Guide to SKPKB (Underpayment Tax Assessment) in Indonesia: Article 13 KUP, Penalties, and How to Respond

Summary

An SKPKB (Surat Ketetapan Pajak Kurang Bayar) is the Indonesian tax authority's underpayment assessment, issued after an audit. The legal basis sits in Article 13 of the KUP Law, with technical procedures set out in MoF Reg. 80/2023. An SKPKB carries an administrative penalty in the form of either monthly interest (capped at 24 months) or a flat surcharge (commonly 75% or 100%), depending on the tax type and the root cause. Taxpayers still have response rights: correction, objection, and appeal to the Tax Court.

What an SKPKB Is

An SKPKB is a tax assessment that determines the principal tax, tax credit, underpayment amount, administrative penalty, and the total tax payable. It is an enforceable bill from the DGT, based on an audit or research.

It is different from an STP, which only collects existing administrative penalties without adding new principal tax. An SKPKB, in contrast, asserts new principal tax plus the penalty.

Legal Basis

Article 13 of the KUP Law (Law 28/2007 as last amended by Law 7/2021 on Tax Harmonization/HPP) is the primary reference. Technical procedures for issuance are in MoF Reg. 80/2023 on the Issuance of Tax Assessment Notices and Tax Collection Notices.

Key article references:

• Article 13(1): conditions for issuing an SKPKB.
• Article 13(2): interest penalty.
• Article 13(3): surcharge penalty.
• Article 13(4): 5-year issuance window.

When the DGT Issues an SKPKB

Under Article 13(1), the DGT may issue an SKPKB in five main scenarios:

1. The audit shows tax was underpaid or unpaid.
2. The tax return (SPT) was not filed within the deadline and remained unfiled after a written warning.
3. The audit of VAT and Sales Tax on Luxury Goods (PPnBM) shows that excess credit should not have been compensated or the 0% rate should not have applied.
4. Bookkeeping obligations were not met, so the tax due cannot be determined.
5. The taxpayer was registered for a Tax ID (NPWP) or as a VAT-able entrepreneur (PKP) on an ex officio basis.

The issuance window is five years from the date the tax became due or from the end of the relevant tax period/year (Article 13(4)).

Penalty Types in an SKPKB

Interest Penalty (Article 13(2))

For an SKPKB resulting from a regular income tax audit, the penalty takes the form of monthly interest. The Minister of Finance sets the rate using the formula: benchmark interest rate plus 20%, divided by 12. The rate that applies is the one in force on the date the penalty calculation begins.

Interest accrues from the date the tax became due or the period ended until the SKPKB is issued. Part of a month is treated as a full month. The interest period is capped at 24 months.

Surcharge Penalty (Article 13(3))

For specific conditions (for example, an unfiled SPT after a written warning, inadequate bookkeeping, or ex officio NPWP/PKP registration), the penalty is a flat surcharge, broadly:

• 50% of income tax underpaid in one tax year (pre-HPP rules). The HPP Law restated the income tax surcharge; check the current Article 13 text for the applicable year.
• 100% of income tax that should have been withheld or collected, or that was withheld/collected but not (fully) remitted.
• 100% of VAT and PPnBM underpaid.

The classification can shift across KUP amendments. Always refer to the version of the KUP Law in force for the relevant tax year.

Worked Example

PT A underpaid corporate income tax for tax year 2024. The audit determined the shortfall at IDR 100,000,000. The SKPKB was issued 24 months after the end of tax year 2024. Assume the monthly interest penalty rate is 2%.

• Underpaid principal: IDR 100,000,000
• Interest: 24 months x 2% x IDR 100,000,000 = IDR 48,000,000
• Total SKPKB bill: IDR 148,000,000

If the issuance condition falls under Article 13(3) (for example, no SPT after a warning), a flat surcharge replaces interest, with the percentage tied to the tax type.

How to Respond to an SKPKB

If you receive an SKPKB, work through these steps:

1. Check the basis. Confirm the tax year is within the 5-year window (Article 13(4)) and the tax type matches your records.
2. Reconcile the numbers. Compare the principal and penalty figures against the audit working papers. Ask the examiner for clarification on any gap.
3. Pay within one month if you agree. The settlement window is one month from issuance (Article 9(3) of the KUP Law). Beyond that, collection interest starts to run.
4. File an objection if you disagree. The right of objection is in Article 25. The deadline is 3 months from the date the SKPKB is issued, except in force majeure. While the objection is pending, you must pay at least the amount agreed in the closing conference of the audit.
5. Appeal to the Tax Court if the objection is denied (Article 27). The appeal deadline is 3 months from the date you receive the decision on objection.

For small, clearly clerical errors (typos or calculation slips), use the correction route under Article 16, which is faster.

SKPKB vs SP2DK

An SP2DK is a request for clarification, not a binding assessment. An SKPKB is an enforceable assessment and the legal basis for active collection. If an SP2DK is ignored or the response is unconvincing, the DGT may move to a full audit that can end in an SKPKB.