Article 21 Withholding Tax Incentives for 2026
The government anticipates that 2026 will remain a challenging year marked by heightened uncertainty. Ongoing geopolitical tensions, domestic security concerns, and Indonesia’s exposure to natural disasters continue to weigh on economic growth. ...
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A New Era of Taxpayer Compliance Monitoring
The close of 2025 marks a pivotal milestone for the Ministry of Finance, particularly the Directorate General of Taxes (DGT). In December 2025, the government issued Minister of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 111 of 2025 c...
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Annual Individual Income Tax Return Filing via Coretax
With the close of the 2025 fiscal year and the start of 2026, individual taxpayers are required to file annual income tax returns. This filing season is particularly significant, as starting from the 2025 fiscal year, all tax returns must be submitte...
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Tax Information Exchange on Cryptoassets
The Ministry of Finance has issued the Ministry of Finance Regulation (Peraturan Menteri Keuangan/PMK) Number 108 of 2025 concerning Procedures for Access to Financial Information for Tax Purposes. The regulation reinforces Indonesia’s framework for ...
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History’s Most Unthinkable Taxes and Their Impact
Throughout history, taxes have functioned not only as a means of raising state revenue but also as instruments of social regulation, moral enforcement, and political control. In many periods, unusual forms of taxation emerged in response to pressing ...
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Understanding Tax Crime Investigations
In its 2023 Annual Report, the Directorate General of Taxes (DGT) revealed that it had completed 89 investigation files, which were officially declared complete (P-21) by the public prosecutor. Additionally, the report noted that 308 case files had b...
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Tax as a Lifeline for Indonesia's Textile Industry
February 2025 may go down as a dark chapter in Indonesia's textile industry. One of Southeast Asia's largest textile factories, inaugurated by President Soeharto in 1966, met a tragic end in court.After a prolonged struggle, PT Sri Rejeki Isman—also ...
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DGT Grants Penalty Relief for Late Tax Return Submissions
The Indonesian government has once again provided penalty relief for taxpayers submitting their tax returns. This policy is outlined in the Decree of the Director General of Taxes Number KEP-79/PJ/2025, issued on March 25, 2025. The decree pertains t...
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Maximizing Danantara’s Tax Management
Daya Anagata Nusantara, more commonly known as Danantara, has recently become a familiar name. The government officially established the Investment Management Agency (Badan Pengelola Investasi / BPI), known as Danantara, under Law of the Republic of ...
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Administrative Relief Amid Coretax System Technical Issues
The Directorate General of Taxes (DGT) has been rolling out its new Coretax system, an updated tax administration information system, for over two months. Promoted as the most advanced system capable of integrating various business tax processes, its...
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Sealing as a Law Enforcement Measure in Tax Audits
In its recent annual report, the Directorate General of Taxes (DGT) highlighted a significant increase in the number of corporate and individual taxpayers audited in 2023. Out of 1,665,826 corporate taxpayers required to file a tax return, 40,513 wer...
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Taxpayer Rights and Obligations in Tax Audits: A Perspective on the Latest Provisions
Tax audits are a routine part of the business landscape. They are a natural outcome of the self-assessment system and serve as a check and balance mechanism for tax obligations (Rabiyah, 2015). The OECD defines a tax audit as an examination to ensure...
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PMK 15 of 2025: Updates to Tax Audit Provisions
On February 14, 2025, the Minister of Finance issued Regulation Number 15 of 2025 (PMK-15) to update Regulation Number 17/PMK.03/2013 (PMK-17). PMK-15 simplifies and reorganizes previous regulations on tax audits to provide legal certainty. Scop...
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Tax Update: Use of Other Values as the Tax Base
BackgroundAt the end of 2024, the Minister of Finance of the Republic of Indonesia issued the Minister of Finance Regulation (Peraturan Menteri Keuangan / PMK) Number 131 of 2024 addressing Value-Added Tax (VAT) treatment on imports of taxable goods,...
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