Tax Examination
Referring to the provisions of Article 1 section 25 of the KUP Law (General Provisions and Tax Procedures Law), Tax Examination is defined as a series of activities to gather and process data, information, and/or evidence, carried out objectively and professionally based on an examination standard to test compliance with tax obligations and/or for other purposes in the context of implementing tax regulations.
Based on the provisions of Article 29 paragraph (1) of the KUP Law, the Director General of Taxes has the authority to conduct an examination to test the compliance of the Taxpayer in fulfilling tax obligations and for other purposes in the context of implementing tax laws and regulations.
According to the provisions in Article 29 paragraph (1) of the KUP Law, the Director General of Taxes has the authority to conduct an examination to test the compliance of the Taxpayer in fulfilling tax obligations and for other purposes in the context of implementing tax laws and regulations.
The examination process is divided into three types based on the provisions of Article 1 sections 7, 8, and 9 of MOF Regulation 15/2025 (PMK 15/2025), namely: Comprehensive Examination, Focused Examination, and Specific Examination.
Comprehensive Examination (Pemeriksaan Lengkap): An examination to test compliance with tax obligations that covers all items in the Tax Return (SPT) and/or Tax Object Notification (SPOP) in depth.
Focused Examination (Pemeriksaan Terfokus): An examination to test compliance with tax obligations that focuses on one or several items in the Tax Return and/or Tax Object Notification in depth.
Specific Examination (Pemeriksaan Spesifik): An examination to test compliance with tax obligations that is conducted specifically on one or several items in the Tax Return and/or Tax Object Notification, data, or specific tax obligations in a straightforward manner.
Based on Article 6 of MOF Regulation 15/2025, the duration of a tax examination to test compliance is divided into two stages: the testing period and the period for the final discussion of examination results and reporting.
1. Testing Period The testing period begins when the Notice of Examination (Surat Pemberitahuan Pemeriksaan) is submitted to the Taxpayer or their representative until the Notice of Examination Results (SPHP - Surat Pemberitahuan Hasil Pemeriksaan) is delivered. The maximum duration varies depending on the type of examination:
Comprehensive Examination: Maximum 5 months.
Focused Examination: Maximum 3 months.
Specific Examination: Maximum 1 month.
In addition, specifically for examinations involving a group of Taxpayers and/or those with indications of transfer pricing transactions, the testing period can be extended by up to 4 months. The examining official must notify the Taxpayer of this extension.
2. Discussion and Reporting Period This period is a maximum of 30 working days, calculated from the delivery of the SPHP until the Examination Report (LHP - Laporan Hasil Pemeriksaan) is issued.
Exceptions and Other Matters
Examination for Testing Compliance with Shorter Duration: This is conducted with a shorter testing period and final discussion/reporting period, each being a maximum of 10 working days.
Examination for Other Purposes: The total duration for this examination is a maximum of 4 months, calculated from the Notice of Examination until the Examination Report.
The examination duration must also consider regulations related to the completion of Taxpayer requests, such as tax overpayment refunds, NPWP deletion, or revocation of VAT-Registered Entrepreneur (PKP) status.
This duration does not apply to the examination of Oil and Gas Income Tax using cooperation contracts with operating cost recovery (Production Sharing Contract Cost Recovery), the provisions for which follow special regulations.
Based on Article 7 of MOF Regulation 15/2025, the Tax Examiner must fulfill a number of provisions in carrying out their duties. These obligations are divided into general obligations that apply to all examinations and additional obligations specific to compliance examinations.
General Obligations of the Tax Examiner During the examination, the Tax Examiner must:
Show their identity card and Examination Order (Surat Perintah Pemeriksaan) to the Taxpayer.
Deliver the Notice of Examination.
Show the letter containing team changes if the composition of the examination team changes.
Return the borrowed books, records, and documents.
Maintain the confidentiality of all Taxpayer information obtained during the examination.
Additional Obligations for Compliance Examination Specifically for examinations that test compliance, the Tax Examiner must also:
Provide an explanation to the Taxpayer regarding the reasons, objectives, as well as their rights and obligations.
Give the Taxpayer an opportunity to disclose the incorrectness of the information provided in the Tax Return.
Deliver a written notification about the positions or data being examined, if the examination is conducted as a Focused Examination, and deliver a notification if there are changes to these positions.
Conduct a Provisional Findings Discussion (Pembahasan Temuan Sementara) and grant the Taxpayer the right to attend the Final Discussion of Examination Results (Pembahasan Akhir Hasil Pemeriksaan).
Deliver a list of examination findings attached to the Notice of Examination Results (SPHP).
Deliver a written notification of suspension or continuation if the examination is continued with a Preliminary Evidence Examination (Pemeriksaan Bukti Permulaan) or criminal investigation.
Note: These additional obligations do not apply if the examination is conducted as a Specific Examination.
Referring to the provisions of Article 7 paragraph (4) of MOF Regulation 15/2015, the Tax Examiner has the authority to ensure the smooth running of the examination, which includes:
Document Access: The examiner has the right to view or borrow books, records, and other relevant documents related to the Taxpayer's income, business activities, or tax object.
Electronic Data Access: The examiner has the authority to access and download electronic data necessary for the purpose of the examination.
Physical Access: The examiner can enter and examine places or rooms, as well as movable and immovable goods used to store documents, money, or other items related to the examination object.
Request for Information: The examiner has the right to request data, information, or explanations, both verbally and in writing, from the Taxpayer. They can also summon the Taxpayer to attend the DGT office.
Request for Information from Third Parties: The examiner can request information and evidence from third parties who have a relationship with the Taxpayer being examined.
Sealing: The examiner has the authority to seal places, rooms, as well as movable and/or immovable goods.
Request for Assistance: The examiner has the right to request assistance from the Taxpayer for the smooth running of the examination, such as:
Providing special personnel or equipment if access to electronic data requires it.
Granting access rights to movable or immovable goods.
Providing a special room for the examination at the Taxpayer's location.
Providing accompanying personnel if needed.
Based on Article 8 paragraphs (1), (2), and (3) of MOF Regulation 15/2025, taxpayers have several rights during a tax examination. These rights are divided into general rights that apply to all types of examinations and additional rights specific to compliance examinations.
General Rights of the Taxpayer During a tax examination, the Taxpayer has the right to request the Tax Examiner to show:
Their identity card and the Examination Order.
The Notice of Examination.
The team change letter if there is a change in team members.
An explanation of the reasons and purpose of the examination.
Additional Rights for Compliance Examination In addition to the above rights, taxpayers being examined to test compliance also have the right to:
Disclose the incorrectness of the data or information in the Tax Return (SPT).
Receive written notification regarding the items in the Tax Return, data, and/or specific tax obligations being examined, if the examination is conducted as a Focused Examination.
Receive written notification if there are changes to the items in the Tax Return, data, and/or specific tax obligations if the examination is conducted as a Focused Examination.
Attend the Provisional Findings Discussion and the Final Discussion of Examination Results.
Show, submit, and/or provide books, records, data, information, or other explanations (including Electronic Data) in the context of the Provisional Findings Discussion.
Present witnesses, experts, or third parties in the context of the Provisional Findings Discussion.
Receive the List of Examination Findings.
File a request for discussion with the Examination Quality Assurance (QA) Team if there is a difference of opinion regarding the legal basis for corrections that are not agreed upon, except for the type of Examination for Testing Compliance with Tax Obligations.
Receive a written notification of suspension or continuation if the examination is continued with a Preliminary Evidence Examination.
Receive a notification that the suspended examination is being resumed.
Important Note: The Taxpayer's rights to attend, submit data, and present witnesses in the Provisional Findings Discussion do not apply if the examination is conducted as a Specific Examination.
Based on Article 8 paragraphs (4) and (5) of MOF Regulation 15/2025, taxpayers have several obligations that must be fulfilled during a tax examination. These obligations are crucial to ensure the smooth running of the examination process.
Main Obligations of the Taxpayer During the Examination process, the Taxpayer must fulfill the Main Obligations, which include:
Show and/or lend documents: The documents referred to include books, records, and other documents related to accounting, business activities, or the tax object relevant to the purpose of the Examination.
Grant access to electronic data: In the Tax Examination process, the Taxpayer must allow the Tax Examiner to access and download the required electronic data.
Grant access to the examination premises: For the smooth running of the Examination, the Taxpayer must allow the Tax Examiner to enter and examine the places or rooms, as well as movable and immovable goods related to business activities or the tax object, including places for storing books, records, electronic data, documents, and money, to obtain clues related to all matters concerning the purpose of the Examination.
Provide assistance: This assistance can be in the form of providing personnel or equipment to access electronic data, granting access rights to movable/immovable goods, providing a special room for the examination, and providing accompanying personnel if needed.
Provide data, information, and/or explanations: The Taxpayer must provide data, information, and/or explanations, both verbally and in writing, requested by the Tax Examiner, including complying with summons to attend the DGT office.
Additional Obligation for Compliance Examination In addition to the above obligations, for examinations that test compliance with tax obligations, the Taxpayer also has the additional obligation to submit a response to the Notice of Examination Results (SPHP).
After the examination process is completed, the DGT will notify the Taxpayer of the examination results. This notification is carried out based on the provisions in Article 18 of MOF Regulation 15/2025, which includes:
Notification of Examination Results
Notification of Results: The DGT must notify the Taxpayer of the examination results through the Notice of Examination Results (SPHP). This notice is accompanied by a list of findings discovered during the examination.
Taxpayer's Response: The Taxpayer must provide a written response to the SPHP within a maximum of 5 working days from the date the notice is received.
Final Discussion Stage
Discussion Invitation: After the DGT receives the Taxpayer's response or if the 5 working days have passed without a response, the DGT will invite the Taxpayer to attend the Final Discussion of Examination Results (PAHP). This invitation is delivered a maximum of 3 working days from the date of the earlier event (response received or deadline expired).
Right to Attend: The Taxpayer has the right to attend the PAHP.
No Response: If the Taxpayer does not provide a response, the Tax Examiner will prepare an official report (berita acara) stating that no response was submitted.
Non-Attendance: If the Taxpayer does not attend the PAHP, the Tax Examiner will still continue the process by preparing a discussion summary (risalah) and an official report that also records the Taxpayer's non-attendance. These documents will be signed only by the Tax Examiner.
Documentation of Discussion Results
Discussion Summary: The results of the PAHP will be documented in a Discussion Summary (Risalah Pembahasan) signed by the Tax Examiner and the Taxpayer (or their representative).
Official Report: Following the Discussion Summary, an Official Report of the Final Discussion of Examination Results (Berita Acara PAHP) will be prepared, accompanied by a summary of the discussion results. This official report is signed by both parties.
Refusal to Sign: If the Taxpayer refuses to sign the summary or the official report, the Tax Examiner will record this in the Berita Acara PAHP.
Subsequent Process Based on the provisions of Article 19 of MOF Regulation 15/2025, there is a subsequent process that can be taken by the Taxpayer, namely a discussion with the Quality Assurance (QA) Team. If the Taxpayer wishes to file a request for discussion with the Examination QA Team, the Berita Acara PAHP will be prepared after the discussion with the QA Team is completed. However, if the Taxpayer does not file such a request, the official report is prepared immediately after the PAHP.
Requirements for Filing a Discussion with the QA Team The Taxpayer may file a discussion with the Examination QA Team if the following conditions are met:
The Taxpayer partially or completely disagrees with the examination results listed in the Notice of Examination Results (SPHP).
The Taxpayer attended the Final Discussion of Examination Results (PAHP) with the examination team.
The Taxpayer stated their intention to file a discussion with the QA Team, and this is recorded in the discussion summary.
The discussion summary has been signed by the Taxpayer and the examination team.
The Berita Acara PAHP has not been signed.
There is a difference of opinion between the Taxpayer and the Tax Examiner that is limited to the legal basis for the correction.
Submission and Discussion Process
Submission of Request: The request is submitted to the Head of the DGT Regional Office (for examinations at the KPP or Regional Office level) or the Director of Examination and Collection (for examinations at the central level).
Deadline: The request must be submitted a maximum of 3 working days after the signing of the discussion summary. If the Taxpayer does not submit the request within this deadline, the examination team will summon the Taxpayer to sign the Berita Acara PAHP.
Composition of the QA Team: The QA Team consists of one chairman, one secretary, and three members, formed by the Director of Examination and Collection or the Head of the DGT Regional Office.
Duties of the QA Team: The QA Team is tasked with discussing the differences of opinion (limited to the legal basis), providing a binding conclusion, and preparing a summary of the discussion results.
Discussion Process: The QA Team will invite the Taxpayer and the examination team for a discussion. If the Taxpayer does not attend, the discussion will still be conducted by the QA Team and the examination team.
Discussion Results and Signing
Result Summary: The results of the discussion with the QA Team will be documented in the Official Summary of the Examination QA Team (Risalah Tim QA Pemeriksaan).
Signing: If the Taxpayer is present, the summary will be signed by all parties (QA Team, examination team, and Taxpayer). If the Taxpayer refuses to sign, a note will be made in the summary.
Non-Attendance: If the Taxpayer does not attend, the QA Team will prepare an official report of non-attendance and a discussion summary signed by the QA Team and the examination team.
Issuance of Berita Acara PAHP: The results of the initial discussion summary and the QA Team summary will be used as the basis for preparing the Berita Acara PAHP. The Taxpayer will be summoned to sign this official report.
Refusal to Sign: If the Taxpayer refuses or fails to attend to sign the Berita Acara PAHP, this will be recorded in the official report.
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