Taxpayer's Claim Rejected! Why the 2% Interest Rate No Longer Applies Under the Omnibus Law Transition.

Tax Lawsuit Analysis: PT PCI, the Principle of Tempus Actus, and the Shift to Benchmark Interest Compensation Post-Omnibus Law

The interest compensation dispute in the PT PCI case serves as a crucial precedent regarding the starting point for applying benchmark interest rates post-Omnibus Law. The core conflict centered on the difference in interpretation between tempus delicti (the tax period of the dispute) and tempus actus (the moment the tax assessment annulment decision was issued). The Plaintiff insisted on using the fixed rate of 2% per month according to the old KUP Law because the dispute originated from the 2015 tax period. Conversely, the Defendant applied the benchmark interest rate (0.57%), arguing that the right to interest compensation only arose when the STP Annulment Decision was issued in March 2021, after the Omnibus Law came into effect.

Judicial Bench Determination: Absolute Enforcement of Article 27B of the KUP Law jo. PMK No. 18/PMK.03/2021

The Board of Judges, in their legal consideration, emphasized the legal principle that the provisions used to calculate interest compensation are those in force at the time the legal event granting the compensation occurs. Since the STP Annulment Decision, which formed the basis for the compensation, was issued after November 2, 2020, Article 27B of the KUP Law in conjunction with PMK No. 18/PMK.03/2021 applies absolutely. This means the interest rate used is no longer a static 2%, but a benchmark rate set by the Minister of Finance, which in this case was significantly lower.

Financial Impact: Retroactive Reach of Transitional Policies Over Historical Tax Periods

Analysis of this decision shows that the protection of Taxpayers' interest compensation rights now heavily depends on financial market dynamics determining the benchmark rate. The implication for PT PCI is a total rejection of their claim for a shortfall in interest compensation amounting to IDR 46,332,000.00. This ruling serves as a reminder for businesses that the transitional policies in the Omnibus Law have a retroactive reach over disputes from old tax periods, provided the administrative decision is issued after the new regulations took effect.

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