Tax Affidavit Template for Indonesia

When dealing with Indonesian tax matters, you may need to provide formal sworn statements about your tax status or compliance. A Tax Affidavit serves this purpose by creating a legally binding declaration that can be used with the Indonesian Tax Authority (DJP) or business partners who require verified tax information.

When do you need this document?

You'll typically need a Tax Affidavit when applying for special tax status or exemptions, such as investment incentives or tax holidays. International businesses often require this document when establishing operations in Indonesia or when foreign partners need verification of your tax compliance status. The document is also necessary when clarifying specific tax positions to the DJP, particularly during tax audits or investigations. If you're involved in mergers, acquisitions, or significant business transactions, counterparties may request a Tax Affidavit to verify your tax standing. Additionally, certain government contracts or licensing procedures may require formal tax compliance declarations through this affidavit.

Key legal considerations

The most critical aspect of a Tax Affidavit is its legal binding nature under Indonesian law. Once signed and notarized, you become legally accountable for all statements made in the document, with potential penalties for false declarations. The affidavit must include accurate tax identification numbers (NPWP), complete disclosure of relevant tax periods, and truthful statements about your compliance status. Any material misrepresentation can result in administrative penalties, criminal charges, or tax reassessments. The document should reference specific tax regulations or rulings that support your declarations, and you must ensure all supporting documentation is available if requested by authorities. Professional review by a tax consultant is highly recommended before execution, especially for complex tax matters or international transactions.

Legal requirements in Indonesia

Indonesian law requires Tax Affidavits to comply with the General Provisions and Tax Procedures Law (KUP), particularly Law No. 6 of 1983 and its amendments under Law No. 28 of 2007 and Law No. 16 of 2009. The document must be properly notarized under Law No. 30 of 2004 on Notary Position, ensuring authentication and legal validity. Government Regulation No. 74 of 2011 provides detailed requirements for tax-related documentation, including specific formatting and content standards for affidavits. The declarant must have proper legal capacity and authority to make the statements, particularly for corporate entities where authorized directors or legal representatives must sign. The affidavit should include reference numbers if applicable, complete contact information, and clear identification of the purpose and scope of the declaration to meet DJP administrative requirements.