On 13 October 2026, the Indonesian Government unveiled a package of regulatory simplifications aimed at easing the settlement of tax obligations for individual and corporate taxpayers. The new measures, issued through a Minister of Finance Regulation (PMK), reduce administrative requirements for tax return amendments, installment payments, and tax refund applications. The policy responds to feedback from business associations and tax practitioners who highlighted the complexity and time-consuming nature of existing procedures. The changes are effective immediately and apply to all tax types administered by the DJP, including Income Tax (PPh), Value Added Tax (VAT), and Luxury Goods Sales Tax (PPnBM).
Key Takeaways
- Streamlined Tax Return Amendments: Taxpayers can now submit amended returns (SPT Pembetulan) electronically without prior approval for certain categories of corrections, reducing processing time from weeks to days.
- Flexible Installment Arrangements: The regulation introduces more flexible installment payment options for tax debts, including longer tenors and reduced interest penalties for compliant taxpayers with temporary cash flow issues.
- Accelerated Tax Refunds: The criteria for low-risk taxpayers eligible for expedited VAT refunds have been expanded, with a target processing time of 30 days for qualified applicants.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement