These are 11 Reasons Why Taxpayers Are Subject to Interest Administration Sanctions

THERE ARE 3 types of administrative sanctions in the field of taxation, namely fines, interest, and increases. In the previous article, the administrative sanctions for fines have been described. Furthermore, this article will discuss further interest administration sanctions.

Provisions on interest sanctions are regulated in Law no. 6 of 1983 concerning General Provisions and Tax Procedures stated in Law no. 11 of 2020 concerning Job Creation ( KUP Law ). In the KUP Law, there are at least 11 reasons taxpayers can be subject to interest sanctions.

Firstthere is an underpaid tax due to the issuance of certain legal products. By Article 19 paragraph (1) of the KUP Law, administrative sanctions are imposed if the issuance of a tax underpayment assessment letter (SKPKB) or additional SKPKB as well as a correction decision letter, objection decision letter, appeal decision, or judicial review decision causes the amount of tax still to be paid. paid more.

The amount of tax that is not or underpaid is subject to administrative sanctions in the form of interest at the rate of interest per month determined by the minister of finance.

The determination of the amount of the administrative sanction of interest is calculated based on the reference interest rate divided by 12 in effect on the date of commencement of the calculation of the sanctions. The calculation of sanctions is carried out from the due date to the date of payment or the issuance date of the tax bill (STP).

Second, taxpayers are allowed to make installments or postpone tax payments by the provisions of Article 19 paragraph (2) of the KUP Law. In this context, installments or delays in tax payments are given to taxpayers who are experiencing liquidity difficulties or in a force majeure situation so that they cannot pay their taxes on time.

However, there are consequences if the taxpayer is allowed to make installments or delay tax payments, namely the imposition of interest administration sanctions. Taxpayers who have been approved to make installments or postpone tax payments are subject to interest administrative sanctions.

The interest sanction is calculated based on the reference interest rate divided by 12 which is in effect on the date of commencement of the calculation of the sanctions. The administrative sanction of interest is calculated from the amount of tax still to be paid.

Third, taxpayers who are declared underpaid for delaying the submission of the Annual Tax Return SPT ). The taxpayer is subject to an administrative penalty of interest. The administrative sanctions of interest are calculated based on the reference interest rate divided by 12 which applies on the date of commencement of the calculation of sanctions.

This is regulated in Article 19 paragraph (3) of the KUP Law. The administrative penalty of interest is calculated from the expiration of the deadline for submitting the Annual SPT until the date the underpayment is paid.

Fourth, underpayment of taxes due to voluntary correction of the Annual SPT. Taxpayers self-correct the Annual SPT which results in a larger tax debt as regulated in Article 8 paragraph (2) of the KUP Law, which will also be subject to interest.

The interest rate of administrative sanctions is calculated based on the reference interest rate plus 5% and divided by 12, which is effective on the date of commencement of the calculation of sanctions. Administrative sanctions are calculated from the time the SPT submission ends until the date of payment.

Fifth, underpayment of taxes due to voluntary correction of the Periodic SPT. Referring to Article 8 paragraph (2a) of the KUP Law, taxpayers who self-correct their period SPT and result in a larger tax debt will be subject to interest sanctions.

The sanction is also calculated based on the reference interest rate plus 5% and divided by 12 which is effective on the date the penalty calculation begins. The calculation of the administrative sanctions of interest is carried out from the due date of payment until the date of payment.

Sixth is the delay in payment/depositing of taxes based on the SPT Masa as stated in Article 9 paragraph (2a) of the KUP Law. The administrative sanction of interest for the violation is calculated by taking into account the reference interest rate plus 5% and divided by 12 which applies on the date the penalty calculation begins. The administrative sanctions of interest are calculated from the due date of payment until the date of payment.

Seventh, late payment or deposit of the annual SPT. By Article 9 paragraph (2b) of the KUP Law, the amount of the administrative sanction of interest is determined based on the reference interest plus 5% and divided by 12 which takes effect on the date of commencement of the calculation of the sanctions. The administrative sanction is calculated starting from the end of the deadline for submitting the Annual SPT until the date of payment.

Eighth, the issuance of STP due to unpaid/underpaid income tax and underpaid taxes due to typos and/or typos as regulated in Article 14 paragraph (3) of the KUP Law.

The issuance of STP due to unpaid/underpaid income tax is subject to an administrative penalty of interest calculated by considering the reference interest rate plus 5% and divided by 12 which applies on the date of commencement of the calculation of the sanctions.

The administrative sanctions are calculated from the time the tax becomes due or the end of the tax period, part of the tax year, or the tax year until the issuance of the STP.

Ninth, the disclosure of the untruth of the SPT after the examination but not yet issued a tax assessment letter (SKP) as stated in Article 8 paragraph (5) of the KUP Law. In this case, there is a tax that is underpaid by the taxpayer due to the disclosure of the incorrect filling of the SPT.

The disclosure of the untruth is subject to an administrative penalty of interest. The sanctions are calculated based on the reference interest rate plus 10% and divided by 12 which will take effect on the start date of calculating the sanctions.

The interest administrative sanctions are calculated from the end of the deadline for submitting the Annual SPT until the date of payment for the disclosure of incorrect filling of the Annual SPT. Meanwhile, for disclosure of the untruth of the Periodic SPT, the administrative sanction is calculated from the due date of payment ending until the date of payment.

Tenth, issuance of SKPKB due to unpaid or underpaid taxes and issuance of NPWP and/or inauguration of PKP by Article 13 paragraph (2) of the KUP Law.

The issuance of the SKPKB is subject to an administrative sanction of interest which is calculated based on the reference interest rate plus 15% and divided by 12 which applies on the date of commencement of the calculation of the sanctions. Administrative sanctions are calculated from the time the tax becomes payable or the end of the tax period, part of the tax year, or the tax year until the issuance of the SKPKB.

Eleventh, the issuance of SKPKB for taxable entrepreneurs (PKP) failed to produce. In this case, the PKP has not submitted but has received a return/has credited the input tax by the provisions of Article 13 paragraph (2a) of the KUP Law.

The issuance of the SKPKB is subject to an administrative penalty of interest. The sanctions are calculated based on the reference interest rate plus 15% and divided by 12 which will take effect on the start date of calculating the sanctions. The interest administrative sanction is calculated from the time the repayment due date ends until the date of the issuance of the SKPKB.

It should be understood, that the amount of administrative sanctions above is determined based on the degree of error committed by the taxpayer. In addition, the administrative sanctions for interest in the eleven points above are only imposed for a maximum of 24 months.

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