Page 4 - Newsletter (The Revocation of Treasurer’s Taxpayer Identification Number and VAT Policy on Textbooks)

DDTC Newsletter Vol.03 | No.03 I February 2020 Page 4 of 5

The Revocation of Treasurer’s Taxpayer Identification
Number and VAT Policy on Textbooks

interest, penalties, or increments listed in the notice of Table 1 – Classification of Tax Arrears Quality
tax assessment (surat ketetapan pajak/SKP) or similar
notices. Classification Age of Arrears and Other Indicators
of Tax Arrears
Quality Income Tax,
These arrears arise as the tax due has not been settled VAT, SLTGs, and PBB-P3
until the end of the financial statement period. Meanwhile, Stamp Duty
tax arrears quality is defined as an estimate of tax arrears
payability based on the age or condition of the tax arrears Current Up to 4 months Up to 6 months
at the financial statement date.
Substandard More than 4 months More than 6 months
up to 1 year up to 1 year
In further detail, tax arrears quality is classified into four
categories, namely, current, substandard, doubtful, and Doubtful More than 1 year up More than 1 year up to
lost. The classification of these arrears depends on the to 3 years 3 years
type of taxes, age, and condition of the tax arrears.
Lost • More than 3 years • More than 3 years

In brief, the arrears quality of income tax, value added • Collection rights • Collection rights
have expired have expired
tax (VAT), stamp duty, land and building tax for the
sectors of plantation, forestry, and mining (pajak bumi • Collection rights • Collection rights
dan bangunan sektor perkebunan, perhutanan dan have not expired, have not expired,
but meet the
but meet the
pertambangan/PBB-P3) are shown in the following table. requirements for requirements for
revocation revocation
Further, this regulation sets forth that in the event that the • The tax assessment • The tax assessment
as the basis for as the basis for tax
Income Tax, VAT, SLTGs, and PBB-P3 arrears are collected tax arrears is arrears is issued
based on the Notice of Tax Collection (Surat Tagihan issued after the after the expiration
expiration date date
Pajak/STP) and classified as substandard tax arrears,
the collection is to be conducted immediately upon the Source: Director General of Taxes Reg. No. PER-01/PJ/2020.
issuance of an immediate and total tax collection order.
Pajak Bumi dan Bangunan/SKP PBB) and meets the
In the event that the PBB-P3 tax arrears are collected criteria for substandard tax arrears, the collection must
based on the Tax Due Notification Letter (Surat be immediately carried out with prior issuance of Notice
Pemberitahuan Pajak Terhutang/SPPT) or the Land and of Land and Building Tax Collection.
Building Tax Assessment Letter (Surat Ketetapan Pajak

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