Page 2 - Newsletter (New Provisions on Land & Building Tax)

DDTC Newsletter Vol.02 | No.11 I December 2019 Page 2 of 4

New Provisions on Land & Building Tax

Increased Role of the Directorate out by the Customs Officers if there are other objectives
General of Customs and Excise in the based on the approval of the Director General. In addition,
the technicalities related to the guidelines and command
Maritime Supervision Function structure shall be further regulated through the Director
General of Customs and Excise Regulation.
The Indonesian government has again intensified its
supervision over the flow of illegal goods in border areas Uniforming the Format Tax Object
in the aspect of customs and excise. This is regulated in the Notification Letter for Land & Building
Minister of Finance Regulation No. 179/PMK.04/2019
concerning the Sea Patrol of the Directorate General of Taxes
Customs and Excise in the context of Proceedings in the
Field of Customs and Excise (MoF Reg. No. 179/2019). The The DGT has renewed the format for data and
regulation that addresses the challenges of Indonesia as information reporting on Land and Building Tax (Pajak
a maritime country focuses more on the role of Customs Bumi Bangunan/PBB) for the Mining, Plantation, and
and Excise Officers in supervising the means of transport Forestry (Pertambangan, Perkebunan, dan Perhutanan/
at sea and/or rivers. P3) (hereinafter: PBB-P3) and sectors other than Rural
and Urban (Pedesaan dan Perkotaan/P2). The new format
The Customs and Excise Officer referred to in the is regulated through Director General of Tax Regulation
regulation which is to come into force 30 days after 3 No. PER-19/PJ/2019 concerning Tax Object Notification
December 2019 is an employee of the Directorate General Letter for Land and Building Tax (PER-DJP No. PER-19/
of Customs and Excise (DGCE). Further, DGCE will only PJ/2019).
conduct sea patrols after the issuance of a warrant by
the parties stipulated in this regulation, namely the Land and Building Tax Object Notification Letter (Surat
Director General of Customs and Excise who is in charge Pemberitahuan Objek Pajak/SPOP) is a letter used by a
of proceedings in the field of customs and excise, the tax subject or a taxpayer to report taxable object data
Head of Customs and Excise Office, or other appointed according to the provisions of the Land and Building
Customs and Excise Officers. Tax Laws attached with SPOP Attachment as an integral
part of SPOP. This regulation also stipulates to uniform
Under this regulation, a sea patrol will be conducted to the SPOP PBB-P3 formats among PBB sectors in order
search for and discover any alleged violation against to provide convenience, legal certainty, and improve
customs and/or excise provisions. The indications of the quality of taxpayer services in reporting Land and
such violations will subsequently be followed up through Building taxable objects. The latest form is available in
the prosecution process. The prosecution may take the the Appendix of the regulation.
form of (i) the pulling over and search of the means
of transport; (ii) search of goods, premises, letters, Under this regulation, the SPOP shall be sent by the
or documents relating to the goods or people; (iii) Director General of Taxes to tax subjects or taxpayers
suspension of the goods and means of transport; and (iv) to register or update taxable objects data on dates set
locking, sealing, and/or sticking required security signs forth according to the tax year of the PBB payable per
on the goods or means of transport. sector. The submission of this form is to be conducted
electronically, through the DGT’s website channel and
Other than supervising means of transport at sea and/ other channels.
or river, this MoF Regulation also stipulates several
conditions in which sea patrols can be carried out by The technical guidelines of the Minister of Finance
the DGCE, namely for the purpose of law enforcement, Regulation No. 254/PMK.03/2014 concerning the
humanity, or other activities. The sea patrol aimed at law Procedures for Registration and Data Collection of Taxable
enforcement may be conducted in several situations such Objects and Tax Subjects or Land and Building Taxpayers
as for preventing violations in customs and/or excise; for (MoF Reg. No. 254/2014) subsequently revoke various
following up on investigations; for coordinating in the types of SPOP reporting formats contained in other
framework of law enforcement with domestic agencies Director General of Taxes Regulations. The four types of
and/or foreign agencies; and for supporting the duties format revoked are the SPOP format for the plantation
and functions of supervision in other domestic agencies. sector (DGT Reg. No. PER-31/PJ/2014), other sectors
(DGT Reg. No. PER-20/PJ/2015), the forestry sector (DGT
Further, the humanitarian objectives of the DGCE’s sea Reg. No. 42/PJ/2015), and the mining sector for mineral
patrol include assisting in the search and rescue (SAR) and coal mining (PER-DGT No. PER-47/PJ/2015).
process under statutory provisions concerning marine
law and assisting in the safeguarding and implementation The regulation will come into force on 1 January 2020
of state officials’ duties. Sea patrols may also be carried and the SPOP forms in the newest format must be resent