Tax Collection Letter: Definition, Sanctions and How to Pay It Off

A Tax Collection Letter (STP) is an instrument issued by the Directorate General of Taxes or local tax office to notify Taxpayers (WP) about the amount of tax that still needs to be paid. Taxpayers who feel there is a discrepancy in the STP or feel they have been disadvantaged have the right to submit an objection or appeal to the tax office in accordance with applicable regulations. 

Imagine you order food at a restaurant, then you get a bill for the food you ordered. Well, the Tax Bill (STP) is similar to your food bill, but the version is for taxes.

So, sometimes the government peeks at your tax report and says, "Eh, it looks like you're underpaying!" So, that's where STP emerged. This is a kind of 'reminder' or reminder for you to immediately pay off the taxes you haven't paid.

Simply put, STP is a kind of official bill from the government regarding the taxes you have to pay. So, if you get STP, you should immediately check and complete it! 

In Indonesia, provisions regarding tax bills can be found in laws and regulations governing taxes, such as Law no. 28 of 2007 concerning General Provisions and Tax Procedures (KUP). Several things regulated in the Law include the process of issuing invoices, the rights and obligations of taxpayers, as well as the resolution process if there is a dispute.

Definition of Tax Collection Letter

A Tax Collection Letter (STP) is a letter issued by the Directorate General of Taxes (DJP) or the tax office to notify Taxpayers (WP) about the amount of tax that must be paid. STP is usually issued if there is an underpayment of tax or when there is a correction to the tax report that has been submitted by the taxpayer.

When receiving the STP, the Taxpayer has the obligation to immediately make payment according to the amount written in the letter. If a taxpayer does not pay tax according to the STP within the specified time period, they may be subject to sanctions in the form of fines or interest.

Usually, before the STP is issued, the tax office will carry out an inspection or audit of the tax report submitted by the tax office Taxpayers to ensure accuracy and compliance with applicable tax provisions.

It is important for taxpayers to understand the contents of the STP and if they feel there is a discrepancy or error, they can submit an objection in accordance with applicable procedures.

If you receive an STP, here's how to pay it off and what can happen if you ignore it:

How to Pay Off STP

Pembayaran: Payments can be made through perception banks that have been appointed by the government (usually government banks such as BRI, BNI, Mandiri, etc.). You must fill in the tax deposit slip with the required details and present the STP when making the payment.

Proof of payment: After making payment, you will receive proof of tax payment. Keep this document as proof that you have paid your tax obligations.

E-Billing: The government may also offer the option to make payments electronically through an e-billing system. You need to register and follow the instructions provided by the tax office to use this method.

Sanctions for Failure to Pay STP:

Fines and Interest: If you do not pay within the specified deadline (usually 1 month after the STP is issued), you may be subject to fines and/or interest for late payment.

Forced Action: If taxpayers continue to ignore the STP, the tax office can take coercive action, such as confiscation of assets or deductions from your bank account.

Blacklisting: Delays or omissions in paying taxes can be recorded by the tax office and impact your credit reputation or your ability to obtain certain facilities from financial institutions.

Prosecution: In serious cases, tax office can initiate prosecution proceedings in the tax court.

In general, a tax bill is issued by the tax authority after an examination or assessment of the tax report submitted by the taxpayer. The letter will usually include the amount of tax that must be paid, fines (if any), and the payment deadline.

If you don't pay immediately, the government might get 'bitten' and start 'chasing' you with fines or other sanctions. So, it's better to deal with it immediately so it won't be a hassle later!

However, before raising an objection, you should consult with a tax consultant or expert who has experience in the field of taxation.