New Regulations on Returns, Withholding Receipts, Invoices and Coretax

First, PER-11/PJ/2025. This regulation is a follow-up to Article 465 letter o, letter p, letter q, letter r, letter s, letter t and letter x of MoF Reg. 81/2024 concerning Tax Provisions in the Context of the Implementation of the Coretax Administration System and Article 25 paragraph (6) of the Income Tax Law.

"It is necessary to establish a tax director general regarding the provisions for reporting income tax, value added tax (VAT), sales tax on luxury goods (STLGs) and stamp duty in the context of implementing the core tax administration system.

“It is necessary to enact a director general of taxes regulation concerning provisions on the filing of income tax, VAT, STLGs and stamp duty in the context of the implementation of the coretax administration system,” reads the considering section of PER-11/PJ/2025.

In further detail, PER-11/PJ/2025 provides for the form, contents and procedures for the administration as well as the format of various types of tax returns, including periodic income tax returns, periodic VAT returns, periodic stamp duty returns and annual income tax returns.

PER-11/PJ/2025 also sets out the mechanisms for calculating Article 25 Income Tax installments for banks, state-owned enterprises (Badan Usaha Milik Negara/BUMN in Indonesian), local-owned state enterprises (Badan Usaha Milik Daerah/BUMD in Indonesian), public-listed taxpayers and other taxpayers.

In addition, PER-11/PJ/2025 specifies the required information and documents to be attached to tax returns as well as the format and means of filing. Procedures for the filing, receipt and processing of tax returns as well as the mechanisms for notifying the extension of the Annual Tax Return are also regulated in PER-11/PJ/2025.

Next, PER-11/PJ/2025 establishes criteria for certain income tax taxpayers excluded from the obligation to file tax returns. These taxpayers include individual taxpayers whose income does not exceed the personal tax relief (penghasilan tidak kena pajak/PTKP in Indonesian) and individual taxpayers who do not engage in business activities or independent personal services.

Finally, PER-11/PJ/2025 also includes provisions on the calculation of the amount of Article 25 Income Tax installments in the current year in certain cases pursuant to Article 25 paragraph (6) of the Income Tax Law.

Second, PER-8/PJ/2025. This regulation has been issued due to the inadequacy of the technical provisions in the form of the director general regulations and director general decrees in fulfilling the administrative needs of the coretax system era. Consequently, the former director general regulations and the director general decrees must be replaced or repealed.

“... it is necessary to enact a Director General of Taxes Regulation concerning the provisions on the granting of certain tax administrative services in the context of the implementation of the core tax administration system,” reads the considering section of PER-8/PJ/2025.

PER-8/PJ/2025 specifically regulates 13 types of tax services provided through the coretax system.

In addition to these two main developments, several other engaging issues have drawn public attention over the past week.

These include the postponement of the deadline for uploading tax invoices, updates of the selection of candidates for the Supreme Court Justice for Taxation, proposals concerning wealth tax, judicial review of the requirements of the Tax Court’s attorneys and the Ministry of Finance’s commitment to intensify supervision of high-income taxpayers.

Below is a full review of the tax articles.

Delayed Tax Invoice Deadline

The Director General of Taxes Regulation Number PER-11/PJ/2025 also revises the deadline for uploading electronic tax invoices or e-faktur to the Directorate General of Taxes (DGT).

Article 44 paragraph (1) PER-11/PJ/2025 underscores that e-faktur must be uploaded to the DGT using the e-faktur module no later than the 20th of the following month after the date of e-faktur generation instead of the 15th of the following month as formerly stipulated under PER-03/PJ/2022 as amended by PER-11/PJ/2022.

“The e-Faktur referred to in Article 40 paragraph (2) must be uploaded to the Directorate General of Taxes using the e-Faktur module referred to in Article 40 paragraph (3) and obtain approval from the Directorate General of Taxes, no later than the 20th (twentieth) of the following month after the date of the preparation of e-Faktur,” reads Article 44 paragraph (1) of PER-11/PJ/2025.

7 Supreme Court Justices for Taxation Candidates Advance to Next Stage

The Judicial Commission (Komisi Yudisial/KY in Indonesian) has announced the names of supreme court justices (calon hakim agung/CHA in Indonesian) candidates declared to have passed the quality selection, including the state administrative supreme court justices for taxation.

Seven state administrative supreme court justices for taxation have passed the quality selection by the Judicial Commission. These justices are now eligible to proceed to the next stage: health and personality assessment.

“The decision on passing the quality selection is final and cannot be contested,” stated the Head of the Recruitment Division Hakim M. Taufiq HZ, during the Judicial Commission’s announcement.

Wealth Tax, When Will It Be Implemented?

The government has stated that it would not rush the implementation of a wealth tax.

Expert Staff to the Minister of Finance for Tax Compliance Yon Arsal explained that despite the government’s consideration of introducing a wealth tax, the implementation of such a policy in Indonesia remains subject to prolonged deliberation.

“The introduction of a new type of tax is far from simple. There are stages, such as research, public hearing and approval by the House of Representatives,” he claimed during a public forum.

Constitutional Court Rejects Lawsuit Against Taxpayers’ Attorney Requirements

The Constitutional Court (Mahkamah Konstitusi/MK in Indonesian) has dismissed all applications for judicial review submitted against Article 34 paragraph (2) subparagraph c of Law 14/2002 concerning the Tax Court. The article grants the minister of finance authority to set other conditions that must be satisfied for attorneys representing clients in the Tax Court.

The Constitutional Court ruled that the application for judicial review of the Tax Court Law submitted by Zico Leonard Djagardo Simanjuntak lacks legal merit in its entirety.

“The decision of the trial is to reject the applicant’s application in its entirety,” stated Chairperson of the Constitutional Court Suhartoyo in the pronouncement of the Constitutional Court Decision Number 25/PUU-XXIII/2025.

Tax Compliance of High-Wealth Individuals Under Close Scrutiny

The Directorate General of Taxes (DGT) continues to rigorously supervise tax compliance, with a particular focus on high-net worth individuals and those subject to the individual income tax bracket of 35%.

Yon Arsal elaborated the DGT, inter alia, supervises material compliance of these high-income people through filed annual tax returns. He pointed out that intensive monitoring of taxpayers is crucial to boost state revenues.

“We increase [tax revenues] from [taxpayers affected by tax bracket] 35% by monitoring. We monitor that the information reported by the taxpayers is accurate,” he stated. (sap)