Confirmation on Nullification of Interest Compensation for Taxpayers that have submitted Asset Declaration for Tax Amnesty

On June 5, 2017, the Director General of Tax (“DGT”) issued a letter No. S-268/PJ.02/2017 (“S-268”) on affirmation of nullification of interest compensation to the taxpayers that have submitted Asset Declaration Letters for Tax Amnesty Purposes.

Letter S-268 is issued as a confirmation of the provisions as stipulated in Article 17 (3) of Tax Amnesty Law No. 11 Year 2016, which states that the interest compensation for a taxpayer that has submitted an Asset Declaration for tax amnesty purposes must be nullified.

Specifically, S-268 states that the interest compensation is nullified as long as a Fund Disbursement Order (Surat Perintah Pencairan Dana-SP2D) has not been issued by the Treasury Services Office (Kantor Pelayanan Perbendaharaan Negara – KPPN). The procedures for elimination of interest compensation are summarized as follows:

  • a. In the event the taxpayer has submitted a letter to claim the interest compensation to the tax office, but the head of the tax office has not issued the Decision Letter of Interest Payment (“SKPIB”), the head of the tax office shall notify the taxpayer that the interest compensation cannot be granted.
  • b. In the event the taxpayer has submitted a letter to claim the interest compensation to the tax office and the head of the tax office has issued SKPIB but the Decision Letter of Interest Payment Calculation (“SKPPIB”) and Interest Repayment Order (“SPMIB”) have not been issued, the head of the tax office shall issue minutes of cancellation of SKPPIB and notify the taxpayer that the interest compensation cannot be granted.
  • c. In the event the taxpayer has submitted a letter to claim the interest compensation to the tax office and the head of tax office has issued SKPIB, SKPPIB and SPMIB but these have not been submitted to KPPN, the head of the tax office shall issue minutes of SKPPIB cancellation and notify the taxpayer that the interest compensation cannot be granted.
  • d. In the event the taxpayer has submitted a letter to claim the interest compensation to the tax office and the head of the tax office has issued SKPIB, SKPPIB and SPMIB and has submitted them to KPPN, the tax office shall request a confirmation to KPPN on whether the SP2D on SPMIB has been issued before the taxpayer submitted the tax amnesty, and:
    • i) In the event the KPPN has issued SP2D before the asset declaration submission date, then the taxpayer is eligible for the interest compensation; or
    • ii) In the event of KPPN has not issued the SP2D, the head of tax office shall:
      a) prepare the minutes of SKPIB cancellation;
      b) submit the minutes of SKPIB cancellation to KPPN; and
      c) notify the taxpayer that the interest compensation cannot be granted.