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Tax Collection with Distress Warrant

Tax collection is a stage of actions made by the General Directorate of Taxes to tax bearer in order to pay off their tax debt along with the cos of tax collection. It is regulated in the provisions of Article 1 (9) of Law No. 19 of 2000 concerning Tax Collection with Distress Warrant (PPSP Law). Tax Bearer in this case refers to an individual or entity responsible for paying taxes, including representatives that represents taxpayer of their rights and obligations.

PPSP Law stipulates that the tax collection made by the Directorate General of Taxes to tax bearers who are in arrears can be done in stages, starting from reprimanding or giving notice; carry out billing immediately and at once; notify a distress warrant.

A. Reason for the Issuance of Distress Warrant

Article 8 (1) of the PPSP Law regulates the conditions under which a distress warrant must be issued, among them are the following:

  1. Tax bearer does not pay off the tax debt and a letter of reprimand or notice letter has been issued to him, which is sent 7 days after the due date of tax payment.
  2. The tax bearer has been billed immediately and at the same time
  3. The tax bearer does not fulfill the provisions stated in the decision on the approval of installments or tax payment delays

If these three conditions have been met, the Directorate General of Taxes will issue a distress warrant 21 (twenty-one) days after the letter of reprimand was submitted. The fdistress warrant is then delivered directly by the bailiff to the tax bearer. If the tax bearer does not pay off his tax debt 2×24 hours after the distress warrant is notified, tax official will issue an order to carry out confiscation.

In order to avoid tax collection by distress warrant which will only end with confiscation of assets belonging to the tax bearer, therefore, every taxpayer needs to pay attention to the deadline for paying taxes and always comply with tax regulations in Indonesia.

Tax Collection

Read More: Super Tax Deduction


ET Consultant is a Business Consultant and Legal Consultant Expert that provides support for local and multinational clients to start and manage their business operations in Indonesia. ET Consultant specializes in Business Incorporation, Licensing & Legal, Accounting & Taxes, Immigration, and Advisory Services.

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An Indonesian group advisory or consulting firm that provides Business and Legal Consultant for local and multinational client support for start-ups and managing business operations in Indonesia. ET Consultant provides a solid legal foundation with experience, reasonable cost, reliable corporate & business legal services with excellence, integrity, and trusted services for ease of doing business in Indonesia.

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