Installment and Delay Payment of Land & Building Taxes (LBT) (PER 38/PJ/2011)

As you well know, the Land & Building Taxes Debt must be repaid at maturity. Debts listed in SPPT must be repaid no later than 6 months later, while those listed in the SKP / STP shall be paid no later than one month from the date of receipt of the letter. But the DGT (at the request of Taxpayer) can provide an installment or delay in payment of debts (except for STP because of installment/delay payment. Installment/postponement period may be granted for a period not more than 12 (twelve) months from the issuance of the decision letter. Application letter must meet the following requirements: • written request to the DGT with one request letter to one SPPT/SKP/STP, SKP • submitted in Indonesian language writing to the DGT through the head of DGT regional office, accompanied by reasons, evidence supporting the request, the amount of Debts • signed by the taxpayer, and in this case was not signed by the taxpayer must be accompanied by an attorney letter; • filed/submitted no later than 9 (nine) working days before payment is due, unless the taxpayer or their attorney can show that the filing deadline can not be fulfilled due to circumstances beyond his/her control; • do not have delinquent LBT debt in the previous years; • enclosing copies of SPPT/SKP/STP Taxpayers who filed the petition must provide a guarantee (the amount will be determined based on consideration of the Head of DGT regional office, unless the Head the Head of DGT regional office considers unnecessary) in the form of bank guarantee, letter / document proof of ownership of moving goods, underwriting debt by a third party, land certificates, and / or certificates of deposit. If the request can not be considered, then the Head of DGT regional office at the latest within 5 (five) working days from the date of receipt of the request shall notify in writing with the reasons underlying the taxpayer or their attorney. Head of DGT regional office have to give a decision within a period of at least 7 (seven) working days from the date of receipt of the request. If not, then the application is considered acceptable. Postponed/installments debt balance are subject to administrative penalty of 2% of the outstanding debt balance each month. This Regulation shall enter into force January 1, 2012.