A.

Guidelines for Tax Examination

Guidelines for tax examinations is the Minister of Finance of the Republic of Indonesia No.199 /
PMK.03 / 2007 dated December 28, 2007 On Tax Inspection Procedures, these provisions set the
general policies and guidelines of tax audits
Norma

B. Examination Form
1. In connection with the Tax Audit in the Implementation of Field Inspections
a. Tax inspectors must have and show the taxpayer identification tax inspectors and furnished
with a warrant of tax audits.
b. Tax inspectors shall notify in writing and explain to taxpayers on will do the inspection, and
the purpose.
c. The results of the examination poured into paper checks (CTF)(Kertas Kerja Pemeriksa).
d. Tax inspector shall make a report of tax audit (LPP) based CTF.( Kertas Kerja Pemeriksa)
e. Tax inspectors shall notify the taxpayer in writing to the results of the investigation, in the
form of different things between the letter of notification to the results of the examination to be
taken by the taxpayer.
f. Tax inspectors are required to provide guidance to taxpayers regarding the conduct of the
books, records and other guidance regarding the fulfillment of tax obligations in connection with
the examination carried out, with the aim of organizing the books or records and fulfillment of
tax obligations in the next years in order to be implemented in accordance with applicable
regulations.
g. Tax inspectors are obliged to return the books, records and other supporting documents
borrowed from the taxpayer no later than 14 (fourteen) days from the completion of the
examination.
h. Tax inspectors are prohibited from telling others who are not entitled to, everything is known
or disclosed to him by the taxpayer.
2. In connection with the Tax Audit Office Inspection Framework
a. Tax inspectors use a summons signed by an authorized officer, calling the taxpayer to come to
the office of the Director General of Taxes appointed.
b. Tax inspectors shall notify the taxpayer that will be examined regarding the intent and purpose
of the examination.
c. The results of the examination poured into paper checks (CTF) ( Kertas Kerja Pemeriksa )
d. Tax inspector shall make a report of tax audit (LPP) based CTF.( Kertas Kerja Pemeriksa )
e. Tax inspectors shall notify in writing to the taxpayer of the results of the examination in the
form of things that are different between notification letter with the results of the examination.
f. Tax inspector shall provide guidance to taxpayers regarding the conduct of the books or
records and other clues, such as fulfillment of tax obligations in connection with the examination
carried out, with the aim of organizing the books or records and fulfillment of tax obligations in
subsequent years carried out in accordance with applicable regulations.
g. Tax inspectors are obliged to return the books, records and other supporting documents
borrowed from the taxpayer no later than 7 (seven) days after completion of the examination.
h. In order checks, tax inspectors are prohibited from telling others who are not entitled to,
everything is known or disclosed to him by the taxpayer.
3. In connection with the taxpayer
a. In terms of site inspection, the taxpayer is entitled to request tax audit for tax inspectors show
identification and warrant examination.
b. The taxpayer is entitled to request tax inspectors to provide an explanation of the purpose and
objective examination.
c. In the case of inspection offices, the taxpayer must fulfill the call to come to attend the
examination in accordance with the time and place specified.
d. The taxpayer shall fulfill request lending of books, records, and documents necessary for the
smooth running of the investigation and to provide information within a maximum period of
seven (7) days from the date of the request. If the request is not met by the taxpayer, the tax
payable can be calculated positions.
e. The taxpayer is entitled to request tax audit details relating to matters that differ between the
results of the examination of the notification.
f. Taxpayers or their proxies shall sign a statement of consent if the taxpayer agreed to all the
examination results.
g. In the case of a complete examination, taxpayers or their proxies shall sign the minutes of
examination, when the examination results were not or not fully approved.
h. In the framework of implementation of the inspection, the taxpayer shall implement the
provisions set forth in Article 29 of the Constitution No. 6 of 1983 on General Provisions and
Tax Procedures, as last amended by Act No. 16 of 2000.
4. In connection with the implementation of inspection
a. Checks can be done by one or more tax inspectors.
b. Examination held at the Directorate General of Taxation, in the office of the taxpayer, in other
offices, in factories, in businesses, in the work place is free, in the residence of the taxpayer or
elsewhere as determined by the Director General of Taxation.
c. Examination carried out during working hours, if deemed necessary, may extend outside
working hours.
d. The results set forth in the examination paper checks.
e. Tax audit report prepared on paper checks (CTF).( Kertas Kerja Pemeriksa)
f. The results of a field inspection entirely approved taxpayers or their proxies, made a statement
about the letter of consent signed by the taxpayer or by proxy.
g. The findings as the result of an exhaustive examination that is not or not fully approved by the
taxpayer, be discussing the final results of the examination (closing conference), and reported for
examination.
h. Based on the tax inspection report, issued tax assessments and tax bills, unless the examination
followed by action investigation.
C. Implementation of Examination
According to Article 1 point 3 and 4 PerMenKeu No. 199 / PMK.03 / 20071, invite the
inspection can be classified as:
1. Field Inspection (PL) is an examination conducted in the domicile, place of business or
independent, residence taxpayer, or any other place determined by the Directorate General of
Taxation. The examination period with the aim of testing the compliance of fulfillment of tax
obligations is a maximum of 4 months and can be extended into a maximum of 8 months from
the date Investigation Order until the date of Audit Reports. Field inspections may be carried out
no later than 2 years if there are indications of transfer pricing transactions or financial
engineering. While the examination period with another goal was the longest two months and
can be extended into a maximum of four months from the date Investigation Order until the date
of Audit Reports.
2. office Inspection (PK) is an examination conducted in the Office of the Directorate General of
Taxation. The examination period to test the compliance of fulfillment of tax obligations is a
maximum of 3 months and can be extended into a period of 6 months from the date the taxpayer
come meet the summons in order Examination Office until the date of Audit Reports.
Examination Office can be converted into a field inspection, if there are indications of transfer
pricing transactions or financial engineering. While the examination period to another destination
later than 7 days and can be extended to a maximum of 14 days from the date the taxpayer come
meet the summons in order Examination Office until the date of Audit Reports.