Sunday, 25 March 2012 - 20:18

The main duties of the Directorate General of Taxes (DGT) in accordance with the mandate under the Regulation of the Minister of Finance Number 184/ PMK.01/2010 regarding Organization and Work Procedures of the Ministry of Finance are to formulate and implement technical policies and standardization in the area of taxation. In executing its main tasks DGT performs the function of:
a. preparing policy formulation of the Ministry of Finance in taxation area;
b. implementing tax policies;
c. preparing standards, guidelines, manuals, criteria and procedures in taxation area;
d. providing technical guidance and evaluation in taxation area; and
e. performing tax administration.

DGT organization consists of head office unit and operational office unit. Head office unit consists of the Secretariat of the Directorate General, Directorates, and senior advisor positions. Operational office unit consists of Regional Tax Offices, Tax Offices, Tax Service, Counseling and Consultation Offices, and Data Processing Center.

DGT organization, with a total operational offices of more than 500 units and total number of employees of more than 32,000 spreading throughout the archipelago, is the largest Directorate General within the Ministry of Finance. Those resources are empowered in order to secure tax revenue which is becoming higher each year.

Main Tasks of Units within DGT Head Office

  1. Secretariat of Directorate General
    To coordinate the task engagement and to guide as well as provide administrative supports to all units within DGT.
  2. Directorate of Taxation Regulations I
    To formulate and to implement policies and technical standardization in General Provisions and Tax Procedures, Tax Collection with Coerce Warrant, Value Added Tax and Sales Tax on Luxury Goods, Other Indirect Taxes, Land and Building Tax, and Acquisition Duty of Right on Land and Building.
  3. Directorate of Taxation Regulations II
    To formulate and to implement policies and technical standardization in Income Tax regulations, tax treaty and international cooperation, legal assistance, and harmonization of tax regulation.
  4. Directorate of Audit & Collection
    To formulate and to implement policies and technical standardization in tax audit and collection.
  5. Directorate of Intelligence & Investigation
    To formulate and to implement policies and technical standardization in intelligence and investigation.
  6. Directorate of Extensification & Appraisal
    To formulate and to implement policies and technical standardization in tax extensification and appraisal.
  7. Directorate of Objection & Appeal
    To formulate and to implement policies and technical standardization in objection and appeal.
  8. Directorate of Potency, Compliance, & Revenue
    To formulate and to implement policies and technical standardization in potency, compliance, and revenue.
  9. Directorate of Counseling, Service, & Public Relation
    To formulate and to implement policies and technical standardization in counseling, service, and public relation.
  10. Directorate of Tax Information Technology
    To formulate and to implement policies and technical standardization in tax information technology.
  11. Directorate of Internal Compliance & Apparatus Transformation
    To formulate and to implement policies and technical standardization in internal compliance and apparatus transformation.
  12. Directorate of Information & Communication Technology Transformation
    To formulate and to implement policies and technical standardization in information and communication technology transformation.
  13. Directorate of Business Process Transformation
    To formulate and to implement policies and technical standardization in business process transformation.
  14. Senior Advisor for Tax Extensification & Intensification
    To review and study issues in tax extensification and intensification and provide conception solution rationing.
  15. Senior Advisor for Tax Service
    To review and study issues in tax service and provide conception solution rationing.
  16. Senior Advisor for Human Resources & Development
    To review and study issues in human resources development and provide conception solution rationing.
  17. Senior Advisor for Tax Supervision & Law Enforcement
    To review and study issues in tax supervision and law enforcement and provide conception solution rationing.

Regional tax office performs the tasks of coordinating, controlling, analyzing and evaluating the tax office operations, and elucidation of policies from the head office. The type of regional tax office is differentiated into:
a. Large Taxpayer Regional Tax Office and Jakarta Special Regional Tax Office located in Jakarta; and
b. regional tax offices other than Large Taxpayer Regional Tax Office and Jakarta Special Regional Tax Office consisting of 29 regional tax offices located throughout Indonesia.
Number of Regional Tax Office: 31 unit.

Tax office performs the functions of delivering services, counseling, and supervision to taxpayers. Based on the taxpayer segmentations, tax office can be differentiated into:
a. large taxpayer office (LTO) administering national large corporate taxpayers, state-owned enterprises, and high wealth individuals;
b. medium taxpayer office (MTO) administering regional large corporate taxpayers, foreign investment companies; permanent establishment and expatriates, and public listed companies;
c. small taxpayer office (STO) serve local individual and corporate taxpayers.
Number of Large Taxpayer Office: 4 unit, Medium Taxpayer Office: 28 unit, Small Taxpayer Office: 299 unit.

Because of large territory, some STO are supported by Tax Service, Counseling, and Consultation to local community in remote regions.
Number of Tax Service, Counseling & Consultation Office: 207 unit.

DGT also has Data Processing Center. This unit is located in Jakarta with main tasks of receiving, scanning, recording and storing tax documents using information technology.