Based on PP 55 of 2022 Article 19 paragraph (1) Uncollectible receivables that can be charged as expenses in calculating taxable income must meet the following requirements: a. has been charged as an expense in the commercial income statement; b. Taxpayers must submit a list of receivables that are clearly uncollectible to the Directorate General of Taxes; and c. for receivables that are clearly uncollectible, the collection case has been submitted to the District Court or government agency that handles State receivables, there is a written agreement regarding the write-off of receivables/debt discharge between the creditor and the debtor concerned, has been published in a general or special issue, or there is an acknowledgment from the debtor that his debt has been written off for a certain amount of debt.
The requirements referred to in paragraph (1) letter c do not apply to receivables that are clearly uncollectible to small debtors and other small debtors.
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