NAME : RAIHAN SHIDQI RADITIYA

STUDENT ID: 1910533024

GENERAL PROVISION & TAX PROCEDURES

1. Definitions in general provisions and taxation procedures.

Here are some common terms or definitions in discussing taxation pursuant to
section 1 of the Law No. 28 of year 2007.
1) Tax is a mandatory contribution to a country owed by a private person or a forced
body under law, by not being directly rewarded and used for state purposes for
the maximum prosperity People.
2) Taxpayers are individuals or entities that include taxpayers, tax cutters, and tax
collectors, who have tax rights and obligations in accordance with the provisions
of taxation laws and regulations.
3) The agency is a group of people and/or capital that is a unity, whether conducting
business or non-business, including limited liability company, company, other
company, state-owned enterprises or local enterprises, with names and in any
form, firms, partners, cooperatives, pension funds, alliances, associations,
foundations, time organizations, political organisations, or other organisations,
agencies and other body forms including collective investment contracts and
permanent establishment.
4) An entrepreneur is a person or entity in any form that is in any business activity
or its work produces goods, imports goods, exports goods, conducts trading
business, utilizes intangible goods from outside the customs area, Business, or to
provide services from outside the customs area.
5) Taxable entrepreneur is a businessman who performs the submission of taxable
goods and/or the submission of taxable service which is taxed under the value
Added Tax Act 1984 and its amendments.
6) Taxpayer identification number is the number given to the taxpayer as a
suggestion in the tax administration used as a personal identification or identity of
taxpayer in carrying out the rights and obligations of taxation.
7) The tax period is the period of time that is the basis for taxpayers to calculate,
deposit, and report taxes owed in a certain period of time as specified in this law.
 The tax period is equal to 1 (one) calendar month or other time stipulated by
regulation of the Minister of Finance for a period of 3 (three) calendar months.
8) Tax year is the period of 1 (one) calendar year, except when the taxpayer uses the
year of the book which is not the same as the calendar year.
9) The tax year section is part of the 1 (one) tax year period.
10) Taxes owed are taxes payable at a time, in the tax period, in the tax year and in
the tax year section in accordance with the provisions of taxation laws and
regulations.
11) The notice is a letter by the taxpayer being used to report the calculation and/or
payment of taxes, tax objects and/or non-tax objects, and/or property and
liabilities in accordance with the provisions of the taxation.
12) Time notice is a notification letter for a tax period.
13) The annual notification letter is a notification letter for a tax year or tax year
section.
14) The tax deposit letter is a proof of payment or withholding tax that has been done
using the form or has been done in a different way to the state treasury through a
designated payment place by the Minister of Finance.
15) The tax assessment letter is a letter of decree that includes a less pay tax
assessment, an additional underpayment tax assessment letter, a zero tax
determination letter, or a paying tax.
16) Tax provision letter less pay is a tax determination letter that determines the
amount of tax principal, tax credit amount. The lack of tax payment, the amount
of administrative sanctions, and the amount of tax that remains payable.
17) The additional less pay tax assessment letter is a tax assessment letter that
determines the addition of the specified tax amount.
18) Tax Provision letter nil is a tax assessment letter that determines the amount of
tax principal as large as the amount of tax credit or tax is not owed and no credit
tax.
19) A tax assessment letter on pay is a tax determination letter that determines the
amount of excess tax payment because the tax credit amount is greater than the
tax owed or it should not be owed.
20) A tax bill is a letter to perform tax bills and/or administrative sanctions in the
form of interest and/or fines.
21) The forced letter is a warrant of paying tax debts and tax collection fees.
22) Tax credits for income tax are taxes that are self-paid by the taxpayer coupled
with the tax principal owed in the tax bill as the income tax in the year is not or
under-paid, coupled with the tax is deducted or collected, coupled with taxes on
income paid or owed abroad, minus the overdue preliminary refund of excess
taxes, which is deducted from the taxes owed.
23) Tax credits for first-rate tax are credit inputs that can be credited after deducting
an excess tax return or after deducting the tax that has been compensated, which
is tax deductible.
24) Free work is a work undertaken by a personal person who has special skills as an
effort to earn income that is not bound by a working relationship.
25) Inspection is a series of activities to collect and process data, information, and/or
evidence conducted objectively and professionally based on a standard
examination to test compliance with tax obligations and/or for other purposes in
order to enforce the provisions of legislation.
26) Preliminary evidence is a condition, deed, and/or evidence of a description, a
plague or an object that may instruct the existence of a strong allegation that there
is or has occurred a criminal offence in the field of taxation conducted by anyone
who can inflict losses on state revenues.
27) Preliminary proof examination is an examination made to obtain preliminary
evidence of alleged criminal offence in the field of taxation.
28) The tax insurer is a personal person or entity responsible for the payment of taxes.
Including representatives exercising rights and fulfilling the taxpayer's
obligations in accordance with the provisions of taxation legislation.
29) Bookkeeping is a process of recording that is done on a regular basis to collect
data and financial information that includes assets, liabilities, capital, income and
expenses, and the amount of acquisition and delivery of goods or services, which
is closed By compiling financial statements in the form of a balance sheet and
income statement for the tax year period.
30) Research is a series of activities conducted to assess the completeness of the
replenishment of the notice and its attachments including assessments of the
correctness of writing and counting result.
31) Criminal investigation in taxation is a series of actions undertaken by
investigators to seek and gather evidence with evidence to create a criminal
offence in the field of taxation and find his suspects.
 32) Investigators are the officials of certain civil servants in the Directorate General
of Tax which is given special authority as an investigator to conduct investigation
of criminal acts in the field of taxation in accordance with the provisions of
legislation.
33) A letter of Correction decision is a decree that corrected the error of writing, error
counting, and/or the error of application of certain provisions in the taxation
legislation contained in the tax assessment letter, Tax Invoice, correction Decree,
decision letter of objection, administrative Sanctions reduction decree, letter of
deduction of the administrative sanction, tax deductible decision letter, Tax
Assessment decree, Excess tax refund decision letter, or the decision letter on
interest giving.
34) The decision letter of objection is a letter of objection to the tax-attorney letter or
against a deduction or poll by a third party filed by the taxpayer.
35) The appeal decision is the decision of the tax Justice body on appeal against the
decree of objection filed by taxpayer.
36) The ruling lawsuit is the decision of the tax Justice body on the lawsuit against
matters under the provisions of taxation legislation can be filed.
37) The verdict of reconsideration is the Supreme Court's decision to re-review the
proposed by the taxpayer or by the Director general of Taxes on the appeal award
or the lawsuit award of the tax judicial body.
38) Letter of preliminary refund of preliminary tax surplus is a decree that determines
the amount of preliminary refund of excess tax for certain taxpayers.
39) The decision letter of interest awarding is a decree that determines the amount of
interest reward given to the taxpayer.
40) Date Sent is the date the postage stamp of shipment, the fax date, or in the event
that it is delivered directly is the date at the time of the letter, decision, or verdict
delivered directly.
41) Date Received is the date of the postage stamp, the fax date, or in the case of the
received directly is the date at the time of the letter, decision, or ruling received
directly.

2. Definition of taxpayer identification number and tax registration number

Taxpayer identification number is a means in the tax administration which is
used as a personal identification or identity taxpayer, to maintain order in the
 payment of taxes and in the supervision of taxation administration. The taxpayer who
does not register to obtain the taxpayer identification number is subject to sanctions
in accordance with the provisions of regulation Perundangan-undangan taxation.
Meanwhile, taxable entrepreneur number is the identity number of taxable
entrepreneur (PKP) which is embedded when the entrepreneur is confirmed as PKP
through PKP confirmation letter. If the entrepreneur has obtained NPPKP, then the
PKP is declared to be officially a PKP and thus bound to the tax obligations reserved
for the PKP.
The NPWP consists of 15 digits, including the first 9 digits of the taxpayer code and
the next 6 digits of the Taxation Administration code. The Format is as follows:

3. NPWP Registration procedure and PKP confirmation number

Taxpayers (WP) fill in the registration form and deliver directly or by mail to the Tax
Service office (KPP) or the office of the Local taxation potential (KP4), with the
following provisions.
a) For WP private nonentrepreneur person
Photocopy of KTP for residents of Indonesia or photocopy of Passport plus
certificate of residence from the institution with minimum authority Lurah or
village head for foreigners.
b) For WP personal entrepreneurs
 1) Photocopy of ID CARD (KTP) for Indonesian residents or photocopy of
Passport plus certificate of residence from the institution with minimum
authority Lurah or village head for foreigners.
2) Certificate of Business activity or free work of the institution of a minimum
authority Lurah or village head.
c) For WP Agency
1) Photocopy of Deed of establishment and final amendment or certificate of
appointment from the head office for BUT.
2) Photocopy of ID CARD for residents of Indonesia or photocopy of Passport
plus certificate of residence from the institution with minimum authority
Lurah or village head for foreigners, from one foreign administrator.
3) Certificate of business activities from the institution with a minimum
authority Lurah or village head.
d) For Treasurer as a collector/cutter
1) Photocopy of ID CARD treasurer.
2) Photocopy of appointment letter as treasurer.
e) For joint operation as taxpayer cutter/collector.
1) Photocopy of cooperation agreement as joint operation.
2) Photocopy of NPWP each member of joint operation.
3) Photocopy of ID CARD for Indonesian residents or photocopy of Passport
plus certificate of residence from the institution with minimum authority
Lurah or village head, for foreigners, from one of the joint operation officers.
f) Taxpayers with the status of a branch, a certain personal person or woman who
marries Unsplit property must attach a photocopy of a registered certificate.
g) If the petition is signed another person must be equipped with a special
authorization letter.

4. NPWP and NPPKP Registration place

The NPWP registration site is:
1) For personal taxpayers, it is the Directorate General of Taxation whose working
area includes the residence or seat of taxpayer.
2) For taxpayer body, is the seat/business taxpayer
While the business reporting and inaugural place for taxable entrepreneur is:
 1) For personal people entrepreneurs, it is at the Office of the Directorate General
of Taxation whose working area includes the seat of employers and the place of
business activities.
2) For employers agency, is the Office of the Directorate General of Taxation
whose area of work includes the seat of employers and the place of business
activities undertaken.
3) For entrepreneurs of individuals or entities who have a place of business
activities in several areas of the Directorate General of Taxation Office, is good
in the Office of the Directorate General of Taxation whose work area includes
the position of the And in the Office of the Directorate General of Taxation
whose working area includes the place of business activities undertaken.
4) For personal taxpayers of certain entrepreneurs (i.e. taxpayers who have
businesses scattered in several places, such as electronic merchants who have
shops in several shopping centers), the obligation to report their business in The
Directorate General of Taxation whose working area includes a taxpayer's
residence also in the Office of the Directorate General of Taxation whose
working area includes the taxpayer's business activities.
5) For certain taxable entrepreneurs, the Director general of taxation may determine
the Office of the Directorate General of tax as the registration of taxable
entrepreneur confirmation of tax on certain taxpayers.

5. Registration of NPWP and NPPKP via electronic.

Registration of NPWP by taxpayer can also be done electronically, that is
through the Internet on the website of the Directorate General of tax with HTTP
address http://www.pajak.go.id by clicking on e-registration (taxpayer registration
via Internet); Taxpayers simply enter personal data (KTP/SIM/passport) to be able to
obtain an NPWP. You can then send a photocopy of the personal data to KPP whose
working area includes a residential or a taxpayer position. Here are the steps to get
NPWP over the Internet (electronic registration).
1) Search the website of the Directorate General of Tax on Internet
www.pajak.go.id.
2) You then select the E-reg (Electronic registration) menu.
3) Select the "Create New Account" menu and fill in the fields as requested.
 4) You will then go to the "Personal person taxpayer registration form" menu.
Please fill in your KTP.
5) You will obtain a temporary registered certificate (SKT) which is valid for 30
(thirty) days from the date of registration. Print the temporary SKT along with the
personal taxpayer registration form as proof you have been registered as
taxpayers.
6) Sign the registration form, then send/deliver directly with the temporary SKT and
other requirements to the Tax Service office as stated in your temporary SKT.
After that, you will receive the original NPWP and SKT card.
6. NPWP Removal
The elimination of NPWP is conducted by the Directorate General of Taxation if:
1) Submitted application for the elimination of NPWP by taxpayer and/or its heirs if
taxpayer has not fulfilled the subjective and/or objective requirements in
accordance with the provisions of taxation legislation.
2) Taxpayers are liquidated due to termination or merger of the business.
3) Taxpayers continue to cease business activities in Indonesia.
4) The taxpayer is a private woman who is married and does not carry out its own
tax obligations.
5) Taxpayers whose piutis removed as a result of having no wealth or death without
inheritance.
6) Deemed necessary by the Director-General of taxation to remove the taxpayer
from taxpayers who have not fulfilled the subjective and/or objective
requirements in accordance with the provisions of taxation laws and regulations.
The Director general of Taxation after conducting a check shall provide a
decision on the application for the elimination of NPWP within 6 (six) months for
the taxpayer's personal or 2 (twelve) months for taxpayer body. From the date of
application

7. Revocation of NPPKP
The revocation of taxable entrepreneur is conducted by the Directorate of Taxation if:
1) Taxable entrepreneurs are moving addresses to other KPP shade;
2) Taxable entrepreneurs misuse the confirmation;
3) Gross distribution of taxable entrepreneurs does not exceed the limitation of
small entrepreneurs;
 4) Taxable entrepreneur's VAT obligations are centered elsewhere.
The revocation of confirmation of PKP must be completed within 6 months from
the date of receipt of complete application.

8. Procedures for registration and elimination of NPWP and confirmation and

revocation of NPPKP with E-Registration system.
Things to note regarding the procedure of registration and elimination of
NPWP and confirmation and revocation of NPPKP (according to the decision of the
Directorate General Tax Number KEP-173/PJ./2004) is regulated as follows.
1) Taxpayer applying for the registration and/or reporting of business activities to be
confirmed as taxable entrepreneur through e-Registration system will get the
taxpayer registration form and certificate of temporary registered by way of
taxpayers to print themselves through e-Registration system.
2) Temporary registered certificate is only valid for 30 (thirty) days from the date of
registration and is only valid for payment, deduction and withholding tax by
another party, and cannot be used to conduct activities outs
3) The registration form of taxpayer that has been signed and the terms submitted to
the Tax Service office where the taxpayer is registered for at least 30 (thirty) days
from the application idea the Tax sector.
4) If the taxpayer registration form has been signed and the requirement has not
been received within 30 (thirty) days since the application is done, the application
process will be canceled on the system.
5) The Tax Service Office publishes the NPWP card and the registered certificate at
least 1 (one) day after the taxpayer registration form that has been signed and the
terms are fully accepted.
6) In the event that the taxpayer registers and reports the business to be confirmed as
a taxable entrepreneur, the Tax Service office of the registered taxpayer publishes
simultaneously the NPWP card, the registered certificate letter and the The
confirmation of the taxable entrepreneur at the earliest 3 (three) business days
following the taxpayer registration form and its requirements are fully accepted.
7) Based on the approval process through e-Registration system, the Tax Service
office where the taxpayer is registered will send the NPWP card (KP. PDEP. 4.4-
00) and Certificate of registered (KP. PDIP. 4.2-00) and/or a taxable entrepreneur
confirmation letter (KP. PDIP. 4.3-00) by mail to the taxpayer's address, or by
 notification transmitted by the E-Registration system, the taxpayer or the power
may take the document himself to the Tax Service office.
8) Taxpayers who have registered and do not have access to the E-Registration
system, can apply for access to E-Registration of the corresponding NPWP to the
Tax Service office where the taxpayer is registered to carry proof of Applicable
registration.