Key Triggers of Tax Audits and How to Prepare

Reza Pradana, Tax Partner and Attorney at Tax Damara Consulting, outlined the main triggers of tax audits during a webinar in Jakarta on 28 November 2025. He noted that the Directorate General of Taxes (DJP) conducts audits under Indonesia’s self‑assessment system. The briefing covered risk‑profiling mechanisms and audit triggers.

DJP evaluates compliance risk through risk profiling by account representatives, the Compliance Risk Management (CRM) system, and concrete data defined in PER‑18/2025. Audit triggers include tax refunds under Article 17 B, tax returns showing losses for three consecutive years, changes in fiscal year or accounting method, asset revaluation, and corporate actions such as mergers or liquidation. PKP that do not make taxable supplies and taxpayers who fail to submit SPOP are also subject to examination.

Taxpayers are advised to keep tax documents organized, understand their rights and obligations, and may engage a tax attorney to mitigate risk. Maintaining clear communication with auditors—via phone, email, or visits to the tax office—is considered essential. The audit procedures are now governed by Minister of Finance Regulation No 15/2025, which classifies audits into full (5 months), focused (3 months), and specific (1 month) types.