The Directorate General of Taxes (DGT) under the Ministry of Finance is preparing a facility offering reductions or waivers of up to 100% in tax administrative penalties to help taxpayers settle their outstanding tax obligations. To encourage taxpayers to use the facility, the DGT has distributed data on potential beneficiaries from its headquarters to all local tax offices.
Director General of Taxes Bimo Wijayanto said all tax offices had received lists of taxpayers who could potentially benefit from the penalty reduction facility.
“The DGT has taken steps to ensure that all tax offices are ready with their respective lists. We have distributed the data from headquarters to local tax offices. We will see how things develop,” Bimo told reporters on Wednesday (October 14, 2026).
Bimo explained that the policy aims to help taxpayers fulfill outstanding tax obligations by easing administrative penalties. The DGT hopes the facility will encourage taxpayers to acknowledge and settle their unpaid tax liabilities.
“The main point is that we want to help achieve a balanced and fairer resolution,” he said.
According to Bimo, penalty reductions could also help taxpayers maintain their financial resilience. The policy is also expected to ensure fairer treatment for taxpayers willing to acknowledge and fulfill their tax obligations.
“Taxpayers will also be in a better position to maintain their cash resilience if they can take advantage of this facility. We also support fairer treatment for taxpayers who are willing to acknowledge their obligations,” Bimo added.
Penalty Reductions IDR 14.8 Trillion
The DGT estimates that potential reductions in administrative penalties under the program could reach IDR 14.8 trillion. This estimate covers tax supervision, audits, tax collection, and the use of new data sources.
Tax supervision accounts for potential penalty reductions of IDR 5.7 trillion, associated with principal tax liabilities of IDR 12 trillion. Meanwhile, tax audits could generate penalty reductions of IDR 2.9 trillion, with principal tax liabilities amounting to IDR 13 trillion.
For tax collection, potential administrative penalty reductions stand at IDR 3.7 trillion, with principal tax liabilities of IDR 9.6 trillion. The use of new data sources is estimated to generate a further IDR 2.5 trillion in potential penalty reductions, associated with principal tax liabilities of IDR 5.6 trillion.
Bimo stressed that these figures remain estimates and do not represent actual penalty reductions. Realization will depend on whether taxpayers decide to use the available facility.
Taxpayers may consider applying for the facility in either 2026 or 2027, subject to the applicable requirements and deadlines.
“This means there will certainly be deviations between the estimates and actual implementation. It depends on taxpayers’ risk appetite and whether they want to apply for the reduction this year or next year, as the facility remains available through 2027,” Bimo said.
Schedule Through 2027
The policy allowing reductions or waivers of up to 100% in tax administrative penalties is stipulated in Director General of Taxes Decree No. KEP-239/PJ/2026. The regulation took effect on October 8, 2026.
The facility covers several types of tax administrative penalties, including fines for late filing of tax returns, interest charges for late tax payments, and penalties arising from tax audits and collection activities.
The reduction percentage depends on the applicable scheme and when taxpayers fulfill their tax obligations.
Under certain schemes, a 100% penalty reduction applies if tax returns are filed or amended and the corresponding taxes are paid between October 8 and December 31, 2026.
The reduction rate will decrease to 50% for the period from January 1 to March 31, 2027. A 25% reduction will then apply from April 1 to June 30, 2027.
Taxpayers should review the applicable deadlines and requirements to ensure they can take advantage of the penalty reduction or waiver facility in accordance with DGT regulations.
Also Read:
Understanding Tax Collection: Procedures, Penalties, and Resolution
Tax Brief PMK 71/2026: Changes to Tax Objection Procedures and Sanctions
Tax Consultants Risk Losing Licenses for Offering Incentives to Tax Officials
Editor: Thomas Rizal
