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Tax Glossary
Tax Base (DPP)
The Tax Base (DPP) is the selling price, compensation, import value, export value, or other value used to compute VAT due. Governed by Article 1 paragraph 17 and Article 8 of the VAT Law. Typically, DPP equals the selling price excluding VAT. For specific transactions, DPP uses alternative values set by the Minister of Finance (PMK No. 75/PMK.03/2010), such as for used motor vehicles, travel agencies, courier services, or disposal of assets not originally intended for sale.
Tax Glossary
Output Tax (Pajak Keluaran)
Output Tax (Pajak Keluaran) is the VAT that a PKP must collect when supplying taxable goods (BKP), taxable services (JKP), or exporting. Governed by Article 1 paragraph 25 of the VAT Law. Output Tax = DPP x applicable VAT rate. Collection must be evidenced by a Tax Invoice. The difference between Output Tax and Input Tax is either the amount to remit (if PK > PM) or the overpayment to claim back (if PM > PK).
Tax Glossary
e-Faktur (Electronic Tax Invoice)
e-Faktur is an electronic Tax Invoice created through the DJP's e-Faktur application. Governed by PER-03/PJ/2022. e-Faktur rollout began in 2014 and is now mandatory for all PKPs in Indonesia. Each e-Faktur contains a QR code and unique reference number for easy verification. Failure to issue a compliant e-Faktur can result in a penalty of 2% of the Tax Base (DPP) under Article 14 paragraph (4) of UU KUP. Submission to the DJP is automated within the e-Faktur system.
Tax Glossary
Tax Administrative Sanctions
Tax Administrative Sanctions are penalties imposed on taxpayers who violate tax administrative provisions, consisting of fines, interest, and surcharges. Governed by Articles 7-15 of UU KUP. Types: Fines (e.g., Rp 100,000 for late individual return; Rp 1,000,000 for corporate; 2% of DPP for non-compliant e-Faktur); Interest (2% per month on late tax payments, max 24 months per Article 9 paragraph 2b UU KUP); Surcharges (50% or 100% of underpaid tax depending on circumstances). Criminal sanctions are separate and regulated differently.