Page 6 - Newsletter (New Regulation on Stamp Duty and Tax Cluster in Job Creation Law)

DDTC Newsletter Vol.04 | No.09 I November 2020 Page 6 of 12

New Regulation on Stamp Duty and Tax Cluster in

Job Creation Law

rate of 2% per month for a maximum of 24 months. (iv) Local Taxes and Charges Law
However, the amount of the penalty has changed and
refers to the reference interest rate stipulated by the Article 114 contains changes to several provisions
in Law No. 28 of 2009 concerning Local Taxes and
Minister of Finance divided by 12, plus the uplift factor
Charges. Amendments to the articles of Local Taxes
according to the taxpayer’s degree of infringement.
and Charges Law in Job Creation Law can be found in
Moreover, Job Creation Law removes Article 13 Article 141, Article 144 (deleted), Article 156A (new),
paragraph (5) of General Tax Provisions and Article 156B (new), Article 157 (new), Article 158,
Procedures Law which stipulates the issuance of Notice Article 159, and Article 159A (new) ).
of Tax Underpayment Assessment (Surat Ketetapan
The main points of amendments to Local Taxes and
Pajak Kurang Bayar/SKPKB) by the Directorate
Charges Law in Job Creation Law cover removing
General of Taxes (DGT) within 5 years after the tax
retribution for disturbance permits from certain
becomes payable/the end of the tax period, a fraction
permit retribution and adding Articles 156A and
of the tax year, or the tax year has passed. Additionally,
156B of Local Taxes and Charges Law which regulate
Article 15 paragraph (4) of General Tax Provisions
national fiscal programs to promote investment.
and Procedures Law, which stipulates the issuance of
additional SKPKB after a period of 5 years after the tax
On another note, Article 114 of Job Creation Law
becomes payable, is also deleted.
adds paragraph (5a) to Article 157 of Local Taxes
and Charges Law which regulates the evaluation of
Other than changing the amount of the administrative
regional regulations related to local taxes and charges
penalty, Job Creation Law also revises the amount
by the Minister of Finance, revises the provisions in
of interest repayment granted to taxpayers if his
Article 158 of Local Taxes and Charges Law which
objection, appeal, or request for case review is granted
stipulates the evaluation process of established
in part or in full. Interest compensation is also given for
regional regulations.
the notice of tax correction, the decree of the reduction
of tax assessment, the decree of the cancellation of tax
Article 114 of Job Creation Law also revises the
assessment that is granted in part or in full.
provisions under Article 159 and adds Article 159 A
In the former regulation, the interest repayment was which regulates penalties against regional regulations
given at a fixed rate of 2% per month and there was that violate the provisions on the evaluation of draft
no ceiling for the calculation of how many months the and established regional regulations.
interest repayment is granted. Currently, however, the
amount of monthly interest repayment refers to the
reference interest rate stipulated by the Minister of Accountability for the
Finance divided by 12 and is given for a maximum of
24 months. Implementation of the 2019 State
Budget
Moreover, Article 113 of Job Creation Law also revises
and adds provisions on the expiration of Notice of
The government has issued the accountability for the
Tax Collection (Surat Tagihan Pajak/STP) and new 2019 state budget (Anggaran Pendapatan dan Belanja
functions of STP. These provisions are outlined in
Negara/APBN). This is outlined in Law No. 8 of 2020
Article 14 paragraph (5a), (5b), and (5c). These
concerning the Accountability for the Implementation
changes essentially emphasize that the DGT may only
of the State Budget for Fiscal Year 2019 (Law No.
issue STP within a period of 5 years. In addition, an
8/2020).
STP can now be issued to collect interest repayment
that should not have been granted. The accountability has been issued to disclose
the management of state finances that has
Details of the changes to the additional articles of
been implemented openly and responsibly. The
General Tax Provisions and Procedures Law in Job
accountability for the 2019 state budget is outlined
Creation Law can be seen in the Comparison Matrix
in the 2019 Central Government Financial Report
between General Tax Provisions and Procedures Law
(Laporan Keuangan Pemerintah Pusat Tahun 2019/
and the Tax Cluster in Job Creation Law. Download
LKPP 2019). LKPP refers to a financial statement
here.
that is prepared and presented as per accrual-based
government accounting standards and is attached
with a summary of the financial statements of