TAX AUDITS

The government, through a Regulation of the Minister of Finance, has issued a Regulation Number 15 of 2025 (PMK 15/2025), dated February 10, 2025. PMK 15/2025 replaces PMK 17/2013 s.t.d.t.d PMK 184/2015, PMK Number 256/2014 and Article 105 PMK 18/2021, and is an adjustment to the provisions regulated in Government Regulation Number 50 of 2022. PMK 15/2025 has been in effect since February 14, 2025. Therefore, the Examination Notification Letter (SP2) issued at February 14, 2025 onwards will follow the provisions of PMK 15/2025. On the other hand, SP2 issued prior to February 14, 2025, still follows the examination procedures regulated in the previous MoF Regulation.

The main points of changes that directly relate to the taxpayer being audited include :

A. Classification of Tax Audit Types

Under PMK 15/2025, the type of audits are divided into a) Complete Examination, b) Focused Examination and c) Specific Examination.

B. Changes in the Period of Examination

• A Complete Examination must be completed within a maximum period of 5 months, a Focused Audit within a maximum period of 3 months, and a Specific Audit within a maximum period of 1 month from the date of the Examination Notification Letter (SP2) is issued and submitted to the Taxpayer until the SPHP is issued.

• For group taxpayers or audits related to transfer pricing, the audit period can be extended for a maximum of 4 months.

C. Response to the Notification of Tax Audit Findings (SPHP)

The period for submitting a response to the SPHP is a maximum of 5 working days from the date the SPHP is received. There is no extension of the period for submitting a response (previously, under the old regulation, a response to the SPHP was 7 working days and could be extended for additional 3 working days.

D. Final Discussion of Examination

The final discussion period is a maximum of 30 working days from the date the SPHP is issued and submitted to the Taxpayer. This is different from the previous which is maximum of 2 months.

E. Submission of books, records and/or documents in accordance with the request letter

In PMK 15/2025, taxpayers are required to fulfill the request for books, records and/or documents within a maximum of 1 month from the date the request is submitted. In the event that the books, records, and/or documents requested in the request are submitted by the taxpayer after the deadline, they are considered not to have been provided at the time of the audit. For this reason, taxpayers are required to meet the deadline. Exceptions: if the document has not been obtained by the Taxpayer from a third party, then the document can be submitted until before the minutes of the Final Discussion of the Examination Results are signed.

F. Discussion of Temporary Findings Prior to SPHP

The examiner is required to discuss the temporary findings by submitting a list of temporary findings along with an invitation no later than 1 month before the SPHP is issued and submitted. Taxpayers may submit supporting documents during the discussion of the temporary findings, including the presence of expert witnesses or third parties.

G. Obligation of Proof by the Auditor for Ex officio Determination

The auditor may calculate the taxable income based on deeming (ex officio) in the event that the taxpayer does not sufficiently submit books, records, and/or documents, including electronic data, as well as other requested information.

H. Submission of documents electronically or in writing

Documents may be submitted electronically, directly, or by post/courier.

PDF: PMK 15/2025