Tax Consultants, Brace Yourselves! Reports Now Monthly, Not Annually

“Changes are scheduled for 2026. Instead of annually, tax consultants will be required to submit the reports periodically. The reports are due monthly,” said the Head of Licensing and Compliance forAppraisers, Actuaries and Other Financial Professions of the PPPK Lury Sofyan in the socialisation held by the Indonesian Tax Consultants Association (Ikatan Konsultan Pajak Indonesia/IKPI in Indonesian).

Lury elaborated that the shift from annual to monthly reporting will provide tax consultants with convenience in submitting their reports to the PPPK.

Lury also mentioned that the PPPK is set to prepare a new system to support the implementation of tax consultants' monthly reporting obligation.

“Due to our outdated system, we are striving to exercise timely reporting for our tax consultant colleagues across Indonesia,” stated Lury.

Lury further explained that the tax consultant report is a crucial instrument for the PPPK to understand how tax consultants perform their professional duties. This information is essential for formulating policies and mapping potential risks.

“Through the reports, we as regulators, can assess how tax consultants carry out their work. We can identify the challenges the tax consultants encounter and categorise them based on their risk levels—high, medium and low risk. We view this report as a means of communication between tax consultants and regulators,” Lury continued.

On another note, the obligation of tax consultants to submit the annual report is stipulated under Article 25 of MoF Reg. 111/2014 as amended by MoF Reg. 175/2022.

The annual report must include details related to the number and information on taxpayers who have received consulting services, a list of completed sustainable professional development activities (pengembangan profesional berkelanjutan/PPL in Indonesian) and a copy of the tax consultant’s valid association membership ID card.

The annual report is to be submitted electronically no later than April of the following tax year. For the 2024 tax year, tax consultants are required to submit their annual report through the webpage https://bit.ly/LTKP2024.

In addition to the information on on tax consultant reporting provisions, several other engaging news items are worth highlighting, including updates on the realisation of the annual tax return filing, available tax incentives for MSME taxpayers and calls for the government to restrict cash transactions.

Below is a full review of the tax articles.

Tax Consultant Exempt from PPL Realisation

Tax consultants who have just obtained their practice licence in 2024 remain required to submit the tax consultant annual report to the PPPK.

However, although the submission of the annual report is mandatory, tax consultants who obtained their practice licence in 2024 are not required to fulfil the Sustainable Professional Development Credit Unit (Satuan Kredit Pengembangan Profesional Berkelanjutan/SKPPL in Indonesian) requirements.

Thus, newly registered tax consultants in 2024 are not required to attach the list of completed Sustainable Professional Development (pengembangan profesional berkelanjutan/PPL in Indonesian) to their 2024 annual report.

Hundreds of Thousands of Taxpayers Exempt from Fines for Late Annual Tax Return Filing

As of 11 April 2025, at 23.59 WIB, the Directorate General of Taxes (DGT) had received 12.63 million 2024 annual tax returns from individual taxpayers.

Out of the total, approximately 630,000 individual taxpayers filed their Annual Tax Returns after the filing deadline on 31 March 2025. However, these taxpayers are not subject to administrative penalties due to the eleven-day relaxation after the deadline.

“The nullification of administrative penalties was applied by not issuing a notice of tax collection (surat tagihan pajak/STP in Indonesian)," the DGT announced in its official statement.

Cash Transactions Should Be Curtailed

Businessman Chairul Tanjung (CT) urged the government to limit the use of cash for transactions.

According to CT, restrictions on cash transactions could support efforts to boost tax revenues. CT noted that similar measures have already been implemented in India.

By restricting the use of physical currency, all transactions will be conducted through the financial system, allowing traceability and reducing opportunities for tax avoidance.

Taxpayers Eligible for an 11% Tax Rate

Corporate taxpayers that are no longer permitted to use the MSME final income tax scheme in fulfilling their tax obligations may continue to benefit from other facilities stipulated under Article 31E of the Income Tax Law.

By utilising the facilities under Article 31E of the Income Tax Law, corporate taxpayers with a turnover below IDR4.8 billion are entitled to a reduced corporate income tax rate, down from 22% to 11%.

“Resident corporate taxpayers with gross turnover of up to IDR50 billion obtain facilities in the form of a rate reduction by 50% (fifty per cent) of the rates referred to in Article 17 paragraph (1) subparagraph b and paragraph (2a) that are imposed on the Taxable Income of the fraction of gross turnover of up to IDR4.8 billion," reads Article 31E of the Income Tax Law.

Sole Proprietorships Not Eligible for IDR500 Million Turnover Relief

Sole proprietorships utilising the MSME final income tax scheme do not qualify for the turnover relief facility of IDR500 million.

Despite being incorporated by a single individual, a sole proprietorship is categorised as a corporate taxpayer rather than an individual taxpayer.

“Sole proprietorships are not included as taxpayers entitled to not be subject to income tax on the fraction of gross turnover of up to IDR500 million in one tax year," reads the Director General of Taxes Circular Letter No. SE-20/PJ/2022. (sap)