Taxpayers who participated in the Voluntary Disclosure Program (PPS) and still possess undisclosed or under-disclosed assets have the opportunity to obtain a tax administrative penalty reduction of up to 100%, provided they meet the applicable requirements.
This facility is provided through the Administrative Penalty Reduction or Elimination Program (PSA), as stipulated in the Decree of the Director General of Taxes Number KEP-239/PJ/2026.
According to a guidebook published by the Directorate General of Taxes (DGT) of the Ministry of Finance, this policy targets administrative penalties listed in tax assessment letters resulting from audits of undisclosed or under-disclosed assets belonging to PPS participants, also known as Tax Amnesty Volume II.
DGT explains that KEP-239/PJ/2026 sets specific criteria, primarily on the issuance period of the tax assessment letter and the deadline for paying the principal tax. The types of penalties eligible for this facility include interest penalties as regulated in Article 13 paragraph (2) and surcharge penalty based on Article 15 paragraph (2) of the Law on General Provisions and Procedures of Taxation (UU KUP).
The amount of the penalty reduction is determined by the timing of the principal tax payment after the assessment letter is issued. The sooner the taxpayer pays off the principal tax, the higher the percentage of penalty reduction they can receive.
Under the DGT guidelines, PPS participants may qualify for three categories of penalty reduction, depending on the payment date.
First, taxpayers are entitled to a 100% penalty reduction if they settle the principal tax no later than one month after the issuance date of the tax underpayment assessment letter (SKPKB) related to the PPS, or the additional tax underpayment assessment letter (SKPKBT).
Second, a 50% reduction is granted if the principal tax payment is made more than one month, but no later than two months, after the assessment letter is issued.
Third, taxpayers can receive a 25% penalty reduction if they settle the principal tax more than two months after the assessment letter's issuance date, provided they still meet the program's deadlines.
The PSA facility does not apply automatically to all PPS participants. Taxpayers must ensure that their tax assessment letters meet the specified issuance period criteria. Under the DGT's guidebook, the assessment letters eligible for this facility must be issued between October 8, 2026, and December 31, 2027.
In addition to meeting the assessment letter issuance provisions, taxpayers are also required to settle the principal tax that serves as the basis for the penalty no later than December 31, 2027. Given this deadline, PPS participants must calculate the assessment letter issuance date and their payment schedule to apply the penalty reduction percentage under the provisions.
It is important to understand that the PSA facility only provides relief for tax administrative penalties that meet the requirements. The policy does not eliminate the taxpayer's obligation to pay the outstanding principal tax.
DGT also emphasizes that the PSA is not a new tax amnesty program. This program is aimed at encouraging taxpayer compliance while providing relief for specific administrative penalties.
PPS participants must verify that the imposed penalties and their tax assessment letters meet the program's criteria and settle the principal tax within the designated timeframe. Accuracy in meeting these requirements determines the taxpayer's eligibility to receive an administrative penalty reduction through the PSA program.
To mitigate the risk of penalties and ensure the utilization of the PSA facility proceeds according to the regulations, The Ideatax team is ready to assist with the process of fulfilling your tax obligations.
Also Read:
Guide to Applying for Tax Penalty Reduction or Cancellation Through Coretax DGT
DGT Provides Tax Penalty Reductions Through the PSA Program
DGT Prepares Up to 100% Tax Penalty Reduction
Writer: Fiorentina Renata Trixie | Editor: Thomas Rizal
