Government Regulation Number 55 of 2016 regarding General Provisions and Procedures for the Imposition of Regional Taxes

There are two types of Regional Tax according to this Government Regulation, namely Provincial Taxes and Regency/City Taxes. The two types of Regional Taxes are further classified into two groups, namely collected Regional Taxes and self-assessed Regional Taxes, which are further elaborated by mentioning the taxes classified into the two types and the two groups.

This regulation also contains provisions on the determination of tax amount, payment, reporting and assessment of payable taxes, including the procedures for their implementation, as well as procedures for tax payable collection and write-off. Furthermore, with regard to tax dispute, this regulation also sets out provisions on the procedures for the submission of objection and appeal, including the time frame for the submission of objection and appeal.

There are also provisions requiring taxpayer having a minimum turnover of Rp. 300,000,000.- per year to maintain bookkeeping and records, which must at least contain sales data and supporting documents required for the calculation of taxes payables. In relation to such obligation, this regulation also sets out provisions on audit for ensuring taxpayers’ compliance in fulfilling their regional tax obligations.

This Government Regulation has come into effect as of 22 November 2016.



Tax On Retained Earnings
Tax On Retained Earnings

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