Gov. Reg. 50/2022: New Limitation for the Rectification of Tax Returns

JAKARTA, DDTCNews – Through Government Regulation (Gov. Reg.) Number 50/2022, the government re-stipulates the thresholds of the rectification of Tax Returns.

Referring to Gov. Reg. 50/2022, taxpayers may rectify filed tax returns by submitting a written statement provided that the director general of taxes has not conducted an audit or a preliminary investigation.

“An audit commences since the notice of audit is given to taxpayers, their representatives, attorney, employees or adult family members of the taxpayers,” reads Article 5 paragraph (3) of Gov. Reg. 50/2022, quoted on Thursday (29/12/2022).

On the other hand, the preliminary investigation is a public preliminary investigation, that commences after the preliminary investigation notification letter is given to the taxpayers, their representative, attorney, employees or adult family members of the taxpayers.

On another note, the requirements for the rectification of tax returns under Gov. Reg. 50/2022 are fewer than the previous regulation, namely Gov. Reg. 74/2011. Under Gov. Reg. 74/2011, there are requirements related to verification to issue a notice of tax assessment.

In other words, when Gov. Reg. 74/2011 was in force, taxpayers could not rectify tax returns if the director general of taxes has conducted a verification to issue a notice of tax assessment.

Further, the written statement in the rectification of tax returns is prepared by marking the spaces provided in the tax returns stating that the taxpayer concerned has rectified the tax returns.

If the rectification of a tax return states a loss or overpayment, the rectification of the tax return must be filed no later than 2 years before the expiration of the assessment. Further provisions on procedures for the rectification of tax returns are stipulated in a minister of finance regulation.

In addition, pursuant to Gov. Reg. 50/2022, taxpayers can also now rectify filed Annual Tax Returns if the taxpayers receive a mutual agreement decision letter. (rig)