Page 2 - Newsletter (Changes in Small Tax Office’s Tasks, Functions and Operational Procedures)

DDTC Newsletter Vol.03 | No.05 I March 2020 Page 2 of 6

Changes in Small Tax Office’s Tasks, Functions

and Operational Procedures

Changes in Small Tax Office’s Tasks h. updating tax databases;
and Functions i. imposing and deducting land and building tax

in the sectors of plantation, forestry, oil and gas
The government has officially amended the tasks and mining for onshore natural settlements, mining
functions of the Directorate General of Taxes’ (DGT) Small for geothermal exploitation, mineral and coal
Tax Office (KPP Pratama). The amendments are outlined mining, and other sectors;
in the Director General of Taxes Decree No. KEP-75/
j. administration of tax receivables and tax
PJ/2020 concerning the Amendments to the Tasks and
collection;
Functions of the Small Tax Office (KEP No. 75/PJ/2020).
Set forth on 20 February 2020, this regulation has been k. performance management and risk management;
in effect since 1 March 2020. l. implementation and supervision of internal
compliance;
The restipulation of the Tax Office’s tasks and functions
m. conducting follow-up on taxation cooperation;
is intended to improve the effectiveness of supervisory
and
performance and to extract tax potentials. The Small
Tax Office’s tasks and functions were formerly regulated n. implementation of office administration.
under Articles 58 and 59 of the Minister of Finance
Regulation No. 210/PMK.01/2017. In addition to amending the general tasks and functions
of the Small Tax Office, the government has revised the
Under KEP-75/PJ/2017, Small Tax Office has an additional tasks of several sections therein. This is mandated in the
task to collect and guarantee the quality of taxation second dictum of KEP-75/PJ/2017. The amended tasks
data and information in its domain based on statutory of the five sections, among others can be found in Table 1.
regulations whereas under the previous regulation, this
Operational Procedures for the
was not one of Small Tax Office’s tasks.
Amendment to Small Tax Office’s
The tasks similar to the previous regulation include
providing services, dissemination, supervision, and law Tasks and Functions
enforcement on taxpayers in terms of income tax, VAT,
Sales Tax on Luxury Goods (SLTGs), other indirect taxes,
In line with the changes in Small Tax Office’s tasks and
and Land and Building Tax within its domain based on
functions, the Director General of Taxes has also adjusted
statutory regulations.
the standard operating procedures (SOP) for the affected
five sections. These adjustments are outlined in Circular
Moreover, Small Tax Office’s functions have been
No. SE-06/PJ/2020 concerning the Adjustments of
amended. Under the new regulation, Small Tax Office
Operational Procedures Concerning Changes in Tasks
carries out the following functions:
and Functions of the Small Tax Office (SE-06/PJ/2020).
a. analyzing, elaborating, and achieving tax Set forth on 27 February 2020, this circular came into
revenue targets; force on 1 March 2020.
b. searching, collecting, processing, and presenting
This regulation serves as the guidelines for the
taxation data and information;
implementation of operational procedures adjustments
c. quality assurance and validating data and/or relating to changes in the tasks and functions of the
information tools; Small Tax Office. This Circular shall provide clarity and
uniformity in adjusting the operational procedures
d. education, registration/confirmation,
pertaining to the changes in the Small Tax Office’s tasks
providing services, reporting management, and
and functions.
elimination/revocation of taxpayers, taxable
persons for VAT purposes, or tax objects;
One example of the adjusted operational procedures
e. completing the follow-up on the submission/ is the supervision procedure of new taxpayers. Under
revocation of taxpayer or public applications; the previous regulation, the operational procedures
were carried out by the Section of Extensification
f. data collection, mapping, supervision, and audits
and Dissemination. Currently, not only are the new
as well as assessments for tax purposes;
operational procedures carried out by the Section of
g. stipulation, issuance, and/or amendment of tax Extensification and Dissemination, but such procedures
law products; are also under the responsibility of Section of Supervision