DJP Strengthens KPP Supervision Function

JAKARTA. The Directorate General of Taxes (DJP) expands the role of the Small Tax Office (Kantor Pelayanan Pajak Pratama/KPP Pratama) in overseeing taxpayers’ compliance. This is stated in Decision of DGT number KEP-75/PJ/2020 concerning changes in the duties and functions of KPP Pratama.

In the regulation published on 20 February, DJP added a new role and function for KPP Pratama, specifically to collect and guarantee the quality of taxation data and information. This addition is aimed at exploring tax potentials in various regions more effectively.

Thus, as reported from Kontan.co.id, DJP expects the change in function can increase the state revenue, as the Account Representative (AR) can be more focused in exploring the potential of taxpayers who have not yet registered or who have not fulfilled their tax obligations.

Specifically, this function will be assigned to the Data and Information Processing Section, the Extensification and Consultation Section, and the Consultation Oversight Section III and IV in each KPP Pratama. Previously, these tasks and functions were only carried out by the Supervision and Consultation Section.

Formerly, DJP had also increased the number of KPP Pratama spread throughout Indonesia to 38 offices. This addition was made so that the supervision of large taxpayers in each region be more effective.

Calculating Potential

However, though this addition was stated to encourage state revenue, DJP did not mention the additional target of tax revenue from this policy. As reported by Bisnis.com, until now, DJP is still calculating the increase potential of the state revenue.

For the information, the tax revenue target set by the government in the 2020 State Budget is IDR1,642.57 trillion. This amount is 23.31% higher than the temporary realization in 2019, which was recorded at IDR1,332.06 trillion.