution

channels agreed upon by the Director General of Taxes
and tax treaty partner authorized officials. In addition,
the Director General of Taxes establishes a negotiating
delegation.

The results of the negotiations are stated in a
mutual agreement that may contain agreements or
disagreements over the material submitted for the
request for MAP implementation. Mutual agreements
which contain disagreements may occur in a number of
conditions, namely:
• the negotiations result in an agreement to produce a
mutual agreement containing disagreement.
• the negotiations do not result in an agreement until
Source: Directorate of International Taxes, DGT (www.pajak.go.id/id/
the deadline.
apa-map).
• the negotiations are held in conjunction with the
appeal process and until the appeal decision is In addition, the OECD has recorded the percentage
pronounced, the negotiations have not produced an of MAP negotiations in Indonesia in 2017 based
agreement. on the results agreed upon by the Indonesian tax
authority and the tax authorities of the tax treaty
• the time limit stipulated in UU KUP for the tax year,
partners.
a fraction of the tax year, or the tax period covered
by the request for MAP implementation has been
exceeded and the negotiations have not resulted in
an agreement.
• the domestic taxpayer participates in a tax amnesty
program as stipulated in the provisions of tax
legislation for the tax year, a fraction of the tax year,
or the tax period covered in the request for MAP
implementation.
The Director General of Taxes follows up on the results
of negotiations by issuing a decree within a maximum
period of one month upon the receipt or written
notification from or to the tax treaty partner authorities
that a mutual agreement can be implemented.
Source: OECD (http://www.oecd.org/tax/dispute/2017-MAP-
On a side note, the following are statistics on requests for Statistics-Indonesia.pdf).
MAP implementation received by the DGT and MAP cases
The Government Appoints 14 New
that have been successfully resolved in Indonesia during
the period before 2016 until 2018 and the final number Tax Court Judges
of unresolved MAP cases.
The Indonesian President has appointed 14 new tax
court judges. This is stated in Republic of Indonesia’s
Presidential Decree No. 39/P of 2019 concerning the
Appointment of Tax Court Judges set on 11 April 2019.
This appointment has increased the number of judges in
the tax court from 63 to 77 judges.

The addition of the new judges was proposed by the
Minister of Finance through Letter Number: SR-19/
MK.01/2019 dated January 16, 2019, which has obtained
the approval of the Chief Justice of the Supreme Court
through Letter Number: 191/KMA/HK.06/12/2018
dated 20 December 2018. The oath ceremony of the tax
Source: Directorate of International Taxes, DGT (www.pajak.go.id/id/ court judges was held on 25 April 2019 at the auditorium
apa-map). of the BPKP Building in Central Jakarta.