On 31 August 2026, the Minister of Finance signed Keputusan Menteri Keuangan 40/MK/EF.2/2026, establishing the interest rate used to calculate administrative sanctions in the form of interest and interest compensation for the month of September 2026 (1 September 2026 to 30 September 2026). This rate is derived from the Bank Indonesia 7-Day Reverse Repo Rate (BI7DRR) as mandated by Article 9 of Law No. 6 of 1983 on General Provisions and Tax Procedures (KUP) and its amendments. The announced rate applies to all late tax payments, underpayments discovered during audits, and refunds owed to taxpayers where the state is liable for interest. Tax officials, corporate finance teams, and tax consultants must apply this rate when computing interest on tax debts, VAT refunds, and other fiscal receivables or payables arising during September.
Key Takeaways
- Uniform Rate for All Tax Types: A single monthly rate governs interest calculations for income tax, VAT, LGST, and other national taxes, eliminating confusion from multiple rates and ensuring consistent penalty assessments.
- Retroactive Application Risk: If the rate changes mid-month due to regulatory amendments, the new rate applies from the effective date of the amendment; taxpayers should monitor for supplementary decrees that could alter accrued interest.
- Compliance Action: Companies should update their tax accounting software with the September rate immediately to avoid miscalculations in tax provisioning, audit defense, and cash flow forecasting for the month.
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