Page 4 - Newsletter (Changes in Small Tax Office’s Tasks, Functions and Operational Procedures)

DDTC Newsletter Vol.03 | No.05 I March 2020 Page 4 of 6

Changes in Small Tax Office’s Tasks, Functions

and Operational Procedures

Section Tasks

Section of Supervision and Consultation III and Section of • granting and/or revoking tax identification, confirming and/
Supervision and Consultation IV of the Small Tax Office or revoking taxable persons for VAT purposes, granting and/
or revoking tax object number ex officio.
• conducting analysis, elaboration, and achieving tax revenue
targets.
• observing tax potentials.
• collecting data and mapping on taxpayers and tax objects.
• collecting supporting data and reconciling data in the context
of taxpayer supervision
• analyzing taxpayers’ performance.
• supervising tax compliance and providing advice and
counseling to strategic taxpayers.
• producing information on the results of observations, data
collection, mapping, and supervising taxpayers.
• updating the taxpayer database.
• performing audits with certain criteria.
• following up on the data received from the head office.
• updating the tax object value database.

*Note: Additional Task.

and Consultation (Seksi Pengawasan dan Konsultasi/ This segmentation is intended to formulate appropriate
Waskon) III/IV. and effective supervision and audit methods. Further, this
segmentation is aimed at broadening the tax base and
Three parties are involved in the operational procedures optimizing tax revenue through increasing compliance
for the supervision of new taxpayers, including, first, the and extracting taxpayers’ potentials.
Head of the Waskon III/IV Section and the Head of the
Section of Extensification and Dissemination. Second, The segmentation and the details of the supervision and
Account Representatives (AR) in the three sections. audit method are stipulated in Circular Number SE-07/
Third, new taxpayers. PJ/2020 concerning Taxpayer Supervision and Audits to
Expand the Tax Base (SE-07/PJ/2020).
Furthermore, the Standard Operating Procedure (SOP)
has been adjusted in terms of the registration of new tax In further detail, under the regulation, supervision
objects at the Small Tax Office. Under the former SOP, the on strategic taxpayers shall be carried out through
task was carried out by the Section of Tax Extensification. comprehensive research activities. Other taxpayers,
Under the new SOP, however, the task is shifted to the however, are monitored on a regional basis.
Section of Supervision and Consultation II/III/IV and the
Section of Extensification and Dissemination. Further, the regulation defines strategic taxpayers as all
taxpayers registered at the tax office (kantor pelayanan
Adjustments have also been made to related parties.
pajak/KPP) in the DGT’s Large Tax Regional Tax Office,
The complete list of adjustments to the operational
Jakarta Special Regional Tax Office, and the Medium Tax
procedures and SOP for the five affected sections are
Office.
listed in the attachment of the circular.
Policy for Supervision and Audit In addition, strategic taxpayers include taxpayers with
certain criteria that are registered with the Small Tax
of Taxpayers to Broaden the Tax Office. The regulation outlines that taxpayers with
Base certain criteria shall be taxpayers with the largest tax
revenue contribution or other criteria regulated through
the Official Memo of the Director of Tax Potential,
The Directorate General of Taxes (DGT) will conduct
Compliance, and Revenue as set forth by the DGT’s Head
supervision and audit using different methods depending
of the Regional Tax Office.
on the taxpayer segment. As such, the DGT has segmented
taxpayers into two groups, namely strategic taxpayers
Other taxpayers refer to taxpayers at Small Tax Office
and other taxpayers.
who do not have a taxpayer identification number