Indonesia tax: Director General of Taxation issued a regulation

The Indonesian Director General of Taxation has issued a regulation on the procedure for the application and process of tax objections. The regulation, which is effective as from 7 September 2009, allow taxpayers that wish to submit a tax objection application letter to use a formatted form prepared by the tax authorities to ensure the taxpayer meets the formal requirements for submitting an objection.

The purpose of the regulation is to prevent application rejections simply because the taxpayer failed to provide the required information. Although it is not mandatory to submit this form together with the tax objection application, it is prudent to do so.

The regulation sets a 10-day deadline for the tax authorities to respond to a request from a taxpayer for a written explanation of the basis of tax assessments (i.e. 10 working days from the date the authorities receive the letter from the taxpayer).