Tax Assessment Correction

You can apply to the Director General of Taxes to correct:

Notices of Tax Assessment

  1. Notices of Tax Assessment, including Notices of Tax Underpayment Assessment, Notices of Additional Tax Underpayment Assessment, Notices of Nil Tax Assessment, and Notices of Overpayment Assessment;
  2. Notices of Tax Collection;
  3. Notices of Correction Decision;
  4. Notices of Decision on Objection;
  5. Notices of Administrative Penalty Reduction Decision;
  6. Notices of Administrative Penalty Annulment Decision;
  7. Notices of Tax Assessment Reduction Decision (could be in the form of Notices of Tax Assessment Reduction Decision on Notices of Tax Assessment or Notices of Tax Assessment Reduction Decision on Notices of Tax Collection);
  8. Notices of Tax Assessment Cancelation Decision;
  9. Notices of Advance Tax Overpayment Refund Decision (could be in the form of Notices of Tax Assessment Cancelation Decision on Notices of Tax Assessment or Notices of Tax Assessment Cancelation Decision on Notices of Tax Collection);
  10. Notices of Interest Compensation Payment Decision;
  11. Notices of Tax Payable;
  12. Notices of Land and Building Tax Assessment;
  13. Notices of Land and Building Tax Collection;
  14. Notices of Land and Building Tax Reduction Decision; or
  15. Notices of Land and Building Tax Penalty Reduction Decision.

The correction to Tax Assessment can be applied for:

Typing Error

Errors in typing name, address, Taxpayer Identification Number (TIN), Notice of Tax Assessment number, type of tax, Tax Period or Tax Year, due date, or any other typing errors not affecting Tax Payable;

Miscalculation

Including:

  1. Errors resulting from addition and/or subtraction and/or multiplication and/or division of a sum; or
  2. Miscalculations attributed to the issuance of Notice of Tax Assessment, Notice of Tax Collection, tax-related notice of decision, decision on appeal, or decision on case review;

Mistake in applying certain provisions of the tax laws and regulations

Mistakes in applying tariffs, mistakes in applying percentages of Net Income Calculation Norms, mistakes in imposing administrative penalties, mistakes in Non-Taxable Income, mistakes in calculating Income Tax for the current year, and mistakes in crediting tax.

In case of mistakes in crediting Input Value-Added Tax (VAT), correction can only be made if:

  1. There is a difference in the amount of Input Tax that becomes the tax credit; and
  2. The Input Tax is not the subject of dispute between the tax authorities and the Taxpayer.

Application Requirements

  1. One (1) application is submitted for 1 (one) Notice of Tax Assessment or Notice of Decision only;
  2. The application must be submitted to the Tax Office (KPP) where the Taxpayer is registered and/or where the VAT Entrepreneur is registered;
  3. The application must be submitted in writing in Indonesian by stating the reasons for the application and using the letter of application format according to the example provided;
  4. The said letter of application is signed by the Taxpayer, and if it is signed by someone other than the Taxpayer, the letter of application must enclose a special power of attorney.

Decision on Correction

If the application submitted fails to meet the requirements, it will be returned with a written notice enclosed within a period of 6 (six) months following the receipt of the application. Although the application for correction is returned, you can still reapply.

During the application for correction examination process, you may be asked to produce the necessary data, information, and/or statements.

Within a maximum period of 6 (six) months following the receipt date of the letter of application, a Decision Letter on Correction must be issued. The letter contains the decision to:

  1. Grant the Taxpayer's application by correcting the errors or mistakes, which could be by adding, subtracting, or canceling Tax Payable; or
  2. Reject the Taxpayer's application.

If the 6 (six)-month period has elapsed but no Decision Letter on Correction has been issued or the application for correction has not been returned, the application will be considered granted and a Decision Letter on Correction will be issued according to the application.