https://epajak.or.id/ How to File a Tax Objection According to PMK 118/2014 , How to file a tax objection is a process that taxpayers can do if they disagree with the tax assessment issued by the tax authority. This process provides an opportunity for taxpayers to submit reasons and evidence supporting their objection to the tax amount determined.
The submission of objections must be carried out in accordance with the procedures set out in the tax regulations, including time limits, supporting documents, and legal submission mechanisms.
By understanding how to file a tax objection, taxpayers can protect their rights and ensure that their tax obligations are fair and in accordance with their financial conditions.
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Procedures for Filing a Tax Objection
In the Minister of Finance Regulation (PMK) Number 118 Year 2024, it has been regulated in detail regarding how to file a tax objection by taxpayers. Here are the steps that must be considered:
1. Objection Submission by Taxpayers
Taxpayers who object to a tax assessment may file an objection by submitting an Objection Letter to the competent tax authority.
2. Objection Submission Requirements
In order to be processed, the objection
submission must fulfil the following requirements:
No Other Application
The taxpayer is not currently submitting an application as stipulated in:
Article 36 of the General Provisions and Tax Procedures Law (KUP);
Article 19 and Article 20 of the Land and Building Tax Law (PBB).
Objection
letter must be made in Indonesian language.
The letter must state the amount of tax payable, the amount of tax withheld or collected, the amount of loss, or the amount of PBB payable based on the taxpayer’s calculation.
The Taxpayer shall include the reasons on which the calculation is based.
One Objection for One Assessment
Each Objection Letter can only be submitted for one specific tax assessment, which includes:
Tax Assessment Letter (SKP);
Tax withholding or collection;
Tax Return Payable (SPT Terutang);
Land and Building Tax SKP (SKP PBB).
Tax Payment Prior to Objection Submission
If an objection is filed against the Surat Ketetapan Pajak Kurang Bayar (SKPKB) or Surat Ketetapan Pajak Kurang Bayar Tambahan (SKPKBT), the taxpayer is obliged to pay the accrued tax.
The amount to be paid is at least as much as agreed upon in the final discussion of the tax audit results before the Objection Letter is filed.
The
Objection Submission Deadline
must be submitted within 3 months from:
Date the SKP is sent;
Date the tax is withheld or collected by a third party;
Date the Tax Return
is received;
Date the SKP PBB is received.
If there are conditions beyond the control of the taxpayer that prevent submission within the time limit, the taxpayer may submit reasons that are acceptable to the tax authority.
Signature of Authorised Parties
The Objection Letter must be signed by the taxpayer, his legal representative, or his attorney.
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3. Suspension of Tax Payment
If an objection is filed against SKPKB or SKPKBT, then the unpaid portion of the tax that is not agreed upon in the final discussion of the audit results shall be suspended until 1 month from the date of issuance of the Objection Decision Letter.
4. Objection Does Not Delay Tax Payment Obligation
For objections filed against:
SPT Pajak Terutang, or
the same SKP PBB
does not provide a suspension of the obligation to pay the PBB payable. This means that even though an objection is filed, PBB payments must still be made in accordance with applicable regulations.
5. Format of Objection Letter The
Objection Letter must be prepared based on the sample format set out in Appendix Letter B of MoF Regulation Number 118 Year 2024. This format must be followed in order for the objection submission to be officially processed.
By understanding these provisions, taxpayers can submit tax objections in a more structured manner and in accordance with applicable regulations, thus increasing the possibility of objections being accepted by the tax authorities.
Also Read: Taxpayers Can Pay Taxes Using Deposit, Avoiding Late Payment Sanctions
Provisions and Scope of Tax Objection Submission
The rules regarding the procedure for filing tax objections and the scope of objection submission are regulated in Minister of Finance Regulation (PMK) Number 118 Year 2024. This regulation clarifies that taxpayers have the right to file objections to several types of tax assessments, namely:
Surat Ketetapan Pajak Kurang Bayar (SKPKB) – An assessment stating that the taxpayer still has unpaid tax obligations.
Surat Ketetapan Pajak Kurang Bayar Tambahan (SKPKBT) – An assessment stating that there is additional tax payable beyond the amount previously determined.
Surat Ketetapan Pajak Nihil (SKPN) – An assessment stating that the tax paid by the taxpayer is appropriate so that no tax remains to be paid or refunded.
Surat Ketetapan Pajak Lebih Bayar (SKPLB) – An assessment stating that the amount of tax paid is greater than it should be, so the taxpayer is entitled to apply for a refund of the tax overpayment (restitution).
Withholding or collection of tax by a third party – An objection can be filed if the taxpayer feels that the amount of tax withheld or collected by a third party is not in accordance with the provisions of tax regulations.
Tax Return (SPT) – An objection may be filed if there is a difference in the calculation of tax payable as reported in the SPT.
Land and Building Tax Assessment Letter (SKP PBB) – An assessment that determines the amount of Land and Building Tax (PBB) that must be paid by the taxpayer.
Read Also: Explanation of VAT Increase After PMK 131 Year 2024
Limitations in Filing Tax Objection
Although taxpayers have the right to file an objection, there are limitations regarding the aspects that can be disputed in the objection process. The method of filing a tax objection can only be submitted on the substance or material contained in the objection.
Limitations in Filing
a Tax Objection Although taxpayers have the right to file an objection, there are limitations regarding the aspects that can be disputed in the objection process. The method of filing a tax objection can only be submitted on the substance or material contained in the tax assessment, namely:
Amount of Tax Loss
If the tax assessment contains calculations that cause the taxpayer to incur a tax loss, an objection can be filed to adjust the amount of the loss in accordance with the applicable tax provisions.
The amount of tax to be paid Taxpayers
can file an objection if they feel that the amount of tax to be paid is not in accordance with the actual conditions based on applicable tax regulations.
Tax Withholding or Collection by Third Party
If the tax withheld or collected by a third party is not in accordance with the correct calculation, the taxpayer may file an objection to the amount that has been withheld or collected.
Objection may be filed if there is a difference in the determination of the amount of Land and Building Tax (PBB) payable
by the taxpayer.
However, it should be noted that reasons for objection that are not related to the material or content of the tax assessment will not be considered in the process of resolving objections by the DGT. In other words, if the objection is based on administrative, procedural, or other reasons that are not related to the substance of the tax assessment, the objection will not be considered in the process of resolving the objection by the DGT.