Annual Tax Return Deadline Fixed: Note Coretax Penalty Nullification

Tirta, Head of the Tax Services Affairs Subdirectorate of the DGT claimed that the filing deadline for the annual tax return is stipulated under the General Provisions and Tax Procedures (GPTP) Law. For individual taxpayers, the filing deadline for annual tax returns is three months after the end of the tax year or 31 March 2025.

“Pursuant to existing provisions, the filing deadline for the annual tax return is certain. Although the D-day coincides with a national holiday or joint leave, the filing deadline remains unchanged,” he remarked.

Tirta also pointed out two major religious holidays leading up to the filing deadline of the 2024 individual annual tax return, namely Nyepi on 28 March 2025 and Eid al-Fitr on 31 March 2025.

Due to the accumulated joint leave and holidays, tax offices will be closed from 28 February to 31 March 2025. The tax return filing deadline, however, continues to refer to the GPTP Law to enable taxpayers to implement their obligations online.

He also urged individual taxpayers to file their 2024 annual tax returns early to avoid the risk of system congestion as DJP Online frequently experiences peak traffic as the deadline is fast approaching.

“It’s best to file early rather than wait until the last minute,” advised Tirta.

Further, shifting focus to the coretax system. Director General of Taxes Suryo Utomo has approved the nullification of administrative penalties in terms of delays in the payment and filing of taxes due to the implementation of the coretax system. The nullification of administrative penalties is granted through the Director General of Taxes Decree No. KEP-67/PJ/2025.

However, there are key aspects to note. In line with the issuance of the decree, taxpayers are required to take into account the taxable periods eligible for penalty nullification under KEP-67/PJ/2025. In addition, they should consider the relaxation of the tax payment and filing deadline under KEP-67/PJ/2025.

The Second Dictum of KEP-67/PJ/2025 specifies delays in the payment and/or tax remittance qualified for penalty nullification. The Second Dictum also provides for the extended deadlines for tax payment and/or remittance as determined by the Director General of Taxes.

Based on this summary, for instance, a delay in VAT payment for the January 2025 taxable period will not incur penalties insofar as remitted by 10 March 2025. In addition, it is evident that the nullification for delays in the payment of taxes does not apply to taxable periods beyond January 2025.

Further, the Third Dictum of KEP-67/PJ/2025 details delays in tax filing or tax return filing eligible for penalty nullification. Through this dictum, the Director General of Taxes determines the extended deadline for tax filing or tax return. To simplify, the following is a summary.

According to this summary, for example, the delay in the filing of the periodic VAT return for the January 2025 taxable period will not be subject to penalties insofar as filed by 10 March 2025. In addition, it is evident that the penalty nullification is applicable up to the March 2025 taxable period.

Please note the penalty nullification is conducted by refraining from issuing a notice of tax collection (Surat Tagihan Pajak/STP in Indonesian). However, in the case of a delay for which a notice of tax collection has been issued, the Head of the Regional Office (Kantor Wilayah/Kanwil in Indonesian) of the Directorate General of Taxes (DGT) will nullify the penalties ex officio.

Beyond these two key topics, several topics are in the limelight throughout this week.

These engaging topics include an appeal concerning annual tax return, shortened closing conference, ongoing discussions on the establishment of the National Revenue Agency (Badan Penerimaan Negara/BPN in Indonesian) and updates on the latest audit provisions.

Below is a full review of this week’s tax articles.

DJP Online Login Takes Longer, Avoid Procrastinating on Tax Return Filing

The DGT reminds taxpayers about the implementation of the Multi-Factor Authentication (MFA) feature in the DJP Online application login process.

As stated by the Head of the Subdirectorate of Tax Service Affairs of the DGT Tirta, the MFA feature has been introduced to enhance the security of taxpayer data. Taxpayers must now enter a verification code before logging in to the DJP Online account.

“Yes, an additional step has been added starting this year. Tax Friends, be neither confused nor worried, this is merely part of the process that we have to go through, it simply takes a little longer,” he explained.

Shortened Closing Conference

The period for the closing conference (Pembahasan Akhir Hasil Pemeriksaan/PAHP in Indonesian) and the reporting thereof has now been shortened to a maximum of 30 days. The new provisions on the closing conference and reporting period are outlined in the Minister of Finance Regulation (MoF Reg.) 15/2025.

A closing conference refers to the discussion stage between a taxpayer and tax auditors concerning audit findings. The results of the closing conference are documented in the official report of closing conference, detailing corrections to the principal amount of tax payable and the calculation of administrative penalties and/or fines.

The closing conference and reporting period...is a maximum of 30 business days from the date the Notice of Tax Audit Findings (Surat Pemberitahuan Hasil Pemeriksaan/SPHP in Indonesian) is submitted to the taxpayer...until the date of the Tax Audit Report,” reads Article 6 paragraph (3) of MoF Reg. 15/2025.

Government Pushes Forward with the Plan to Establish the State Revenue Agency (BPN)

The government remains committed to establishing the state revenue agency (Badan Penerimaan Negara/BPN in Indonesian) to boost Indonesia’s tax revenue ratio to 23% of GDP in line with President Prabowo Subianto's 2024 campaign promise. The discourse is outlined in the 2025-2029 National Medium-Term Development Plan (Rancangan Pembangunan Jangka Menengah Nasional/RPJMN) under Presidential Regulation 12/2025.

The establishment of a state revenue agency is deemed crucial to increasing both tax revenues and non-tax state revenues (Penerimaan Negara Bukan Pajak/PNBP in Indonesian).

“Indonesia’s low state revenues stem from an administration gap and policy gap, necessitating institutional governance transformation as an enabler for optimising state revenues,” the government states in the 2025-2029 RPJMN.

Period for the Fulfillment of the Request for Audit Documents

As stipulated under MoF Reg. 15/2025, a taxpayer being audited must comply with the request letter for loans of books of account, records and/or documents submitted by the tax auditors within a period of one month.

Should the books of account, records and/or documents requested by the tax auditors based on the request letter be submitted by the taxpayer after a period of one month, the books of account, records and/or documents are deemed not to have been provided at the time of the audit.

“In the event that the books of account, records and/or documents, including electronic data borrowed or requested in the request letter .. are submitted by the taxpayer after the period..., they are deemed not to have been provided at the time of the audit,” reads Article 12 paragraph (4).

DGT Authorised to Conduct Assessment in Audits

The DGT is authorised to conduct assessments for tax purposes when implementing audits.

Referring to Article 26 of the Minister of Finance Regulation (MoF Reg.) 15/2025, the valuation for tax purposes is conducted pursuant to statutory provisions in the field of taxation.

“In the implementation of audit, an assessment for tax purposes may be conducted pursuant to statutory provisions in the field of taxation,” reads Article 26 of the MoF Reg. 15/2025. (Daisy Anita/sap)