In appointing a tax proxy, the public often assumes that personal closeness or trust is the primary consideration. However, under tax regulations, the parameters are based purely on civil law calculations of the degree of kinship.
Citing an article published on the Directorate General of Taxes (DGT) website, there are provisions regarding the appointment of family members as tax proxies, including limits on the degree of kinship that are exempted from specific competency requirements.
This provision raises questions about why a biological sibling can be appointed as a tax proxy without having to meet specific competency qualifications, while an uncle or aunt does not receive a similar exemption. This difference is not determined by emotional closeness, but rather by their respective positions in the family tree.
The rules regarding this appointment are outlined in Minister of Finance Regulation Number 44 of 2026 concerning the Requirements to Become a Proxy in the Field of Taxation and the Procedures for Exercising Rights and Fulfilling the Obligations of Proxies in the Field of Taxation (PMK-44/2026). This regulation provides that family members who can be appointed as tax proxies include a husband, wife, and individuals with a blood relationship or a relationship by marriage (affinity) up to the second degree.
To understand the concept of the degree of family relationships, one can refer to the Indonesian Civil Code (KUHPerdata). Article 290 stipulates that blood relations are calculated based on the number of births, with each birth counted as one degree. Article 291 distinguishes between direct line and collateral line relationships, while Article 294 regulates the calculation of relationship degrees in a collateral line.
In the case of biological siblings, the calculation starts from the taxpayer going up to the parents as one degree, then down from the parents to the older or younger sibling as one degree. The total accumulation is two degrees.
On the other hand, the calculation for an uncle or aunt starts from the taxpayer to the parents as one degree, goes up to the grandparents as one degree, and then goes down to the uncle or aunt as one degree. This results in an accumulation of three degrees. Based on this family tree calculation, a sibling falls within the maximum limit of the second degree and is therefore eligible for the exemption, whereas an uncle is in the third degree, which exceeds the regulatory limit.
PMK-44/2026 covers not only blood relations but also relations by marriage (Affinity) up to the second degree. Affinity is a family relationship arising from marriage, such as parents-in-law representing the first degree of affinity and siblings-in-law representing the second degree. Meanwhile, the position of a husband or wife has its own norms in tax regulations, as they are specifically listed as a family category without needing a degree numbering.
Although family members up to the second degree are exempted from specific competency requirements, their appointment as a tax proxy must still follow applicable regulations. The appointment must use a special power of attorney accompanied by valid documents proving the family relationship, such as a copy of the family card (kartu keluarga) or an official statement letter.
Family members beyond the second degree can still serve as tax proxies, but their appointment must go through other proxy channels, such as an official tax consultant, by fulfilling all applicable qualification requirements.
Also Read:
Implications of Constitutional Court Ruling No. 341/PUU-XXIV/2026
Tax Brief PMK 55/2026: New Rules for Tax Consultants and Taxpayer Legal Representatives
Tax Brief: PMK No. 44/2026: New Standards for Taxpayers' Legal Representatives
Writer: Fiorentina Renata Trixie | Editor: Thomas Rizal
