Govt. Introduces New Tax Collection Mechanisms for Outstanding Taxes

In an attempt to provide greater legal certainty and simplify the various processes involved in the collection of taxes, the Minister of Finance (“Minister”) has issued Regulation No. 189/PMK.04/2020 on Procedures for the Implementation of Tax Collection for Outstanding Tax (“Regulation 189/2020”), which introduces updated tax collection mechanisms that were previously addressed under various other regulations that have now been repealed and replaced, specifically:

1. Decree of the Minister No. 563/KMK.04/2000 on the Blocking and Confiscation of Tax Bearer Assets Saved in Banks for the Purpose of Tax Collection Through Distress Warrants (“Decree 563/2000”); and
2. Regulation of the Minister No. 24/PMK.03/2008 on Procedures for the Implementation of Collection Through Distress Warrants and the Implementation of Immediate and Complete Collection, along with its amendment (collectively referred to as “Regulation 24/2008”).