Indonesia introduces tax penalty waivers tied to filing and payment deadlines
The relief covers eligible unpaid administrative penalties, with applications due by 1 October 2028.
Indonesia’s Directorate General of Taxes (DJP) is offering eligible taxpayers administrative penalty reductions of up to 100 per cent under a policy effective from 8 October 2026. Decision KEP-239/PJ/2026, signed by tax chief Bimo Wijayanto, sets different relief levels according to the penalty involved and when taxpayers fulfil the requirements.
The DJP said the measure is intended to encourage tax compliance and support Indonesia’s economy. Its scope includes penalties for overdue annual income tax returns covering 2025 and earlier years, and periodic returns with tax outstanding for periods through September 2026. Voluntary corrections, delayed tax payments, tax assessments, collection notices and administrative land and building tax fines are also covered.
For late returns, voluntary corrections and delayed payments, the timing of the required action determines the reduction:
- 8 October–31 December 2026: 100 per cent.
- 1 January–31 March 2027: 50 per cent.
- 1 April–30 June 2027: 25 per cent.
Penalties attached to tax collection notices and audit assessments can be waived in full when the underlying tax is settled by 31 December 2026 or within one month of the notice’s issuance. Settlement within one to two months brings a 50 per cent reduction, while payment after two months brings 25 per cent relief, subject to a 30 June 2027 cut-off.
Late tax invoice penalties qualify for a 90 per cent reduction if taxpayers pay 10 per cent of the penalty by 31 December 2026. Paying 25 per cent in the following period, ending 30 June 2027, qualifies for a 75 per cent reduction.
Applications must be submitted by 1 October 2028. Only unpaid penalties are eligible. Applicants must provide duty-stamped statements confirming that any legal challenge has been withdrawn or none was filed, and that the penalty arose from inadvertence rather than fault. They must also satisfy Articles 23 and 24 of the amended Finance Ministry regulation. Most applications are limited to two; applications concerning administrative land and building tax fines are limited to one.
