Politics · Indonesia · 1 hr ago
Indonesia Offers Tax Penalty Relief of Up to 100% for Eligible Taxpayers
Indonesia’s Directorate General of Taxes is offering reductions or waivers of administrative tax penalties to eligible taxpayers who have unpaid obligations.
The relief covers several cases, including late tax returns, amended returns and late payments.
For certain overdue returns, penalties are waived in full if the return is filed by December 31, 2026, and reduced by 50% or 25% for filings in the first or second quarter of 2027.
The tax owed itself is not forgiven; taxpayers must still pay the principal debt.
Applicants must meet conditions, including not pursuing a legal challenge, or withdrawing one already filed, and saying the penalty arose from an oversight rather than their fault.
Applications must be submitted by October 1, 2028, and the authority will apply payments first to the principal tax debt.
The relief took effect on October 8, 2026, with the timing and amount for other penalties set by separate rules.
Indonesia’s tax authority is offering eligible taxpayers reductions or waivers of administrative tax penalties of up to 100%.
The relief covers several types of tax penalties, including those for late tax returns, late payments and certain tax assessments.
For late returns covered by the policy, the full penalty is waived if the return is filed from 8 October to 31 December 2026.
Taxpayers must apply by 1 October 2028 and meet conditions, including that the penalties remain unpaid.
The tax authority says the policy is not a tax amnesty, and taxpayers must still pay their principal tax debt.
- Who
- Indonesia’s Directorate General of Taxes, under the Ministry of Finance, is offering the relief to eligible taxpayers.
- What
- Taxpayers can receive reductions or waivers of administrative penalties of up to 100%.
- When
- The policy took effect on 8 October 2026; deadlines and relief levels vary by penalty type.
- Where
- Indonesia.
- Why
- The policy allows payments to be used first to settle principal tax debt while giving eligible taxpayers relief from administrative penalties.
This story does not have two clearly opposing sides.
The policy took effect, and the Director General of Taxes signed the relevant decision.
Eligible late returns filed during this period receive a 100% penalty waiver.
Eligible late returns filed during this period receive a 50% penalty reduction.
Eligible late returns filed during this period receive a 25% penalty reduction.
Deadline for taxpayers to apply for the facility.
- Maximum relief
- 100% reduction or waiver of administrative penalties
- Decision
- KEP-239/PJ/2026
- Late-return relief period
- Returns for annual income tax through tax year 2025 and monthly tax periods through September 2026
- Full waiver filing window
- 8 October–31 December 2026
- Application deadline
- 1 October 2028
What people are saying
Through this adjustment, taxpayer payments can first be used to settle principal tax debt so taxpayers have the opportunity to settle their principal obligations while also taking advantage of the facility for reducing or waiving administrative penalties in accordance with applicable provisions.