Understanding the Proxy of Taxpayer

Understanding the Proxy of Taxpayer

KUP - 18 Aug, 2023 10:08 WIB

Jakarta, Ideatax -- The Law on General Provisions and Tax Procedures explicitly regulates that taxpayers are required to fill out and submit tax returns correctly, completely, clearly and sign them. In the event that the Taxpayer is unable to fill in or sign the Tax Return, the Taxpayer may appoint a proxy with a special power of attorney. Furthermore, the same law also regulates that an individual or entity may appoint a proxy with a special power of attorney to exercise rights and fulfill obligations in accordance with the provisions of tax laws and regulations. Thus, what exactly are the requirements for a tax proxy? Through this article, we will discuss further about tax proxies in order to fulfill their tax rights and obligations.

 

In general, the provisions regarding tax proxy can be found in the Minister of Finance Regulation Number PMK-229/PMK.03/2014 concerning Requirements and Implementation of Rights and Obligations of a Proxy. The provision regulates that a proxy is a person who receives special power of attorney from a taxpayer to exercise the rights and/or fulfill certain tax obligations of the taxpayer in accordance with the provisions of laws and regulations in the field of taxation.

 

Types of Tax Proxies

There are two types of tax proxies: tax consultants and taxpayer employees. A tax Consultant may accept proxy from individual taxpayer and/or corporate taxpayer in accordance with the provisions of laws and regulations in the field of taxation as long as they have a tax consultant practice license issued by the Director General of Taxes or a designated official, and submit a Statement Letter as a tax consultant.

 

In addition, a taxpayer's employee may receive power of attorney from an individual taxpayer or corporate taxpayer as long as the person is a permanent and active employee who receives income from the taxpayer as proven by the list of names of permanent employees who have been deducted from Income Tax Article 21 in the reported Periodic Income Tax Return Article 21.  

 

Moreover, the taxpayer employee appointed as proxy must have a brevet certificate in taxation, a diploma of formal education in taxation, or a tax consultant certificate issued by the Tax Consultant Certification Organizing Committee.

 

Furthermore, Article 4 of PMK 229/2014 regulates that there are five requirements to become a tax proxy, including the following:

  • mastering the provisions of laws and regulations in the field of taxation;

  • owns a special power of attorney from the taxpayer who gives the power of attorney;

  • owns a Taxpayer Identification Number;

  • has submitted the Annual Income Tax Return for the last Fiscal Year, except for a proxy whose last Fiscal Year has not had the obligation to submit an Annual Income Tax Return; and

  • has never been convicted for committing a criminal offense in the field of taxation.

 

Implementation of Proxy

In exercising the taxation rights and obligations of a taxpayer, a proxy is required to submit a special power of attorney from the taxpayer accompanied by complete documents to the DGT employee authorized to handle the implementation of taxation rights and obligations.

 

For tax consultants, the complete documents that must be submitted include a photocopy of the tax consultant practice license card, a statement letter as a tax consultant, a photocopy of the NPWP and a photocopy of the receipt of the Annual Tax Return for the last tax year.

 

As for employees acting as proxy, the complete documents that must be submitted are photocopies of brevet certificates in the field of taxation, diplomas of formal education in the field of taxation, or tax consultant certificates, photocopies of NPWP, photocopies of receipts of annual income tax returns for the last tax year and photocopies of lists of permanent employees from whom Income Tax Article 21 is deducted.

 

Taxation Power of Attorney

As mentioned above, in performing the taxation rights and obligations of taxpayers, one of the documents that must be carried by the tax proxy is a power of attorney. According to KBBI, a power of attorney is a letter containing the granting of authority to someone to take care of something. Civil law regulates that there are two types of power of attorney: general power of attorney and special power of attorney. Provisions regarding general power of attorney are regulated in Article 1786 of the Civil Code, while special power of attorney is regulated in Article 1795 of the Civil Code.

 

As part of a special power of attorney, a tax power of attorney must contain the following: 1) name, address, and signature on the seal and Tax ID Number of the taxpayer granting the power of attorney. 2) name, address, and signature as well as TIN of the proxy. 3) certain taxation rights and/or obligations that are authorized which include tax purposes, tax types, and Tax Period/Part of Tax Year/Tax Year.

 

Keep in mind that one special power of attorney is only valid for one proxy and one implementation of certain taxation rights and/or obligations. Thus, the obligation to file SPT and the obligation to submit a response to SP2Dk cannot be combined in one power of attorney.

 

A person who does not meet the proxy requirements as mentioned above, is not considered as a proxy and cannot perform the taxation rights and/or obligations of the taxpayer who grants the proxy.

 

Related Regulations

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

  • Minister of Finance Regulation Number PMK-229/PMK.03/2014 concerning Requirements and Implementation of Rights and Obligations of a Proxy.

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