MINISTER OF FINANCE REGULATION OF THE REPUBLIC OF INDONESIA NUMBER 71 OF 2026 CONCERNING AMENDMENTS TO MINISTER OF FINANCE REGULATION NUMBER 118 OF 2024 ON PROCEDURES FOR CORRECTION, OBJECTION, REDUCTION, WAIVER, AND CANCELLATION IN THE FIELD OF TAXATION

This regulation was issued to ensure legal certainty, provide convenience for Taxpayers, and enhance the effectiveness and efficiency of correction, objection, reduction, waiver, and cancellation procedures in the taxation sector. Minister of Finance Regulation Number 71 of 2026 amends several provisions within Minister of Finance Regulation Number 118 of 2024, specifically Articles 14, 16, 23, and 32, as well as Appendix C, and introduces new Articles 21A and 27A.

The following are the refinements to the provisions in Minister of Finance Regulation Number 71 of 2026:

1. PROCEDURES FOR SUBMITTING AND RESOLVING OBJECTIONS

1. There is an amendment to Article 14 paragraph (2) letter h, which stipulates that, in conducting an objection review, the DGT may “exchange information for tax purposes with the tax authorities of partner countries or partner jurisdictions..”

• Article 16 paragraph (5), which previously stipulated that the response letter to the objection review results must be submitted no later than 10 working days from the date the SPUH was sent, has been amended to “10 working days after the date the SPUH was sent.” This change does not affect the submission deadline but clarifies the starting point for calculating the time limit.

1. PROCEDURES FOR APPLICATION AND SETTLEMENT OF REDUCTIONS, WAIVERS, OR CANCELLATIONS

1. The addition of Article 21A, which stipulates that administrative sanctions, including administrative Land and Building Tax fines, eligible for reduction or waiver include:
2. administrative sanctions imposed under a Tax Assessment Letter;
3. administrative sanctions imposed under a Tax Collection Letter related to the issuance of a Tax Assessment Letter, except for administrative sanctions imposed under a Tax Collection Letter in respect of the 30% penalty for the rejection of an objection (Article 25 paragraph (9) of the General Tax Provisions and Procedures Law), the 60% penalty for the rejection of an appeal or partial granting of an appeal (Article 27 paragraph (5d) of the General Tax Provisions and Procedures Law), and the 60% penalty arising from an increase in tax payable during the Judicial Review process (Article 27 paragraph (5f) of the General Tax Provisions and Procedures Law);
4. administrative sanctions imposed under a Tax Collection Letter other than those related to the issuance of a Tax Assessment Letter as referred to in letter b;
5. administrative Land and Building Tax fines imposed under a Land and Building Tax Assessment Letter; or
6. administrative Land and Building Tax fines imposed under a Land and Building Tax Collection Letter.

• One of the requirements for applying for a reduction or waiver of administrative sanctions and a reduction of administrative fines for Land and Building Tax is that the Taxpayer must have settled the unpaid or underpaid tax amount, the principal amount or difference in the principal amount of Land and Building Tax, or the unpaid or underpaid Land and Building Tax amount. Article 23 paragraphs (6) and (7) amend the payment allocation mechanism as follows:
• Payments made toward a Tax Assessment Letter, Tax Collection Letter, Land and Building Tax Assessment Letter, or Land and Building Tax Collection Letter shall first be allocated to the unpaid or underpaid tax amount, the principal amount or difference in the principal amount of Land and Building Tax, or the unpaid or underpaid Land and Building Tax amount.
• If the payment referred to in paragraph (6) exceeds the unpaid or underpaid tax amount, the principal amount or difference in the principal amount of Land and Building Tax, or the unpaid or underpaid Land and Building Tax amount, the excess payment shall be allocated to administrative sanctions or administrative Land and Building Tax fines.

• The addition of Article 27A stipulates that, in order to support the national economy, the Director General of Taxes may reduce or waive administrative sanctions or reduce administrative fines for Land and Building Tax imposed under a Tax Assessment Letter, Land and Building Tax Assessment Letter, Tax Collection Letter, or Land and Building Tax Collection Letter, provided that the applicable requirements are met and the application is submitted no later than two years from the effective date of this Minister of Finance Regulation.

• Article 32 paragraph (2) letter d has been refined to correct the numbering of sub-items, which was previously inconsistent in the text

1. Appendix C

Changes have been made to Appendix C of Minister of Finance Regulation Number 118 of 2024, concerning sample document formats and calculations for reductions, waivers, and cancellations, to align with the payment allocation mechanism stipulated in Article 23 paragraphs (6) and (7).

Minister of Finance Regulation Number 71 of 2026 was enacted on 29 September 2026 and comes into force as of 2 October 2026 upon promulgation.

For Tax Service assistance, please contact:

  Rani Widianti

  T. (+6221) 2222-0200

  E. [email protected]

  Alvina Oktavia

  T. (+6221) 2222-0200

  E. [email protected]