The tax policy established through the Director General of Taxes Decree Number KEP-55/PJ/2026 concerning Tax Policy in Relation to the Implementation of the Core Tax Administration System in the Context of the Submission of the Annual Income Tax Return for Individual Taxpayers, whether Indonesian citizens or foreign nationals for Fiscal Year 2025 represents a strategic step by the government in supporting the implementation of the Core Tax Administration System, particularly in the process of submitting the Annual Income Tax Return (SPT) for individual taxpayers for the 2025 fiscal year. This policy arises from the need to ensure that the ongoing transformation of the tax administration system can be properly followed by taxpayers, while also taking into account actual conditions in the field, including national holidays and collective leave that may affect the timeliness of tax reporting.

In its implementation, the Directorate General of Taxes provides relief in the form of the elimination of administrative sanctions for individual taxpayers, whether Indonesian citizens or foreign nationals who experience delays in submitting their Annual Tax Returns or in making payments of Article 29 Income Tax. This relief applies as long as the delay does not exceed one month after the stipulated due date. The policy covers not only delays in reporting but also delays in payment as well as underpayments of tax occurring in the context of extensions for the submission of Annual Tax Returns.

Furthermore, the elimination of administrative sanctions includes penalties in the form of fines and/or interest as stipulated under the prevailing tax laws and regulations. In practice, the Directorate General of Taxes will not issue Tax Collection Letters for such sanctions. Moreover, in cases where Tax Collection Letters have already been issued, the tax authority, through the Head of the Regional Office of the Directorate General of Taxes, is granted the authority to eliminate such sanctions ex officio. This reflects administrative flexibility provided by the government to maintain taxpayer compliance without imposing excessive burdens during the system transition period.

This policy also provides additional legal certainty for taxpayers, particularly with respect to their status as Certain Criteria Taxpayers. Delays in the submission of Annual Tax Returns that fall within the relief period will not serve as a basis for revoking such status or rejecting applications for its designation. In this way, the government seeks to preserve compliance incentives already held by taxpayers while ensuring that the relief policy does not result in disproportionate negative consequences.

Overall, this policy reflects an adaptive and responsive approach by the tax authority in addressing significant changes in the tax administration system. On one hand, the government continues to encourage taxpayer compliance through reporting and payment obligations, while on the other hand providing reasonable administrative leniency to accommodate transition challenges and external conditions affecting taxpayers’ ability to fulfill their obligations in a timely manner.

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Author:
Dewi Susanti