The Secretary General of the Ministry of Finance, Heru Pambudi, revealed that as of 2024, there are 7,390 registered tax consultants in Indonesia, according to the Financial Professional Development Center (Pusat Pembinaan Profesi Keuangan/PPPK). When compared to the number of taxpayers, the ratio is striking, indicating just one consultant for every 735 taxpayers.
Tax consultants play a vital role in assisting taxpayers in resolving their tax issues and promoting tax education, which in turn enhances overall compliance. Notably, tax consultants often act as tax attorneys, representing clients in the exercise of their tax rights and obligations. In today’s Coretax system era, such representation can even be conducted digitally through impersonation protocols authorized by the taxpayer.
This article delves into the definition of tax attorneys, their legal foundation in Indonesia, and how similar roles function in other countries. Broadly defined, a tax attorney is an individual or legal entity authorized by a taxpayer to act on their behalf in both administrative and dispute-related matters.
These representatives may interface directly with tax authorities, such as the Directorate General of Taxes (DGT), and appear in tax court proceedings. The legal basis for tax attorneys in Indonesia is established under Law of the Republic of Indonesia Number 6 of 1983 concerning General Provisions and Procedures of Taxation (Undang -Undang Ketentuan Umum dan Tata Cara Perpajakan/KUP Law), as amended by Law of the Republic of Indonesia Number 7 of 2021 concerning Harmonization of Tax Regulations (Undang-Undang Harmonisasi Peraturan Perpajakan/HPP Law).
Article 4 of the KUP Law, stipulates that if a taxpayer appoints a representative to complete and sign a tax return, a special power of attorney must accompany the filing. Furthermore, Article 32, Paragraph 3, of the KUP Law provides that individuals or entities may appoint an attorney through a special power of attorney to carry out their tax-related rights and obligations, with further guidance outlined in the Minister of Finance Regulation.
These provisions are detailed in Minister of Finance Regulation No. 229/PMK.03/2014, which outlines the requirements and duties of tax attorneys. The regulation mandates five qualifications for tax attorneys. First, be well-versed in tax laws and regulations. Second, hold a valid special power of attorney from the taxpayer. Third, have a Taxpayer Identification Number (Nomor Pokok Wajib Pajak/NPWP). Fourth, have submitted the most recent annual income tax return, unless exempted. Fifth, do not have a criminal record in the taxation field.
Proficiency in tax regulations is typically demonstrated through a valid tax consultant license issued by the DGT or an appointed official. However, taxpayer employees may also qualify as tax attorneys if they meet at least one of the following criteria. First, hold a tax brevet certificate from an accredited training institution. Second, possess a formal education degree in taxation, at least an associate degree, from an accredited public or private university. Third, hold a tax consultant certification issued by the official certification committee.
In the United States (U.S.), the equivalent of a tax attorney is known as either a tax attorney or an enrolled agent. These professionals must be registered with the Internal Revenue Service (IRS) and are licensed to practice. A main distinction in the U.S. is the legal privilege that protects communications between client and attorney, much like the confidentiality afforded in criminal defense cases.
In Germany, the equivalent profession is called a Steuerberater. This is a highly regulated role that requires candidates to undergo rigorous education, training, and examinations. Steuerberater is licensed to manage tax administration and to represent clients in tax court, suggesting the profession’s prestige and strict regulatory standards in advanced economies.
As tax systems become more complex and digitalization accelerates, the role of the tax attorney is expected to evolve into a more strategic function. Beyond legal representation, tax attorneys will increasingly contribute to digital compliance and tax technology integration. The continued development of this profession will depend on strong regulations and standardized professional education. If you need a reliable and trusted representation, Ideatax is ready to support your needs with qualified tax attorneys.
Legal References
- Law of the Republic of Indonesia Number 6 of 1983 concerning General Provisions and Procedures of Taxation, as amended by Law of the Republic of Indonesia Number 7 of 2021 concerning Harmonization of Tax Regulations.
- Minister of Finance Regulation Number 229/PMK.03/2014 concerning the Requirements and Implementation of the Rights and Obligations of a Tax Attorney.
