SP2DK: From Clarification to Contribution

Since 1983, Indonesia has officially adopted a self-assessment system, giving taxpayers full responsibility to calculate, remit, and report their own tax obligations. While the system may appear simple on paper, in practice, it demands careful and consistent compliance. To maintain a balanced approach between trust and oversight, the Directorate General of Taxes (DGT) relies on precise instruments to ensure tax data aligns accurately. To meet this need, the Request for Explanation of Data and/or Information (SP2DK) was introduced.

SP2DK is a letter issued by the Tax Service Office (KPP) to request clarification from taxpayers regarding indications of unfulfilled tax obligations. It is not a tax assessment letter, but rather an initial channel of communication. For taxpayers, it provides an opportunity to clarify their position or voluntarily amend filings. For the DGT, it serves as an entry point for oversight before advancing to tax audit procedures.

Role in State Revenue

The significance of SP2DK became more evident when Sri Mulyani resumed her role as Minister of Finance in 2016. As part of the government’s strategy to intensify state revenue, SP2DK was strengthened as a key supervisory instrument. According to the Annual Report of the DGT, SP2DK contributed IDR 122.86 trillion in 2018 and IDR 122.04 trillion in 2019. These figures demonstrate that SP2DK is not merely a clarification tool, it has a tangible impact on state revenue.

Implementation Challenges

Although designed as a clarification tool, SP2DK’s implementation in practice is not always seamless. Many taxpayers still struggle to distinguish it from tax assessment letters, leading to the perception of “hidden bills”. Legally, however, SP2DK is not a tax assessment, it functions as an initial communication channel between the tax authority and taxpayers.

This issue has received significant attention from the government. In 2023, Minister of Finance, Sri Mulyani, requested the DGT to improve both the wording and delivery of SP2DK to enhance clarity. In response, the agency redesigned the letter and strengthened the transparency of the data provided, aiming to minimize misunderstandings between the tax authority and taxpayers.

Mechanism

The regulation outlines the steps to be taken, identifying data inconsistencies, issuance of SP2DK, and follow ups on Taxpayers’ explanations. Taxpayers are given a designated period to respond. If their explanations are deemed sufficient, the process concludes. However, if the responses are inadequate, the DGT may escalate the process to tax audit.

This mechanism emphasizes that SP2DK is not an end point, but part of a tiered supervision process. It provides an early opportunity for clarification for taxpayers while establishing a stronger foundation for the DGT before moving to another stages.

Amid the leadership changes within the Ministry of Finance, SP2DK mechanism continues to operate in accordance with existing regulations. Looking ahead, the mechanism is expected to solidify its role as an effective, transparent, and accessible clarification instrument as it holds the potential to strengthen compliance oversight and support the sustainability of state revenue within the self-assessment system. (Shintya)