DECREE OF THE DIRECTOR GENERAL OF TAXES NUMBER KEP-239/PJ/2026 CONCERNING TAX POLICY REGARDING THE REDUCTION OR WAIVER OF ADMINISTRATIVE SANCTIONS BY THE DIRECTOR GENERAL OF TAXES

This regulation is issued to improve Taxpayer compliance, support the national economy, and implement tax policies concerning the Reduction or Waiver of Administrative Sanctions, as referred to in Article 27A of Minister of Finance Regulation Number 118 of 2024, as amended by Minister of Finance Regulation Number 71 of 2026 concerning Procedures for Correction, Objection, Reduction, Waiver, and Cancellation in the Taxation Sector.

The following are the key provisions of KEP-239/PJ/2026:

1. Types of Administrative Sanctions Eligible for Reduction or Waiver

Taxpayers are eligible for a reduction or waiver of administrative sanctions in respect of:

1. administrative sanctions for the late filing of Annual Income Tax Returns for Fiscal Years up to 2025 and/or Monthly Tax Returns up to the September 2026 Tax Period, with an underpayment status, provided that the returns are filed between 8 October 2026 and 30 June 2027;

• administrative sanctions arising from voluntary amendments to Annual Income Tax Returns for Fiscal Years up to 2025 and/or Monthly Tax Returns up to the September 2026 Tax Period, with an underpayment status, provided that the amended returns are filed and the tax is paid or remitted between 8 October 2026 and 30 June 2027;

• administrative sanctions for late payment or remittance of tax payable under Annual Income Tax Returns for Fiscal Years up to 2025 and/or Monthly Tax Returns up to the September 2026 Tax Period, provided that the returns are filed and the tax is paid or remitted between 8 October 2026 and 30 June 2027;

• administrative sanctions imposed under Tax Assessment Letters, Land and Building Tax Assessment Letters, or Tax Collection Letter, including administrative Land and Building Tax fines, arising from tax audits findings and issued between 8 October 2026 and 30 June 2027, provided that the principal tax payable is paid or remitted no later than 30 June 2027;

• administrative sanctions imposed under Tax Assessment Letters, Land and Building Tax Assessment Letters, Tax Collection Letter, or Land and Building Tax Collection Letters, including administrative Land and Building Tax fines, issued before 8 October 2026, provided that the principal tax payable, tax debt, and/or part of the related administrative sanctions is paid no later than 30 June 2027;

• administrative sanctions imposed under Tax Collection Letter or Land and Building Tax Collection Letters, including administrative Land and Building Tax fines, issued between 8 October 2026 and 30 June 2027, provided that the principal tax payable, tax debt, and/or part of the related administrative sanctions is paid no later than 30 June 2027; and

• administrative sanctions imposed under Tax Assessment Letters arising from tax audits findings concerning assets that were not or were inadequately disclosed under the Voluntary Disclosure Program, issued between 8 October 2026 and 31 December 2027, provided that the principal tax payable is paid or remitted no later than 31 December 2027.

1. Application Submission Provisions

Taxpayers must submit an application for a reduction or waiver of administrative sanctions to the Director General of Taxes no later than 1 October 2028.

The application must comply with the requirements stipulated in Articles 23 and 24 of Minister of Finance Regulation Number 118 of 2024, as amended by Minister of Finance Regulation Number 71 of 2026.

1. Requirements and Supporting Documents

To submit an application, Taxpayers must meet the following requirements:

1. Taxpayers must not have filed a lawsuit and/or pursued any other legal remedies, as evidenced by a statement letter affixed with a stamp duty and signed by the individual Taxpayer or the representative of the corporate Taxpayer;

• If a lawsuit and/or other legal remedies have already been filed or pursued, Taxpayers must attach an application to withdraw it;

• Taxpayers must submit a statement letter affixed with a stamp duty declaring that the administrative sanctions arose from an oversight or were not caused by the taxpayer’s fault; and

• A reduction or waiver may only be granted for administrative sanctions that have not yet been paid or settled by the Taxpayer.

KEP-239/PJ/2026 came into effect on 8 October 2026, the date it was issued.

For Tax Service assistance, please contact:

  Rani Widianti

  T. (+6221) 2222-0200

  E. [email protected]

  Alvina Oktavia

  T. (+6221) 2222-0200

  E. [email protected]