Ministry of Finance Finalizes Taxpayer Compliance Supervision Regulations

The Directorate-General of Tax (“DJP”) of the Ministry of Finance (Kemenkeu) is harmonizing the Draft Regulation of the Minister of Finance (“Draft Regulation”) on Supervision of Taxpayer Compliance. This regulation will regulate the procedures and mechanisms for supervising taxpayer compliance in the self-assessment system.

“The substance of the Draft Regulation focuses on the scope of supervision, the authority of the tax authorities, the rights and obligations of Taxpayers, and the procedures for issuing letters of request for explanation, appeals, and warnings in the supervision process,” said Rosmauli, Director of Outreach, Services, and Public Relations at the Directorate-General of Tax (DJP) of the Ministry of Finance to Hukumonline.

This policy will also complement other provisions in the taxation sector, such as the Regulation on Tax Consultants and the Draft Regulation on Legal Representatives in Tax Courts. This regulation is expected to create a level playing field in the provision of taxation services, particularly on the competency standards of taxpayer representatives, the mechanism for granting power of attorney, the limits of authority, and the governance of supervision and sanctions.

“The harmonization process is currently underway,” he added.