Summary of Circular Letter of the Director General of Taxation Number SE-13/PJ/2019 regarding Implementing Guideline on the Examination of Evidence of the Fulfillment of Obligation to Pay Income Tax on Incomes from the Transfer of Right to Land and/or Building, and Amendments to Land and/or Building Sale and Purchase Commitment Agreements for Developer Taxpayers

This circular letter provides a guideline on the procedure for implementing the examination of evidence of the fulfillment of obligation to pay income tax (PPh) on incomes from the transfer of right to land and/or building, and land and/or building sale and purchase commitment agreement (PPJB) for taxpayers the business activities of which are to transfer right to land and/or building.

Individual or corporate taxpayers which have fulfilled the obligation to pay PPh on incomes from the transfer of right to land and/or building or amendments to land and/or building PPJB must submit an application for the examination of evidence of the fulfillment of obligation to pay PPh to a Tax Service Office (KPP) or the Taxation Service, Counseling and Consultation Office (KP2KP). Taxpayers in this regulation include developer taxpayers.

Developer taxpayers are taxpayers registered at KPP the working area of which includes the location of land and/or building and the main business of which is to make the transfer of right to land and/or building, proven by the industrial classification of the taxpayers.

The examination is divided into a formal examination and material examination. A formal examination is conducted in order to examine the completeness and conformity of file of the application for formal examination of evidence of the fulfillment of obligation to pay PPh on incomes from the transfer of right to land and/or building or amendments to land and/or building PPJB submitted by the developer taxpayers or their proxies. This examination is conducted by a Small KPP or KP2KP. The steps to conduct a formal examination is regulated in this circular letter, starting from submitting an application file to an officer of the place for integrated service up to material examination the provisions of which are regulated in Circular Letter of the Director General of Taxation Number SE-40/PJ/2017.

This circular letter comes into effect on 31 May 2019.

 

 

 

Source https://legalcentric.com/content/view/141149

Accounting Policy On The Writing-Off Of Expired Tax Receivables
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