REGULATION OF THE MINISTER OF FINANCE OF THE REPUBLIC OF INDONESIA NUMBER 111 OF 2025 ON TAXPAYER COMPLIANCE SUPERVISION

This regulation is enacted to further ensure fairness and legal certainty in the implementation of taxpayer compliance supervision; therefore, it is necessary to regulate the provisions on taxpayer compliance supervision through the issuance of a Minister of Finance Regulation on Taxpayer Compliance Supervision.

The following are the main provisions of Minister of Finance Regulation Number 111 of 2025:

Scope of Supervision

1. Supervision consists of:

· Supervision of registered taxpayers

· Supervision of unregistered taxpayers; and

· Area-based supervision

• Supervision is conducted on the following types of taxes: Income Tax, Value Added Tax (VAT), Luxury Goods Sales Tax, Stamp Duty, Land and Building Tax, Sales Tax, Carbon Tax, and other taxes administered by the Directorate General of Taxes (DGT) in accordance with prevailing laws and regulations.

Forms of Supervisory Activities

In the context of supervising registered taxpayers, the Directorate General of Taxes (DGT):

1. Issues a request letter for an explanation of data and/or information,
2. The taxpayer must submit a response within a maximum period of 14 days.
3. The taxpayer may extend the response submission period for a maximum of 7 days after the initial response deadline has expired.
4. If, based on the review, the taxpayer’s response is in accordance with the request for explanation of data and/or information, minutes of the implementation of the request for explanation of data and/or information shall be prepared.
5. If the taxpayer’s response is not in accordance, additional data and/or information is identified, or the taxpayer does not submit a response, the Directorate General of Taxes (DGT) may conduct discussions by inviting the taxpayer and/or perform a visit.
6. Based on the results of such discussions, minutes of the implementation of the request for explanation of data and/or information shall be prepared.

• The results of the activity of a request for explanation of data and/or information may include proposals for:
• closure of the request for explanation of data and/or information activity;
• official (ex officio) amendment of data;
• official (ex officio) deletion of the Taxpayer Identification Number (NPWP);
• official (ex officio) registration of a Taxable Entrepreneur (PKP);
• official (ex officio) revocation of Taxable Entrepreneur (PKP) status;
• official (ex officio) registration of Land and Building Tax objects;
• official (ex officio) amendment of Land and Building Tax object data;
• official (ex officio) revocation of the registration certificate of Land and Building Tax objects;
• official (ex officio) change of status;
• changes to tax service administration and/or administration of tax facilities received or owned by the taxpayer;
• revocation of Stamp Duty collector status;
• official (ex officio) correction or cancellation of legal products as regulated under the General Provisions and Tax Procedures Law;
• restriction or blocking of certain public services;
• valuation for tax purposes;
• implementation of observation activities and/or intelligence activities;
• tax audit; and/or
• preliminary evidence audit.

• Conducting the activity of issuing an advisory by issuing an advisory letter,
• The taxpayer must submit a response within a maximum period of 14 days.
• Based on the review of the response, or if the taxpayer does not submit a response, the Directorate General of Taxes (DGT) may conduct discussions by inviting the taxpayer, perform a visit, and/or carry out activities in accordance with the prevailing tax laws and regulations.
• The results of the issuance of an advisory may include proposals for:
• closure of the advisory activity;
• determination of the amount of tax installments for the current tax year to be self-paid by the taxpayer;
• official (ex officio) amendment of data;
• official (ex officio) deletion of the Taxpayer Identification Number (NPWP);
• official (ex officio) registration of a Taxable Entrepreneur (PKP);
• official (ex officio) registration of Land and Building Tax objects;
• official (ex officio) amendment of Land and Building Tax object data;
• official (ex officio) revocation of the registration certificate of Land and Building Tax objects;
• official (ex officio) change of status;
• changes to tax service administration and/or administration of tax facilities received or owned by the taxpayer;
• revocation of Stamp Duty collector status; and/or
• restriction or blocking of certain public services.

• Conducting warning activities by issuing a warning letter in the event that a Tax Return is not submitted within the deadline as stipulated under the prevailing tax laws and regulations, and in relation to the implementation of such tax laws and regulations.

Minister of Finance Regulation Number 111 of 2025 was enacted on 30 December 2025 and comes into force on 1 January 2026.

For Tax Service assistance, please contact:

            Rani Widianti

            T. (+6221) 2222-0200

            E. rani.widianti@shinewing.id

            Alvina Oktavia

            T. (+6221) 2222-0200

            E. alvina.oktavia@shinewing.id