DGT Divides Tax Monitoring System into Two Segments

The Directorate General of Taxes (DGT) has divided the supervisory authority in each Tax Office (KPP) into two segments, the strategic taxpayer and other taxpayers based on region.

This is stated in the Decree of the Director General of Taxes Number KEP-151 / PJ / 2021, which was published and effective since its stipulation on 20 April 2021.

In this regulation, in detail the tax authorities determine the focus of supervision by each supervisory section in the tax office, ranging from the Large Tax Office, the Special Jakarta Regional Tax Office, all Medium Tax Offices, and Small Tax Offices.

Previously, in the Minister of Finance Regulation (PMK) Number 184/PMK.01/2020 the Minister of Finance Sri Mulyani had stipulated that each tax office must have six supervisory sections that are in charge of ensuring all taxpayers comply with their obligations.

However, based on the authority division, the portion of supervision by each section will not be the same. Except for the Large Tax Office, the Special Jakarta Regional Tax Office, and Medium Tax Offices which assign all sections to focus on supervising the strategic taxpayer segment.

As for each small tax office throughout Indonesia, only the supervision section I focuses on strategic taxpayers, the rest is authorized to supervise the segment of taxpayers based on the region.

In detail, the duties of each supervision section are required to conduct analysis, description, and management of taxpayer compliance in several ways, such as:

• Plan, implement and follow up on data-based intensification policies and do tax subject and object mapping
• Observe tax potential
• Master the information
• Seek, collect, process, research, analyze tax data
• Perform data update
• Follow up on data
• Supervise and control the quality of compliance
• Give appeals and counseling to taxpayers
• Manage supervisory administration such as the establishment and issuance of legal products

However, specifically for the supervision section at the Oil and Gas (oil and gas) tax office which is one of the special tax offices, apart from having to fulfill the mentioned obligations, it is also demanded to supervise compliance with Land and Building Tax (LBT) on oil and gas and  LBT of other sectors.