Legal Remedies for Objections in the Perspective of the HPP Law

Legal Remedies for Objections in the Perspective of the HPP Law

KUP - 23 Mar, 2023 10:03 WIB

Jakarta, Ideatax -- The Directorate General of Taxes (DGT) reported that during 2019 – 2021 there was a decrease in objection applications (DGT, 2022). In 2021, there are 18,045 applications of objections received by the DGT. While during 2019 and 2020, the number of objection applications received by the DGT was 18,985 and 18,849 respectively (DGT, 2022).

Source: DGT, 2022


Based on the graph above, it can be seen that even though there was a decrease in the number of objection applications during 2019 – 2021, there was an increase in the 2017 – 2018 period. In 2017, the number of objection applications received by the DGT was 9,335 and increased by 12,418 in 2018.


In general, the term objection in taxation is defined as a legal remedy that can be taken by the taxpayers if they are dissatisfied with the tax assessment letter issued by the tax service office or withholding by a third party (Ispiyarso, 2019). Furthermore, Ispiyarso (2018) stated that objections are administrative legal efforts that are outside the tax court system which are intended to plead for justice for taxpayer losses.


The legal basis for implementing tax objections is regulated in Articles 25 and 26 of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations or Harmonisasi Peraturan Perpajakan (HPP). Based on these provisions, it is regulated that taxpayers can apply tax objections to five matters, namely: Notice of Tax Assessment or Surat Ketetapan Pajak (SKP) for Underpayment, Additional Payment, Overpayment, Nil-payment, as well as against tax withholding or collection by third parties.


Furthermore, the General Provisions and Tax Procedures or Ketentuan Umum dan Tata Cara Perpajakan (KUP) Law also stipulates that an objection must be submitted in writing and in the Indonesian language which at least contains information regarding the amount of tax owed, withheld or collected, the amount of loss according to the calculation of the taxpayer and the reasons on which the calculation is made. One letter of objection can only be filed for one letter of tax assessment, withholding or collection.


It should be noted that the letter of objection must be submitted to the tax office where the taxpayer is registered within three months from the time the tax assessment letter is received or from the date of tax withholding or collection. Henceforth, the registered tax office will send the Taxpayer objection application letter to the Regional Office to be examined and processed by the Objection Reviewer.


One thing that needs to be noticed before the Taxpayer submits a letter of objection is that the Taxpayer must pay off the accrued tax at least in the amount approved by the Taxpayer in the final audit discussion. Therefore, the Taxpayer must carefully calculate the amount of tax approved when conducting the final discussion of the auditor's results with the audit team.


During the objection application process, the Taxpayer will need to provide books, records, data, information and or information as material for consideration in deciding the objection application. Additionally, the objection application reviewer can also conduct observation, discussions and clarification on the required matters if necessary.


According to the provisions, the Taxpayer's objection application must be completed by the Objection Reviewer within a period of twelve months from the receipt of the application letter which means, if the time period elapses, the objection submitted by the taxpayer is considered granted and the Director of General of Taxes issues an objection decision letter within a month after the twelve-month period ends.


There are four types of objection decisions issued on an objection letter: fully granted, partially granted, refused or even increased the amount of tax to be paid by the taxpayer.


One of the things that underwent a change when the HPP Law was implemented was administrative sanctions that must be paid by the Taxpayer if the Taxpayer's objection application is rejected or partially granted. The HPP Law regulates that if a Taxpayer's objection is rejected or partially granted, the Taxpayer is subject to an administrative sanction of 30% (thirty percent) of the total tax based on the objection letter minus the tax paid prior to filing the objection. Compared to the foregoing rules, this provision is quite adaptive in responding the needs of taxpayers. In the foregoing KUP provisions, the amount of administrative sanctions that must be paid by the taxpayers if their objection is rejected or partially granted was 50% (fifty percent) of the amount of the underpaid tax—a quite large number in the business world.


At this point, we can see that the HPP Law supports the taxpayers to be able to resolve their legal disputes fairly. Especially with the implementation of e-objection which makes it easier for taxpayers to submit a letter of objection electronically.



DJP. (2022). Laporan Tahunan 2021: Berkontribusi Bersama dalam Pemulihan Ekonomi Nasional. Jakarta: Direktorat Jenderal Pajak.

Ispiyarso, B. (2018). Upaya Hukum Dalam Sengketa Pajak. Adminitrative Law, 1(2), 9-14.

Ispiyarso, B. (2019). Kelemahan Lembaga Keberatan Pajak. Adminitrative Law & Governance Journal, 248 - 258.


Related Provisions

  • Law Number 6 of 1983 concerning General Provisions and Tax Procedures as last amended by Law Number 7 of 2021 concerning Harmonization of Tax Regulations.

  • Regulation of the Ministry of Finance Number 9 of 2013 concerning Procedures for Submitting Objections as amended by PMK Number 202/PMK.03/2015.

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