Minister of Finance Sri Mulyani Indrawati determines the amount of tax administration sanctions per month by stages, from 0.53% to 1.78% of the underpaid amount, adjusting to the type and weight of administrative wrongdoings. The amount of the interest sanction is valid for the period December 1 - December 31, 2020, and will be evaluated periodically for the following months.
The determination of the amount of administrative sanctions is stipulated in the Decree of the Minister of Finance (KMK) Number 52 / KM.010 / 2020. Through this regulation, the Minister of Finance also sets the amount of interest compensation of 0.53% per month for the late refund of the tax overpayment, which applies for the same period.
Read: These General Provisions on Taxation are Overhauled in the Omnibus Law
The basis for determining administrative sanctions and interest compensation refers to the movement of the applicable benchmark interest rate following the issuance of Law No. 11 of 2020 on Job Creation, which amends a number of clauses in the Law on Taxation General Provisions and Procedures (KUP). With the change in the basis of calculation, the amount of sanctions and interest compensation for the next month will be lower than the previous one pegged at 2% per month.
There are at least four levels of administrative sanctions, covering 11 types of violations under the KUP Law, in accordance with PMK Regulation Number 52/ PMK.010/ 2020.
Interest Sanction of 0.53%
- On tax underpayment based on Tax Underpayment Assessment Notice (SKPKB), Additional Tax Underpayment Assessment Notice (SKPKBT), Notice of Tax Correction (Surat Keputusan Pembetulan), Objection Decision Letter (Surat Keputusan Keberatan), and Decision on Appeal or Decision of Judicial Review (Article 19 paragraph 1)
- On tax underpayment as the taxpayers pay in installments or delay the tax payments. (Article 19 paragraph 2)
- On tax underpayments that are discovered when the taxpayer delays the submission of the Annual Tax Return. (Article 19 paragraph 3)
Interest Sanction of 0,94%
- On additional tax payable due to the correction of the annual tax return. (Article 8 paragraph 2)
- On additional tax payable due to the correction of the periodic tax return. (Article 8 paragraph 2a)
- On the delay in paying taxes, or after the maturity (Article 9 paragraph 2a)
- On the late payment of tax underpayment, which must be completed before the submission of income tax return (Article 9 paragraph 2b)
- On not paying or underpaying of income tax in the current year, due to mis-writing or miscalculation. (Article 14 paragraph 3)
Interest Sanction of 1.36%
- On tax underpayment arising from the voluntary disclosure of untruthfulness in SPT filling. (Article 8 paragraph 5)
Interest Sanction of 1,78%
- On violations of tax obligation based on the results of audits or because the tax authorities in an ex officio issue a Tax ID Number (TIN) and confirmed as a VAT-Registered Persons (PKP). (Article 13 paragraph 2)
- On violation, because the taxpayer does not deliver or export taxable goods or services, as well as crediting the input tax. (Article 13 paragraph 2a)
Interest Compensation of 0,53%
As for the DGT's delay in returning the tax overpayment, the Minister of Finance also determined the amount of the interest compensation of 0.53% per month, which is the taxpayer's right. The compensation is given in relation to the following three conditions:
- The government is late in returning the overpayment of tax (restitution), which should be done a maximum of 1 month. (Article 11 paragraph 3)
- The government is late in issuing Tax Overpayment Assessment Notice (SKPLB), which should be done a maximum of 12 months after the application is complete. (Article 17B paragraph 3)
- The government is late in issuing Tax Overpayment Assessment Notice (SKPLB) on restitution applications or other applications because the process of examination of preliminary evidence does not continue or the court's decision declares it free. (Article 17B paragraph 4)
