In the Draft Law (Bill) on Taxation Provisions and Facilities which will revise Laws Number 6 Year 1983, Number 7 Year 1983, and Number 8 Year 1983, the government will re-regulate taxation administrative sanctions. There are several discussion points related to taxation administrative sanctions.
At the moment, the interest on underpayment due to a correction to annual and periodic tax returns is 2% per month of the underpaid tax. In the Bill, the interest will be calculated based on the benchmark interest rate plus 5% divided by 12. In addition, the interest on underpayment due to the stipulation of tax assessment letter will be changed from 2% per month of the underpaid tax to the benchmark interest rate plus 10% divided by 12.
In relation to negligence or delay in making a tax invoice, a taxable entrepreneur is subject to a sanction of 2% of the tax imposition basis. The sanction will be changed to 1% of the tax imposition basis. Meanwhile, at the moment, there is no administrative sanction for entrepreneurs which does not report their business to be confirmed as taxable entrepreneurs. In the Bill, the government regulates a sanction for those entrepreneurs, namely 1% of the tax imposition basis.