Indonesian

Type:

REGULATION (PER)

By:

THE DIRECTOR GENERAL OF TAXATION (DIRGENTAX)

Number:

PER-48/PJ/2010

Date:

NOVEMBER 3, 2010 (JAKARTA)

Title:

GUIDELINES FOR IMPLEMENTATION OF MUTUAL AGREEMENT

PROCEDURE BASED ON DOUBLE TAXATION AVOIDANCE
AGREEMENT
THE DIRECTOR GENERAL OF TAXATION,

Considering:
a.

whereas based on Article 32A of Law Number 7 Year 1983 regarding Income
Tax as several times amended most recently by Law Number 36 Year 2008 it is
stipulated that Government shall be authorized to establish agreement with the
Government of other country in the context of double taxation avoidance and
prevention from tax evasion;

b.

whereas in Double Taxation Avoidance Agreement between the Government of

Indonesia and the Government of partner country, Mutual Agreement Procedure
(MAP) shall be stipulated;

c.

whereas to implement the provisions in Double Taxation Avoidance Agreement

in respect of the said Mutual Agreement Procedure, it is necessary to stipulate a
standard procedure as technical directives for its implementation;

d.

whereas based on the considerations as intended in points a, b, and c, it is

necessary to stipulate a Regulation of the Director General of Taxation regarding
Guidelines for Implementation of Mutual Agreement Procedure Based on Double
Taxation Avoidance Agreement;

In View of:
1.

Law Number 6 Year 1983 regarding General Taxation Provisions and

Procedures (State Gazette of the Republic of Indonesia Year 1983 Number 49,
Supplement to the State Gazette of the Republic of Indonesia Number 3262) as
amended several times most recently by Law Number 16 Year 2009 (State
Gazette of the Republic of Indonesia Year 2009 Number 62, Supplement to the
State Gazette of the Republic of Indonesia Number 4999);

2.

Law Number 7 Year 1983 regarding Income Tax (State Gazette of the Republic
of Indonesia Year 1983 Number 50, Supplement to State Gazette of the
Republic of Indonesia Number 3263) as amended several times most recently by
Law Number 36 Year 2008 (State Gazette of the Republic of Indonesia Year
2008 Number 133, Supplement to State Gazette of the Republic of Indonesia
Number 4893);

HAS DECIDED:
To Stipulate:

REGULATION OF THE DIRECTOR GENERAL OF TAXATION

REGARDING GUIDELINES FOR IMPLEMENTATION OF
MUTUAL AGREEMENT PROCEDURE BASED ON DOUBLE
TAXATION AVOIDANCE AGREEMENT.

CHAPTER I
GENERAL PROVISIONS
Article 1
Referred to herein as:
1.
Double Taxation Avoidance Agreement, hereinafter referred to as P3B, shall be
an agreement between the Government of Indonesia and Government of partner
country or of partner jurisdiction to prevent from double taxation and tax evasion.
2.

Mutual Agreement Procedure, hereinafter referred to as MAP, shall be

administrative procedure that is stipulated in P3B to settle issues arising out of
the enforcement of P3B.

3.

Authorized Official shall be the officials as intended in P3B.

4.

Partner Country of P3B shall be country or jurisdiction entering into P3B with
Indonesia that has come into effect effectively.

5.

Mutual Agreement shall be the result already agreed upon by Authorized

Officials of Indonesia and Partner Country of P3B in respect of MAP already
implemented.

6.

Indonesian Resident Taxpayer shall be resident Tax Subject based on the

provisions of Law Number 7 Year 1983 regarding Income Tax as several times
amended most recently by Law Number 36 Year 2008, that receives or earns
income that is imposed with tax based on the law.

7.

Resident Taxpayer of Partner Country of P3B shall be resident Tax Subject of

Partner Country of P3B based on the provisions of laws on taxation in force in
the country concerned, which receives or earns income imposed with Income
Tax in such country.

8.

Foreign Taxpayer shall be foreign Tax Subject based on the provisions of Law
Number 7 Year 1983 regarding Income Tax as several times amended most
recently by Law Number 36 Year 2008, that receives or earns incomes imposed
with tax based on the law.

9.

Indonesian National shall be Indonesian National based on the provisions of

laws in the field of nationality.

10.

Law regarding General Taxation Provisions and Procedures, hereinafter referred

to as Law on KUP, shall be Law Number 6 Year 1983 regarding General
Taxation Provisions and Procedure as several times amended most recently by
Law Number 16 Year 2009.

11.

Transfer Pricing shall be the determination of price conducted in transaction

between parties possessing a special relation.

12.

Corresponding Adjustments shall be correction or adjustment of amount of tax

payable to Taxpayer of a country possessing a special relation with Taxpayer of
partner country, that is conducted by tax authority of the country concerned in
respect of correction of Transfer Pricing that is conducted by tax authority of
partner country (primary adjustments), so that allocation of profits in the two
countries or jurisdictions is consistent, with a view to eliminating double taxation.

13.

Dual Residence shall be condition that is faced by one tax subject that performs
transaction inter country or inter jurisdiction that at the same time is deemed to
become resident tax subject in each country or jurisdiction based on the
provisions of laws on taxation applicable in each country or jurisdiction.
Article 2

MAP shall be implemented in the event that there is:

a.
request filed by Indonesian Resident Taxpayer;
b.

request filed by Indonesian National becoming Resident Taxpayer of Partner

Country of P3B in respect of the provisions on non-discrimination in the
applicable P3B;

c.

request filed by Partner Country of P3B; or

d.

matters deemed necessary by and upon the initiative of the Director General of
Taxation.

CHAPTER II
PROCEDURE FOR FILING AND IMPLEMENTATION OF MAP FROM INDONESIAN
RESIDENT TAXPAYER OR INDONESIAN NATIONAL BECOMING RESIDENT
TAXPAYER OF PARTNER COUNTRY OF P3B
Article 3
(1)

Request for implementing MAP as intended in Article 2 sub-article a shall be

conducted, among other things, in the event that:
a.

Indonesian Resident Taxpayer is imposed with tax or will be imposed

with tax because of performing Transfer Pricing practice in connection
with transaction with Resident Taxpayer of Partner Country of P3B
possessing a special relation;

b.

Indonesian Resident Taxpayer deems that action of Partner Country of

P3B results in or will result in tax imposition not in accordance with the
provisions of P3B in respect of the existence or income of permanent
establishment owned by Indonesian Resident Taxpayer in Partner
Country of P3B;

c.

Indonesian Resident Taxpayer deems that action of Partner Country of

P3B results in or will result in tax imposition not in accordance with the
provisions of P3B in respect of tax withholding in Partner Country of P3B;
or

d.

Indonesian Resident Taxpayer that also constitutes Resident Taxpayer of

Partner Country of P3B asks for implementation of consultancy in the

context of MAP to determine his status as Resident Taxpayer of one of

the countries.
(2)

(3)

Request for implementing MAP as intended in Article 2 sub-article b shall be

conducted in the event that Indonesian National already becoming Resident
Taxpayer of Partner Country of P3B is imposed or will be imposed with tax in
Partner Country of P3B that is larger than that imposed by Partner Country of
P3B to its national (non-discrimination case based on the provisions of the
applicable P3B).
Request for implementing MAP as intended in paragraphs (1) and (2) shall be
conducted with due observance of the provisions in the applicable P3B.
Article 4

(1)

Request for implementing MAP as intended in Article 2 sub-article a shall be

delivered in written application to the Director General of Taxation c.q. the Head
of Tax Service Office where the Taxpayer is registered by giving information at
least on:
a.

name, Taxpayer Registration Number, address, and type of business of

Indonesian Resident Taxpayer who files request;

b.

name, Identity Number of Taxpayer, address, and type of business of

Taxpayer in Partner Country of P3B possessing a special relation with
Taxpayer who files request, special in respect of transaction of Transfer
Pricing;

c.

actions already taken by Resident Taxpayer of Partner Country of P3B or

tax authority of Partner Country of P3B, deemed not in accordance with
the provisions of P3B by Indonesian Resident Taxpayer;

d.

explanation whether Indonesian Resident Taxpayer has filed or will file

application for correction, objection, application for appeal to tax court, or
application for reduction or cancellation of tax assessment letter, as
intended in Article 16 paragraph (1), Article 25 paragraph (1), Article 27
paragraph (1), or Article 36 paragraph (1) sub-paragraph b of Law on
KUP, on matters the MAP of which is requested;

e.

Fiscal Year in respect of request conducted by Indonesian Resident

Taxpayer;

f.

explanations on transaction already corrected by tax authority of Partner

Country of P3B, that cover substance of transaction, value of correction,
and basis for correction;

g.

opinion of Indonesian Resident Taxpayer in respect of correction already

conducted by authority of Partner Country of Indonesian P3B;

h.

parties who can be contacted by the Directorate General of Taxation in

the context of following up request for implementing MAP already
delivered by Indonesian Resident Taxpayer;

i.

name of tax office of Partner Country of P3B, if possible, name of the

competent vertical unit of tax office of Partner Country of P3B if known by
Indonesian Resident Taxpayer who files MAP request; and

j.

the provisions in P3B that according to Indonesian Resident Taxpayer

are not enforced correctly and opinion of Indonesian Resident Taxpayer
on the enforcement of the provisions of P3B, if MAP request relates to
the enforcement of the provisions of P3B that is not appropriate.

(2)

Request as intended in paragraph (1) must be signed by Indonesian Resident

Taxpayer or by his authorized proxy based on the provisions of Law on KUP,
and in the event of being signed by proxy, it must be enclosed by special power
of attorney.

(3)

Request as intended in paragraph (1) must be enclosed by support documents

and shall be delivered within the period stipulated in the applicable P3B, that is
calculated after Indonesian Resident Taxpayer is imposed or will be imposed
with tax not in accordance with the provisions in P3B.

(4)

The Head of Tax Service Office must examine the completeness of request as
intended in paragraph (1) and must complete it with the related tax documents
available in administration of Tax Service Office, to be then forwarded to the
Director of Taxation Regulations II by no later than 30 (thirty) calendar days as
from request for implementing MAP is received completely.

(5)

In the event that request for MAP is delivered incompletely, the Head of Tax
Service Office shall give Taxpayer a notification within a maximum period of 15
(fifteen) calendar days as from request for implementing MAP is received, that
declares that the request for implementing MAP is incomplete and shall ask for
Taxpayer to complete the incomplete items.

(6)

The Director of Taxation Regulations II shall examine and consider request for
implementing MAP as intended in paragraph (1).

(7)

In the event that the request as intended in paragraph (1) can be processed
further to be consulted with the Authorized Official in Partner Country of P3B, the
Director of Taxation Regulations II shall deliver MAP request in writing to
Authorized Official in Partner Country of P3B.

(8)

The Director of Taxation Regulations II on behalf of the Director General of

Taxation shall reject request for implementing MAP as intended in paragraph (1),
in the event that:
a.

request as intended in paragraph (1) is delivered after exceeding the time

limit for delivery as intended in paragraph (3);

b.

Indonesian Resident Taxpayer files application for objection to the

Director General of Taxation on issues the MAP of which is requested
and does not revoke the said application for objection; or

c.

Indonesian Resident Taxpayer files application for appeal to tax court on

issues the MAP of which is requested and does not revoke the said
Appeal application;

within a maximum period of 15 (fifteen) calendar days as from request for

implementing MAP is received from the Head of Tax Service Office or as from it
is known that the Taxpayer concerned files objection request to the Director
General of Taxation or appeal request to tax court.

(9)

The Director of Taxation Regulations II can ask for further explanation to

Indonesian Resident Taxpayer, including ask for support documents and
necessary information, as well as can ask for information or help from other
directorate, technical implementation unit and/or vertical unit within the
Directorate General of Taxation.
Article 5

(1)

Request for implementing MAP as intended in Article 2 sub-article b shall be

delivered in written application to the Director General of Taxation c.q. the
Director of Taxation Regulations II by giving information at least on:
a.

name, address, and business activity of Indonesian National who files

request;

b.

action or tax imposition already conducted by tax authority of Partner

Country of P3B that is deemed heavier than action or tax imposition
conducted by the said tax authority of Partner Country of P3B to its
nationals;

c.

Fiscal Year in respect of request conducted;

d.

parties who can be contacted by the Directorate General of Taxation in

the context of following up application already delivered by the concerned
party; and

e.

name of tax office of Partner Country of P3B, if possible, name of the

competent vertical unit of tax office of Partner Country of P3B if known by
the concerned party.

(2)

Request as intended in paragraph (1) must be enclosed by support documents

and shall be delivered within the period stipulated in the applicable P3B, which is
calculated after the concerned party is imposed or will be imposed with tax not in
accordance with the provisions in P3B.

(3)

The Director of Taxation Regulations II shall examine and consider request for
implementing MAP as intended in paragraph (1).

(4)

In the event that the request as intended in paragraph (1) can be processed
further to be consulted with the Authorized Official in Partner Country of P3B, the
Director of Taxation Regulations II shall deliver request for implementing MAP in
writing to the Authorized Official in Partner Country of P3B.

(5)

The Director of Taxation Regulations II on behalf of the Director General of

Taxation shall reject request as intended in paragraph (1) in the event that the
request for implementing MAP is delivered after exceeding the period as
intended in paragraph (2) or the said request for implementing MAP is not in
accordance with the provisions in the applicable Indonesian P3B, within a
maximum period of 15 (fifteen) calendar days as from request for implementing
MAP is received.
Article 6

(1)

In the event that Indonesian Resident Taxpayer who files request for

implementing MAP also files application for correction or application for reduction
or for cancellation of tax assessment letter as intended in Article 16 paragraph
(1) or Article 36 paragraph (1) sub-paragraph b of Law on KUP, the Director
General of Taxation can process the MAP request.
(2)

In the event that the implementation of MAP generates Mutual Agreement before
the issuance of decision on application for correction or application for reduction
or for cancellation of tax assessment letter as intended in paragraph (1), the said
Mutual Agreement shall be set out in decision of the Director General of Taxation
on application for correction or application for reduction or for cancellation of tax
assessment letter.

(3)

In the event that the implementation of MAP does not yet generate Mutual
Agreement and the Indonesian Resident Taxpayer concerned files objection
application to the Director General of Taxation or appeal application to tax court,
the Director General of Taxation shall stop the implementation of MAP and shall
notify Taxpayer in writing, within a maximum period of 15 (fifteen) calendar days
as from it is known the Taxpayer concerned files objection application to the
Director General of Taxation or appeal application to tax court.
Article 7

(1)

If deemed necessary, the Directorate General of Taxation can hold meeting of

consultancy with Authorized Official of Partner Country of P3B to follow up MAP
request conducted by Indonesian Resident Taxpayer or Indonesian National
already becoming Resident Taxpayer of Partner Country of P3B.

(2)

Before reaching Mutual Agreement, the Director General of Taxation shall in

advance deliver written notification to Indonesian Resident Taxpayer or
Indonesian National already becoming Resident Taxpayer of Partner Country of
P3B regarding content of draft Mutual Agreement to obtain confirmation that the
concerned party can receive the content of draft Mutual Agreement.

(3)

The Director General of Taxation shall agree to Mutual Agreement with Partner
Country of P3B after Indonesian Resident Taxpayer or Indonesian National
already becoming Resident Taxpayer of Partner Country of P3B gives
confirmation that the concerned party can accept the said consensus.

(4)

Confirmation as intended in paragraph (3) must be given within a maximum

period of 30 (thirty) calendar days as from notification as intended in paragraph 2
is delivered.

(5)

In the event that Mutual Agreement results in the change of amount of tax
payable in Indonesia as set out in tax assessment letter, Statement of
Correction, and in Statement of Reduction or in Statement of Cancellation of tax
assessment letter, the Director General of Taxation shall perform correction,
reduction or cancellation of tax assessment letter or the said statement in
accordance with the applicable provisions.

(6)

The Director General of Taxation shall deliver Mutual Agreement to Taxpayer in

writing.
Article 8

(1)

The Director General of Taxation shall stop the implementation of MAP in the

event that:
a.

b.

(2)

Indonesian Resident Taxpayer or Indonesian National already becoming

Resident Taxpayer of Partner Country of P3B who delivers request for
implementing MAP:
1)

delivers letter of cancellation of MAP request to the Director

General of Taxation;

2)

does not approve the content of draft Mutual Agreement;

3)

does not fulfill all requests of data, information, or documents

needed by the Director General of Taxation;

4)

gives incorrect information to the Director General of Taxation; or

Indonesian Resident Taxpayer who delivers request for implementing

MAP files objection application to the Director General of Taxation or
appeal application to tax court.

The Director General of Taxation shall give Taxpayer written notification on the
cessation of implementation of MAP, within a maximum period of 15 (fifteen)
calendar days as from the cessation is decided upon.
Article 9

The Procedure for Filing and Implementation of MAP from Indonesian Resident
Taxpayer or Indonesian National Becoming Resident Taxpayer of Partner Country of
P3B shall be as set out in Attachment I hereto constituting an integral part hereof.
CHAPTER III
PROCEDURE FOR HANDLING MAP REQUEST FROM PARTNER COUNTRY OF
P3B
Article 10
(1)

Request for implementing MAP as intended in Article 2 sub-article c shall be

conducted among other things, in the event that:
a.

The Director General of Taxation issues tax assessment letter to Foreign

Taxpayer who conducts business or activity through permanent
establishment in Indonesia that is deemed not in accordance with the
provisions in P3B;

b.

correction of Transfer Pricing is made in Indonesia to Foreign Taxpayer

who conducts business or activity through permanent establishment in
Indonesia;

c.

Partner Country of P3B asks for Corresponding Adjustments in respect of

correction of Transfer Pricing conducted by Tax authority of the state
concerned to its resident Taxpayer who performs transaction of special
relation with Indonesian Resident Taxpayer;

d.

there is tax withholding by Taxpayer in Indonesia in respect of income

originating from Indonesia deemed not in accordance with the provisions
in P3B; or

e.

(2)

determination of state of domicile of Taxpayer possessing status as

Indonesian Resident Taxpayer and Resident Taxpayer of Partner
Country of P3B (Dual Residence).

The Director General of Taxation can reject MAP request filed by Partner
Country of P3B in respect of correction of Transfer Pricing conducted by the
Partner Country of P3B concerned, in the event that there is no provision on
Corresponding Adjustments in the applicable Indonesian P3B.
Article 11

(1)

The Director General of Taxation c.q. the Director of Taxation Regulations II

shall notify request for implementing MAP as intended in Article 2 sub-article c to
the Head of Tax Service Office where the Taxpayer relating to the said request is
registered.

(2)

Notification as intended in paragraph (1) shall cover information on:

a.

name of Partner Country of P3B who files request for implementing MAP;

b.

date of receipt of MAP request;

c.

name, Taxpayer Registration Number, and address of permanent

establishment or related resident Taxpayer;

d.

name and address of Resident Taxpayer of Partner Country of P3B

involved, in the case of Transfer Pricing; and

e.

name and address of the related Taxpayer as well as Tax Year to be

discussed in Dual Residence case.
Article 12

(1)

The Director General of Taxation shall reject MAP request as intended in Article
2 sub-article c for MAP request in respect of Corresponding Adjustments in the
event that the related Indonesian Resident Taxpayer files no MAP request to the
Director General of Taxation.

(2)

The Director of Taxation Regulations II on behalf of the Director General of

Taxation shall ask for statement in writing from Indonesian Resident Taxpayer to
make sure that the concerned party files no MAP request.
Article 13

In the event that the subject of request MAP from Partner Country of P3B is withholding
or collection of Income Tax by Taxpayer in Indonesia that is deemed not in accordance
with the provisions of P3B, the Director of Taxation Regulations II shall deliver in writing
to the said Taxpayer as to MAP request from Partner Country of P3B and can ask for
explanations on basis for tax withholding or collection, substance of transaction, and
can ask for the necessary documents through Tax Service Office where the Taxpayer is
registered.
Article 14

In following up MAP request as intended in Article 2 point c, the Director of Taxation

Regulations II can ask for information or help from other directorate, technical
implementation unit and/or vertical unit within the Directorate General of Taxation.
Article 15
(1)

In the event that MAP request as intended in Article 2 sub-article c relates to

permanent establishment in Indonesia and the said permanent establishment
also files application for correction or application for reduction or cancellation of
tax assessment letter as intended in Article 16 paragraph (1) or Article 36
paragraph (1) sub-paragraph b of Law on KUP, the Director General of Taxation
can implement MAP and can process application for correction or application for
reduction, or for cancellation of tax assessment letter.

(2)

In the event that the implementation of MAP generates Mutual Agreement before
the issuance of decision to application for correction or application for reduction
or for cancellation of tax assessment letter as intended in paragraph (1), the said
Mutual Agreement shall be set out in decision of the Director General of Taxation
upon the application for correction or application for reduction or for cancellation
of tax assessment letter.

(3)

In the event that the implementation of MAP does not yet generate Mutual
Agreement and the Taxpayer related to request for enforcing MAP files objection
application to the Director General of Taxation or appeal application to tax court,
the Director General of Taxation shall stop the implementation of MAP and shall
notify Partner Country of P3B that files request for MAP in writing.
Article 16

(1)

If deemed necessary or upon the request of Partner Country of Indonesian P3B,

the Directorate General of Taxation can hold meeting of consultancy with the
concerned Authorized Official of Partner Country of P3B to follow up MAP
application conducted by the said partner country.

(2)

In the event that the Director General of Taxation agrees to Mutual Agreement
with Partner Country of P3B, the Director of Taxation Regulations II shall
immediately give notification in writing to the Head of Tax Service Office where
the competent Taxpayer is registered.

(3)

The Head of Tax Service Office shall immediately deliver Mutual Agreement in
writing to the related Taxpayer.

(4)

In the event that Mutual Agreement results in change of amount of tax payable in
Indonesia in tax assessment letter, Statement of Correction, and in Statement of
Reduction or in Statement of Cancellation of tax assessment letter, the Director
General of Taxation shall perform correction, reduction or cancellation of tax
assessment letter or the said statements in accordance with the applicable
provisions.

(5)

In the event that Mutual Agreement deals with withholding or collection of

Income Tax in Indonesia, its follow up can be conducted based on the procedure
or method of restitution of tax that should not be payable, in accordance with the
applicable provisions.
Article 17

(1)

(2)

The Director General of Taxation can reject or stop the implementation of MAP
in the event that:
a.

MAP request is delivered by Partner Country of P3B after the time limit of
implementation of MAP as stipulated in P3B;

b.

substance of application filed by Partner Country of P3B is not included in

the scope of MAP as stipulated in the applicable P3B;

c.

Partner Country of P3B cancels MAP request;

d.

request for implementing MAP relates to permanent establishment in

Indonesia and the said permanent establishment files application for
objection to the Director General of Taxation or application for appeal to
tax court;

e.

Indonesian Resident Taxpayer related to MAP request in respect of

correction of Transfer Pricing conducted by tax authority of Partner
Country of P3B to its Resident Taxpayer, files no MAP application;

f.

Taxpayer whose tax assessment letter is issued by the Directorate

General of Taxation becoming focus of MAP request does not give all the
necessary documents;

g.

The Directorate General of Taxation cannot possibly collect documents

necessary to perform consultancy in the context of MAP because the
lapse of a long time after the issuance of tax assessment letter in
Indonesia; or

h.

there is sound indication that the implementation of consultancy in the

context of MAP will not generate the appropriate decision.

In the event that the Director General of Taxation and Authorized Official of
Partner Country of P3B agrees to stop the implementation of MAP, the Director
of Taxation Regulations II shall convey written notification to the related
Taxpayer.
Article 18

The Procedure for Handling MAP Request of Partner Country of P3B shall be as set out
in Attachment II hereto constituting an integral part hereof.
CHAPTER IV
IMPLEMENTATION OF MAP UPON THE INITIATIVE OF THE DIRECTOR GENERAL
OF TAXATION
Article 19
The Director General of Taxation can file request for implementing MAP as intended in
Article 2 sub-article d without being based on request from Indonesian Resident
Taxpayer or from Partner Country of P3B, to:
a.

review Mutual Agreement already agreed upon before because there is

indication of inaccurate information or documents delivered by Indonesian
Resident Taxpayer or Partner Country of P3B;

b.

ask for Corresponding Adjustments of correction of Transfer Pricing conducted

by the Directorate General of Taxation to Indonesian Resident Taxpayer in
respect of transaction of special relation with Resident Taxpayer of Partner
Country of P3B;

c.

make interpretation of a certain provision in P3B that is necessary in the

implementation of the P3B concerned; or

d.

conduct other necessary matters in the context of implementing the provisions of

P3B.
Article 20

The Director of Taxation Regulations II can ask for documents and/or additional
information in respect of MAP as intended in Article 19, from Indonesian Resident
Taxpayer or through Tax Service Office where the Indonesian Resident Taxpayer is
registered.
Article 21
(1)

In the event that the Director General of Taxation files request for implementing
MAP to Partner Country of P3B as intended in Article 19 relating to Indonesian
Resident Taxpayer, the Director of Taxation Regulations II shall notify in writing
the related Indonesian Resident Taxpayer:
a.

date of filing of request for implementing MAP;

b.

name of the related Partner Country of P3B;

c.

substances filed in MAP request;

d.

argumentation of filing of MAP request; and

e.

necessary other information.

(2)

If deemed necessary, the Directorate General of Taxation can hold meeting of

consultancy with Authorized Official of Partner Country of P3B to follow up MAP
as intended in Article 19.

(3)

In the event of reaching Mutual Agreement with Partner Country of P3B relating
to Indonesian Resident Taxpayer, the Director of Taxation Regulations II shall
deliver the Mutual Agreement in writing to the related Indonesian Resident
Taxpayer.

(4)

In the event that the implementation of MAP relating to Indonesian Resident

Taxpayer is ceased without generating Mutual Agreement with Partner Country
of P3B, the Director of Taxation Regulations II shall give notification on cessation
of MAP to the related Indonesian Resident Taxpayer.
Article 22

The Procedure for Implementation of MAP at Initiative of the Director General of

Taxation shall be as set out in Attachment III hereto constituting an integral part hereof.

CHAPTER V
IMPLEMENTATION OF CONSULTANCY IN THE CONTEXT OF MAP
Article 23
(1)

Meeting of consultancy in the context of MAP as intended in Article 7 paragraph

(1), Article 16 paragraph (1), and Article 21 paragraph (2) shall be held by the
Directorate of Taxation Regulations II or by Executor Team/Delegation of
Negotiator that is set up by the Director General of Taxation by considering
inputs from the Director of Taxation Regulations II.

(2)

The Director of Taxation Regulations II shall give inputs to the Director General
of Taxation as to directorate, technical implementation unit, and/or vertical unit
within the Directorate General of Taxation relating to issues to be discussed in
the implementation of MAP to become part of Executor Team /Negotiator
Delegation.

(3)

The Directorate of Taxation Regulations II or Executor Team/ Negotiator

Delegation shall prepare position of the Directorate General of Taxation in the
implementation of MAP and shall implement MAP in accordance with position
stipulated by the Director General of Taxation.
Article 24

(1)

In the event that request for implementing MAP relates to correction of Transfer
Pricing, the Director General of Taxation can set up Special Team in charge of
preparing position (position paper) of the Directorate General of Taxation,
performing coordination as well as supervision on units relating to request for
implementing MAP in respect of correction of Transfer Pricing, and becoming
member of negotiator delegation in the implementation of meeting of consultancy
in the context of MAP.

(2)

Special Team as intended in paragraph (1) shall consist of representative of the

Directorate of Tax Regulations II, the Directorate of Audit and Collection, and
audit implementation unit relating to correction of Transfer Pricing to be
discussed in the implementation of meeting of consultancy in the context of
MAP.

(3)

Special Team as intended in paragraph (1) can ask for data, information or
necessary documents in connection with correction of Transfer Pricing to
Indonesian Resident Taxpayer relating to request for implementing MAP.

(4)

In the event that Indonesian Resident Taxpayer fulfills no request for data,
information or documents entirely as intended in paragraph (3), the Director
General of Taxation can stop the implementation of MAP.
Article 25

The Director General of Taxation shall return Taxpayer

s documents delivered in the
context of implementation of MAP in the event that:
a.

implementation of MAP is cancelled or ceased; or

b.

Mutual Agreement has been reached with Partner Country of P3B.

Article 26

This Regulation of the Director General of Taxation shall come into effect as from the
date of stipulation.

Stipulated in Jakarta
on November 3, 2010
The Director General,
signed
Mochamad Tjiptardjo
Civil Service Reg. No. (NIP) 195104281975121002
-------------------Note
Attachment I
REGULATION OF THE DIRECTOR GENERAL OF
TAXATION
NUMBER PER-48 /PJ/2010
REGARDING
GUIDELINES
FOR
IMPLEMENTATION OF MUTUAL AGREEMENT
PROCEDURE BASED ON DOUBLE TAXATION
AVOIDANCE AGREEMENT
PROCEDURE FOR FILING AND IMPLEMENTATION OF MAP FROM INDONESIAN
RESIDENT TAXPAYER OR INDONESIAN NATIONAL BECOMING RESIDENT
TAXPAYER OF PARTNER COUNTRY OF P3B
Taxpayer shall file MAP Application in writing that is enclosed by support documents
completely to:
a.

Tax Service Office where the Taxpayer is registered for Indonesian Resident
Taxpayer.

b.

The Directorate of Taxation Regulations II for Indonesian National already

becoming Resident Taxpayer of Partner Country of P3B in respect of the
provisions on non-discrimination in the applicable P3B.

A.

Tax Service Office of place of Registration of Taxpayer

1.

Officer of TPT shall receive application for implementing MAP from

Indonesian Resident Taxpayer, then shall print out Proof of Letter
Receipt (BPS) and Document Flow Supervision Sheet (LPAD). BPS will
be submitted to Taxpayer whereas LPAD will be united to application
along with its completeness. Then he shall forward the application along
with its completeness to Account Representative (AR).

2.

AR shall perform:
a.

examination on the completeness of application for implementing

MAP from Taxpayer and shall complete the related tax

documents available in administration of KPP;

notes:
In the event that MAP request delivered is incomplete, AR shall
give Taxpayer notification within a maximum period of 15 (fifteen)
calendar days as from MAP request is received, that declares that
MAP request is incomplete and shall ask for Taxpayer to
complete incomplete items.
b.

drawing up covering letter to the Directorate of Taxation

Regulations II,

then shall forward it to the Head of Supervision and Consultancy Section.

B.

3.

The Head of Supervision and Consultancy Section shall examine the

completeness of Taxpayer
s application and shall initial covering letter
then forward it to the Head of Office.

4.

The Head of Tax Service Office shall assess and sign covering letter to
the Directorate of Taxation Regulations II.

5.

Executor of Supervision and Consultancy Section shall administer and

deliver covering letter along with Taxpayer
s application and its
completeness to the Directorate of Tax Regulation II within a maximum
period of 30 (thirty) calendar days as from request is received completely
through General Affairs Division (SOP for Documents Delivery at KPP).

The Directorate of Taxation Regulations II

1.

The Director of Taxation Regulations II shall receive MAP Application

from:
a.

Indonesian Resident Taxpayer through Tax Service Office; or

b.

Indonesian National becoming Resident Taxpayer of Partner

Country of P3B,

then shall assign the Head of Sub-directorate of International Taxation

Agreement and Cooperation to process the application.
2.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall assign the Head of Section of Sub-directorate of
International Taxation Agreement and Cooperation to consider
Taxpayer
s application.

3.

The Head of Section of Sub-directorate of International Taxation

Agreement and Cooperation shall assign executor to examine and draw
up concept /draft of:
a)

MAP request to authorized official in Partner Country of P3B in

the event that MAP application can be processed further to be
consulted authorized official in Partner Country of P3B;

b)

request for explanation to Taxpayer;

c)

Mutual Agreement (MAP) in the event of reaching agreement; or

d)

letter of rejection or of cessation of implementation of MAP in the

event that application of Taxpayer cannot be processed further,
within a maximum period of 15 (fifteen) calendar days as from:
1)

receipt of MAP request; or

2)

it is known that the Taxpayer concerned files objection

application to the Director General of Taxation or appeal
application to tax court.

4.

Executor of Sub-directorate of International Taxation Agreement and

Cooperation shall draw up concept of MAP request to authorized official
in Partner Country of P3B, concept of explanation request to Taxpayer,
draft Mutual Agreement, or concept of letter of rejection or of cessation of
implementation of MAP then shall forward them to the Head of Section of
Sub-directorate of International Taxation Agreement and Cooperation.

5.

The Head of Section of Sub-directorate of International Taxation

Agreement and Cooperation shall examine and initial MAP request,
explanation request, Mutual Agreement, or letter of rejection or of
cessation of implementation of MAP then shall forward them to the Head
of Sub-directorate of International Taxation Agreement and Cooperation.

6.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall examine and initial MAP request, explanation request,
Mutual Agreement, or letter of rejection or of cessation of implementation
of MAP then shall forward them to the Director of Tax Regulations II.

7.

The Director of Tax Regulations II shall assess and sign MAP request,
explanation request, Mutual Agreement, or letter of rejection or of
cessation of implementation of MAP.

8.

Executor of Sub-directorate of International Taxation Agreement and

Cooperation shall administer and deliver:
a.

MAP request to authorized official in Partner Country of P3B;

b.

explanation request to Taxpayer;

c.

Mutual Agreement (MAP) to Taxpayer with a copy addressed to

KPP where the Taxpayer is registered; or

d.

letter of rejection or of cessation of implementation of MAP to

resident Taxpayer with a copy addressed to KPP where Taxpayer
is registered,

through General Affairs Division (SOP for Documents Delivery at the

Head Office).
9.

The process is finished.

Notes:
The technical provisions in the context of settling MAP application shall

remain based on this Regulation of the Director General of Taxation.

Attachment II
REGULATION OF THE DIRECTOR GENERAL OF
TAXATION
NUMBER PER-48 /PJ/2010
REGARDING
GUIDELINES
FOR
IMPLEMENTATION OF MUTUAL AGREEMENT
PROCEDURE BASED ON DOUBLE TAXATION
AVOIDANCE AGREEMENT
PROCEDURE FOR HANDLING MAP REQUEST FROM PARTNER COUNTRY OF
P3B
1.

The Director of Taxation Regulations II shall receive and examine MAP request
from Partner Country of P3B then assign the Head of Sub-directorate of
International Taxation Agreement and Cooperation to process the application.

2.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall assign the Head of Section of Sub-directorate of International
Taxation Agreement and Cooperation to consider Taxpayer
s application.

3.

The Head of Section of Sub-directorate of International Taxation Agreement and

Cooperation shall assign executor to examine and draw up concept/draft of:
a.

notification on MAP request to the Head of Tax Service Office of place of

Taxpayer and explanation request;

b.

notification on MAP request to Taxpayer and explanation request through

KPP, in the event that MAP request is caused by withholding/collection
by Taxpayer; and

c.

Mutual Agreement (MAP) in the event of reaching agreement; or

d.

letter of rejection or of cessation of implementation of MAP in the event

that MAP request cannot be processed further.

4.

Executor of Sub-directorate of International Taxation Agreement and

Cooperation shall draw up concept of notification on MAP request, explanation
request, draft Mutual Agreement or concept of letter of rejection or of cessation
of implementation of MAP then shall forward them to the Head of Section of Subdirectorate of International Taxation Agreement and Cooperation.

5.

The Head of Section of Sub-directorate of International Taxation Agreement and

Cooperation shall examine and initial notification on MAP request, explanation
request, Mutual Agreement or concept of letter of rejection or of cessation of
implementation of MAP then shall forward them to the Head of Sub-directorate of
International Taxation Agreement and Cooperation.

6.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall examine and initial notification on MAP request, explanation

request, Mutual Agreement or concept of letter of rejection or of cessation of
implementation of MAP then shall forward them to the Director of Tax
Regulations II.
7.

The Director of Taxation Regulations II shall assess and sign notification on MAP
request, explanation request, Mutual Agreement or concept of letter of rejection
or of cessation of implementation of MAP.

8.

Executor of Sub-directorate of International

Cooperation shall administer and deliver:

Taxation

Agreement

and

a.

notification on MAP request to the Head of Tax Service Office where

Taxpayer is registered or Taxpayer in the event that MAP request is
caused by withholding/collection by Taxpayer;

b.

explanation request;

c.

Mutual Agreement (MAP) to Partner Country of P3B with a copy

addressed to KPP where Taxpayer is registered; or

d.

letter of rejection or of cessation of implementation of MAP to Partner

Country of P3B with a copy addressed to KPP where Taxpayer is
registered,

through General Affairs Division (SOP Procedure for Documents Delivery at the
Head Office)
9.

The process is finished.

Notes:
The technical provisions in the context of settling MAP application shall remain
based on this Regulation of the Director General of Taxation.

Attachment III
REGULATION OF THE DIRECTOR GENERAL OF
TAXATION
NUMBER PER-48 /PJ/2010
REGARDING
GUIDELINES
FOR
IMPLEMENTATION OF MUTUAL AGREEMENT
PROCEDURE BASED ON DOUBLE TAXATION
AVOIDANCE AGREEMENT
PROCEDURE FOR IMPLEMENTATION OF MAP UPON THE INITIATIVE OF THE
DIRECTOR GENERAL OF TAXATION
1.

The Director General of Taxation shall assign the Director of Taxation

Regulations II to file MAP request without being based on request from resident
Taxpayer or from Partner Country of P3B.

2.

The Director of Taxation Regulations II shall assign the Head of Sub-directorate

of International Taxation Agreement and Cooperation to file MAP request.

3.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall assign the Head of Section of Sub-directorate of International
Taxation Agreement and Cooperation to file MAP request.

4.

The Head of Section of Sub-directorate of International Taxation Agreement and

Cooperation shall assign executor to examine and draw up concept /draft of:
a.

MAP request to Partner Country of P3B;

b.

request for documents and/or additional information relating to MAP from

resident Taxpayer or from KPP where the resident Taxpayer is
registered;

c.

Mutual Agreement (MAP) in the event of reaching agreement; or

d.

letter of cessation of implementation of MAP in the event that MAP is

ceased.

5.

Executor of Sub-directorate of International Taxation Agreement and

Cooperation shall draw up concept of MAP request to Partner Country of P3B,
request for documents and/or for additional information, draft Mutual Agreement
or concept of letter of cessation of implementation of MAP then shall forward
them to the Head of Section of Sub-directorate of International Taxation
Agreement and Cooperation.

6.

The Head of Section of Sub-directorate of International Taxation Agreement and

Cooperation shall examine and initial MAP request to Partner Country of P3B,
request for documents and/or for additional information, Mutual Agreement or
letter of cessation of implementation of MAP then shall forward them to the Head
of Sub-directorate of International Taxation Agreement and Cooperation.

7.

The Head of Sub-directorate of International Taxation Agreement and

Cooperation shall examine and initial MAP request to Partner Country of P3B,
request for documents and/or for additional information, Mutual Agreement or
letter of cessation of implementation of MAP then shall forward them to the
Director of Tax Regulations II.

8.

The Director of Tax Regulations II shall assess and sign MAP request to Partner
Country of P3B, request for documents and/or for additional information, Mutual
Agreement or letter of cessation of implementation of MAP.

9.

Executor of Sub-directorate of International

Cooperation shall administer and deliver:

Taxation

Agreement

and

a.

MAP request to Partner Country of P3B;

b.

request for document and/or for additional information;

c.

Mutual Agreement (MAP) to Taxpayer with a copy addressed to KPP

where Taxpayer is registered; or

d.

notification on cessation of MAP to Taxpayer,

through General Affairs Division (SOP Procedure for Documents Delivery at the
Head Office).
10.

The process is finished.

Notes:
The technical provisions in the context of settling MAP application shall remain
based on this Regulation of the Director General of Taxation.

Source:

LOOSE LEAF REGULATION OF THE DIRECTOR GENERAL OF

TAXATION YEAR 2010