Fully Granted: PT S Wins Appeal, Tax Court Annuls Article 26 WHT Object Correction

Tax Court Decision Regarding Article 26 Withholding Tax Dispute of PT S

The Tax Court has again issued an important decision regarding Article 26 Withholding Tax (WHT) disputes. Through Decision Number PUT-012224.13/2023/PP/M.XVIA Year 2025, the Panel of Judges fully granted the appeal filed by PT S concerning the June 2020 tax period. This decision annuls the correction previously stipulated in the Underpayment Tax Assessment Letter (SKPKB) Number 00071/204/20/056/22.

Background and Core Dispute Matter

This case originated from the issuance of an SKPKB by the Directorate General of Taxes (DGT), which was subsequently upheld by the Objection Decision Letter Number KEP-02733/KEB/PJ/WPJ.07/2023. The main point of dispute in this matter was a correction to the object of Article 26 WHT made by the Respondent (DGT). Unfortunately, specific details regarding the Respondent's arguments for the correction, as well as the Appellant's (PT S) counter-arguments, could not be extracted from the available decision data.

Operative Decision of the Panel of Judges

Similarly, the Panel of Judges' legal considerations and in-depth analysis that formed the basis of the decision could not be detailed. However, the operative part of the Judges' decision is very clear: "To grant the Appellant's appeal in its entirety." The consequence of this decision is that the calculation of tax still payable for the June 2020 Tax Period is determined to be Rp 0.00 or Nil.

Analytical Implications of the Fully Granted Decision

Analytically, a "Fully Granted" decision in an Article 26 WHT object correction dispute has significant implications. It indicates that the Appellant was able to prove that the transaction or payment that was the basis for the DGT's correction, based on trial facts and statutory provisions (both the Income Tax Law and the applicable Tax Treaty), did not constitute an object of Article 26 WHT.

Conclusion and Significance of Documentation Evidence

Although the detailed juridical considerations are not accessible, the Taxpayer's complete victory in this case underscores the importance of strong evidence and documentation in the tax litigation process. This decision, pronounced on July 29, 2025, sets a precedent for similar disputes, particularly concerning the interpretation of income objects subject to Article 26 WHT.

A Comprehensive Analysis and the Tax Court Decision on This Dispute Are Available Here.