In May 2025, the government issued Director General of Taxes Regulation Number PER-11/PJ/2025. This regulation outlines the procedures for reporting income tax, value-added tax (VAT), luxury goods sales tax, and stamp duty as part of implementing the Coretax administration system.
According to the recital, this regulation aims to provide legal certainty and administrative efficiency, improve public services, and align reporting procedures with updates in the Coretax system. Consequently, technical rules for filing income tax, VAT, luxury goods sales tax, and stamp duty returns have been adjusted.
This regulation comprises 147 articles across ten chapters, structured as follows:
- Chapter I: General Provisions
- Chapter II: Format, content, and filing procedures for monthly income tax returns
- Chapter III: Format, content, and filing procedures for monthly VAT returns
- Chapter IV: Format, content, and filing procedures for monthly stamp duty returns
- Chapter V: Format, content, and filing procedures for annual income tax returns
- Chapter VI: Format, content, and procedures for calculating and filing Article 25 income tax installments for banks, state-owned and region-owned enterprises, listed companies, and other taxpayers
- Chapter VII: Filing, receipt, and processing of tax returns
- Chapter VIII: Miscellaneous Provisions
- Chapter IX: Transitional Provisions
- Chapter X: Closing Provisions
PER-11/PJ/2025 seems to be an omnibus tax policy, repealing 25 previous tax rules and amending two others. It also serves as a derivative regulation of Minister of Finance Regulation Number 81 of 2024 on tax provisions related to the Coretax system.
Monthly Income Tax Return
PER-11/PJ/2025 introduces two main types of monthly income tax returns, including the Article 21/26 return and the unified return. The Article 21/26 return covers withholding on income paid to individuals for work, services, or activities. The unified return, on the other hand, is used to report withholding or collection of Article 22, 23, 4(2), and 15 income taxes.
Notably, withholding slips are not required if no income is paid. However, Article 21/26 withholding slips must still be issued in certain cases, such as:
- When income is paid but no tax is withheld because it falls below the non-taxable threshold
- When the tax withheld is 0% due to a tax exemption certificate
- When the income is covered by government-borne Article 21 incentives
- When other Article 21 incentives apply
- When Article 26 tax is zero under a tax treaty
Monthly VAT Return
While PER-11/PJ/2025 largely mirrors its predecessor (PER-11/PJ/2022), it introduces several important updates. One major change is the deadline for uploading e-invoices, which was previously due by the 15th of the following month after the invoice issuance, the new deadline is the 20th.
On top of that, invoices may be issued manually in hardcopy in cases of force majeure. Additionally, for the January to March 2025 tax periods, invoices missing certain required details will still be considered complete as long as they are uploaded to the e-invoice system.
Annual Corporate Income Tax Return
Starting with the 2025 fiscal year, both individuals and corporations must file annual tax returns via the Coretax application. For individuals, the old 1770SS, 1770S, and 1770 forms have been replaced with a main tax return form and several appendices:
- Appendix 1: Assets and liabilities at year-end, list of dependents, domestic net income from employment, and tax slips
- Appendix 2: Income subject to final tax, non-taxable income, and foreign net income
- Appendix 3: Financial reconciliation
- Appendix 4: Article 25 installment calculation and tax due for taxpayers and spouses
- Appendix 5: Fiscal loss carryforwards and income tax reductions
Similarly, for corporations, the annual income tax return also consists of a main tax return form and appendices. However, PER-11/PJ/2025 has expanded the number of appendices from six to fourteen. These include:
- Appendix 1: Financial reconciliation
- Appendix 2: List of ownership
- Appendix 3: List of income taxes withheld/collected by third parties
- Appendix 4: Income subject to final tax and non-taxable income
- Appendix 5: Goss turnover summary
- Appendix 6: Current-year income tax installment
- Appendix 7: Fiscal loss carryforward
- Appendix 8: Article 31E income tax incentive calculation
- Appendix 9: List of fiscal depreciation and amortization
- Appendix 10A: List of related-party transactions
- Appendix 10C: Transactions with tax haven jurisdictions
- Appendix 10D: Summary of master file and local file
- Appendix 11A: Details of certain expenses
- Appendix 11B: Deductible interest expense calculation
- Appendix 11C: Private foreign debt report
- Appendix 12A: Article 26 income tax calculation
- Appendix 12B: Reinvestment notification for permanent establishments
- Appendix 13A: List of capital investment incentives
- Appendix 13B: List of additional gross income deductions
- Appendix 13C: List of corporate income tax incentives
- Attachment 14: Use of surplus for facility and infrastructure development and procurement.
This concludes the summary of PER-11/PJ/2025. If you would like to learn more, Ideatax is here to help.
