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Tax Glossary
Tax Underpayment Assessment (SKPKB)
An SKPKB (Tax Underpayment Assessment) specifies the principal tax, tax credits, shortfall, administrative penalties, and total tax still due. Governed by Article 13 of UU KUP. DJP issues an SKPKB when: an audit reveals underpayment; an annual return is not filed within the deadline; other information shows tax unpaid or underpaid; bookkeeping obligations are unfulfilled. SKPKB penalties: 2% monthly interest (max 24 months) or a 50-100% surcharge depending on the tax type and grounds for issuance.
Tax Glossary
Tax Assessment Letter (SKP)
A Tax Assessment Letter (SKP) encompasses SKPKB (underpayment), SKPKBT (additional underpayment), SKPLB (overpayment), and SKPN (nil). Governed by Article 1 paragraph 15 of UU KUP (No. 28/2007). SKPs are issued by the DJP after auditing or examining a taxpayer's return. The statute of limitations for issuing an SKP is 5 years from the end of the tax period or year. Taxpayers who disagree may file an objection within 3 months of the SKP date.
Tax Glossary
Advance Refund of Tax Overpayment (Pengembalian Pendahuluan)
An advance refund of tax overpayment is the disbursement of overpaid tax to the taxpayer through formal review (penelitian) rather than full audit (pemeriksaan). This mechanism provides a fast track for taxpayers meeting specific criteria or requirements as set out in Articles 17C and 17D of the General Tax Provisions Law (UU KUP), and Article 9(4c) of the VAT Law (UU PPN). The technical procedure is governed by PMK 28 of 2026, effective 1 May 2026, which revokes a chain of earlier regulations from PMK 39/2018 through PMK 119/2024. After disbursement, the Directorate General of Taxes retains the right to conduct an audit for substantive verification. If a shortfall is found, an Assessment of Underpayment (SKPKB) and penalties will be issued.
Tax Guides
Indonesia Tax Refund Guide: Eligibility, Procedure, and How to File
A complete guide to Indonesian tax refunds: legal basis (UU KUP, UU PPN, PMK 28/2026), advance vs regular refund mechanisms, eligibility for each taxpayer category, how to file via Coretax, plus worked examples and FAQ.
Tax Glossary
Tax Objection
A Tax Objection is a legal remedy filed by a taxpayer with the DJP when disagreeing with a tax assessment or third-party withholding. Governed by Article 25 of UU KUP. Requirements: written in Indonesian, states the desired tax amount, provides clear reasons, filed within 3 months of receiving the SKP or withholding. Filing an objection does not suspend payment of the disputed tax. DJP must decide within 12 months. If the objection is rejected and the taxpayer does not appeal, a 50% surcharge applies.
Tax Glossary
Tax Assessment Statute of Limitations
The Tax Assessment Statute of Limitations sets the deadline for DJP to issue an SKP. Under Article 13 of UU KUP, DJP may not issue an SKP more than 5 years after the end of the tax period, partial tax year, or tax year. However, the limitation is extended to 10 years if the taxpayer is proven to have committed a tax crime. After the limitation expires, DJP loses the right to assess or collect tax for that period. The collection statute of limitations is separately regulated under Article 22 of UU KUP at 5 years from SKP issuance or tax debt arising.