Indonesia offers full penalty relief for overdue annual tax returns
Full relief applies to eligible returns filed by 31 December 2026. Taxpayers must apply, and their underlying tax liabilities remain payable.
Indonesian taxpayers who file overdue annual income tax returns for 2025 and earlier tax years between 8 October and 31 December 2026 can obtain 100 per cent relief from late-filing penalties, Director General of Taxes Bimo Wijayanto said on 28 October.
Speaking at a tax outreach event organised by Jakarta regional tax offices, Bimo said the level of relief declines for taxpayers who submit their returns later. The qualifying filing periods and reductions are:
- 8 October–31 December 2026: 100 per cent.
- 1 January–31 March 2027: 50 per cent.
- 1 April–30 June 2027: 25 per cent.
The measures form part of Finance Minister Regulation No. 71 of 2026, which took effect on 2 October 2026 and revises Regulation No. 118 of 2024. Technical provisions are set out in Director General of Taxes Decision No. KEP-239/PJ/2026.
Bimo stressed that relief requires an application and covers only unpaid administrative penalties, not the underlying tax owed. He also said other categories of penalties may carry different conditions and relief levels.
Applications for a reduction or cancellation of penalties may be submitted until 1 October 2028. Bimo said that deadline does not extend the filing, payment or other requirements applicable to each category.
