On 2 September 2026, the Directorate General of Taxes (DJP) issued Decision Letter KEP-185/PJ/2026, establishing special tax administration policies for taxpayers impacted by natural disasters occurring in East Nusa Tenggara Province during 2026. This regulation activates under the legal framework of Law No. 28 of 2007 concerning General Provisions and Tax Procedures (KUP Law), specifically Article 31 on tax administration relief for force majeure events. The policy aims to alleviate compliance burdens for individuals and businesses in designated disaster zones by providing automatic extensions for filing obligations, payment deadlines, and reducing penalties.
Key Takeaways
- Automatic Filing and Payment Extensions: Affected taxpayers receive automatic extensions for periodic tax returns (SPT Masa), annual tax returns (SPT Tahunan), and tax payment obligations without submitting a separate request. The extension period aligns with the disaster emergency status declared by regional authorities.
- Penalty Waivers and Interest Relief: Administrative sanctions under Article 17 and Article 18 of the KUP Law, including interest on underpayments (Article 19), are waived for the duration of the disaster period. Taxpayers must retain documentation proving operational disruption.
- Simplified Verification Procedures: The regulation simplifies tax audit and verification processes for disaster-affected entities, allowing self-declaration of losses and accelerated VAT refund processing for reconstruction-related procurement.
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