Preparing for a Tax Audit: A Readiness Checklist for Finance Leaders

Tax audits in Indonesia may be triggered by refund claims, by risk analysis, or by specific data. Whatever the trigger, the experience is smoother for companies that know where their records and positions stand before the first request arrives.

A readiness checklist

• Reconcile commercial financial statements to the corporate income tax return.
• Reconcile revenue to VAT returns and withholding tax records.
• Index key contracts, especially with related parties and foreign counterparties.
• Confirm that positions relying on interpretation are documented.
• Appoint a single point of contact and keep a log of every request and response.

During the audit

Respond within the deadlines given, provide what is requested, and keep explanations consistent with filed positions. Where a finding is disputed, record the basis for disagreement in writing so that it can be relied on at the objection stage if needed.