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Good News! Government Relaxes Tax Sanctions to Support Taxpayer Compliance

The Directorate General of Taxes (DGT) has issued Director General of Taxes Decree Number 67/PJ/2025 on February 27, 2025, which provides a policy of eliminating administrative sanctions for taxpayers who experience delays in fulfilling their tax obligations. This policy covers delays in payment, deposit of tax payable, and submission of tax returns as part of the implementation of the Core Tax system currently underway in Indonesia. With this policy, the government hopes to provide relief for taxpayers while increasing the level of compliance in timely tax reporting.

DGT emphasized that the policy of eliminating administrative sanctions applies to various types of taxes that are often a concern for businesses and individuals. In this policy, taxpayers who previously experienced delays in submitting tax returns or tax payments will benefit in the form of elimination of fines that have been a financial burden. This step is expected to provide leeway in the transition period of implementing the Core Tax system which aims to improve the efficiency and transparency of tax administration in Indonesia.

Types of Taxes that Receive Administrative Sanction Elimination

In this latest policy, DGT ensures that certain types of taxes will get the elimination of administrative sanctions for the period December 2024 to March 2025. Some types of taxes included in this relief scheme include Periodic Income Tax Return Article 21 and/or Article 26, Periodic Unification Tax Return, and Income Tax (PPh) Article 4 paragraph (2) related to the transfer of rights to land and/or buildings. In addition, delays in tax reporting on certain business income subject to Income Tax Article 4 paragraph (2), Income Tax Article 25, VAT Periodic Tax Return, and Stamp Duty Periodic Tax Return are also included in the category that gets this relief.

Each type of tax that gets relief has a certain time limit that must be considered by taxpayers so that they can still enjoy this sanction removal facility. For example, late submission of VAT Periodic Tax Return for January 2025 is given a deadline until March 10, 2025, while for Stamp Duty Periodic Tax Return for December 2024 is given a deadline until January 31, 2025. Therefore, DGT urges taxpayers to immediately adjust their reporting so as not to lose the opportunity to benefit from this policy.

Impact of this Policy on Taxpayers and National Tax Compliance

With the implementation of this policy, DGT emphasized that it will not issue Tax Collection Letter (STP) for taxpayers who experience delays within a predetermined period. For taxpayers who have received STP before this decision is enacted, DGT will also carry out the elimination of sanctions as a form of tax administration relaxation. This provides an opportunity for taxpayers to reorganize their obligations without the pressure of burdensome sanctions.

This policy is expected to increase taxpayers’ awareness and compliance in reporting and paying their tax obligations in a more orderly manner. In addition, this step also reflects the government’s commitment in creating a more friendly and transparent tax ecosystem for the community and the business world. Therefore, DGT invites all taxpayers to continue to carry out tax obligations according to the predetermined schedule to avoid potential administrative sanctions in the future.

Disclaimer

The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: Facebook, Instagram, Linkedin, and Twitter.

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