{"id":51731,"date":"2026-10-13T23:24:35","date_gmt":"2026-10-13T15:24:35","guid":{"rendered":"https:\/\/visa-indonesia.com\/?p=51731"},"modified":"2026-10-13T23:24:38","modified_gmt":"2026-10-13T15:24:38","slug":"indonesia-tax-penalty-relief-pmk-71-2026","status":"publish","type":"post","link":"https:\/\/visa-indonesia.com\/it\/visas-and-regulations\/indonesia-tax-penalty-relief-pmk-71-2026\/","title":{"rendered":"Modifica delle norme relative alle agevolazioni fiscali in Indonesia nel 2026"},"content":{"rendered":"

Received a tax notice from Indonesia\u2019s tax office? You may see two amounts: tax you still owe and an extra penalty. Under updated rules, you may be able to ask for a reduction in some penalties. But the government will not remove them automatically.<\/p>\n\n\n\n

Indonesia\u2019s Ministry of Finance Regulation No. 71 of 2026 (PMK 71\/2026<\/a>) took effect on 2 October 2026. It changes parts of PMK 118\/2024<\/a>, the rules for fixing tax errors, disputing tax assessments, and reducing or cancelling penalties. It also changes how tax payments are counted and makes clear that some penalties cannot receive relief.<\/p>\n\n\n\n

This is not a change to Indonesia\u2019s tax rates, and it is not a special rule for foreigners. Still, if you pay tax in Indonesia, either as an individual or through a foreign-owned company (PT PMA)<\/a>, these rules may affect you.<\/p>\n\n\n\n

What Changed Under PMK 71\/2026?<\/h2>\n\n\n\n
\"Infographic<\/figure>\n\n\n\n

The key change is Article 27A. It allows the Directorate General of Taxes (DGT, Indonesia\u2019s national tax authority) to consider reducing or removing certain administrative penalties. These are extra charges linked to tax problems, such as unpaid tax. The article also covers certain land and building tax fines.<\/p>\n\n\n\n

You must send an application under this rule within two years from 2 October 2026. That means the window runs into October 2028. However, the DGT decides whether to give relief. It is not guaranteed. You must also meet the conditions in Article 23.<\/p>\n\n\n\n

Some penalties cannot be reduced<\/h3>\n\n\n\n

Article 21A explains which penalties can be reduced or cancelled. These include certain penalties listed in a tax assessment letter, called a Surat Ketetapan Pajak (SKP), or a tax collection letter, called a Surat Tagihan Pajak (STP). Some central-government land and building tax penalties are also covered.<\/p>\n\n\n\n

There is a key exception. Penalties in STPs issued under Articles 25(9), 27(5d), and 27(5f) of the General Tax Provisions and Procedures Law (UU KUP) do not qualify. These rules cover certain penalties after taxpayers lose an objection, appeal, or judicial review. If the tax office received an application for one of these penalties before 2 October 2026 and had not decided it, a transition rule keeps the earlier regulation relevant.<\/p>\n\n\n\n

So, be careful before you dispute a tax bill. If you lose, you may face a penalty that cannot be reduced through this procedure. Check the risk with a tax adviser before filing.<\/p>\n\n\n\n

Your payment goes toward unpaid tax first<\/h3>\n\n\n\n

Article 23 also changes how payments are counted<\/a>. When you pay an amount shown on the relevant SKP or STP, the payment goes first toward the main tax you owe. This is called the principal tax. Only money paid above that amount goes toward penalties.<\/p>\n\n\n\n

For example, a company owes Rp80 million in principal tax and Rp20 million in penalties. It pays Rp80 million. Under the new rule, that Rp80 million first pays off the principal tax. The Rp20 million penalty still exists, but the company may now meet the principal-payment condition for asking for relief, if the penalty qualifies.<\/p>\n\n\n\n

In short, paying the main tax and getting a penalty reduced are two different steps.<\/p>\n\n\n\n

Who Is Affected by the New Rules?<\/h2>\n\n\n\n

These rules are for taxpayers in Indonesia, not just foreign nationals. They can affect Indonesian businesses, individual taxpayers, foreign residents who must pay Indonesian tax<\/a>, e foreign-owned companies known as PT PMAs<\/a>.<\/p>\n\n\n\n

For example, a PT PMA may receive a tax bill after a company tax audit, when the tax office checks its records. A foreign resident may receive a tax assessment or collection notice for their own Indonesian tax. Whether they can ask for relief depends on the notice, the law used, and any other tax case already in progress. It does not depend on nationality.<\/p>\n\n\n\n

If you are visiting Indonesia as a tourist and do not have a relevant Indonesian tax bill or tax duty, this regulation does not create a new visa or immigration rule for you.<\/p>\n\n\n\n

Can Foreigners and PT PMA Owners Apply for Tax Penalty Relief?<\/h2>\n\n\n\n

Yes, they may be able to apply. A foreigner or PT PMA that pays tax in Indonesia can use the rules when the type of penalty and the application meet the legal conditions. The first step is to understand what you want to change: the tax amount or the penalty.<\/p>\n\n\n\n

If you believe the main tax amount is wrong, you may need an objection or correction. An objection is a formal request for the tax office to review its decision. If the tax amount is correct but the penalty qualifies for relief, you may ask to reduce or remove the penalty instead. These are different processes, and an ongoing case may affect your options.<\/p>\n\n\n\n

Article 23 generally requires you to pay the outstanding principal tax first. You must then send a written application in Indonesian. It should state which penalty you want reduced and explain why. You normally need a separate application for each eligible SKP or STP. The taxpayer or an authorized representative must sign it. Other rules may limit applications while certain tax cases or collection actions are still under way. Paying the principal tax does not mean the DGT must approve your request.<\/p>\n\n\n\n

How Do the New Payment and Objection Procedures Work?<\/h2>\n\n\n\n
\"Decision<\/figure>\n\n\n\n

How the tax office checks objections<\/h3>\n\n\n\n

When you file a tax objection, the DGT can check your documents and ask you to explain them. It can also ask third parties for information. Under Article 14, it may exchange tax information with another country\u2019s tax authority when an international tax agreement allows this.<\/p>\n\n\n\n

You also have response deadlines. You normally have 15 working days to answer the first request for documents or explanations. If the DGT sends a second request, you normally have 10 working days. You also have a 10-working-day period to give a written response to the DGT\u2019s objection findings. PMK 71\/2026 clarifies when that period starts. These time limits were not all introduced in October 2026.<\/p>\n\n\n\n

If you earn income or run a business in more than one country, keep clear contracts, invoices, payment records, and tax returns. If your business needs transfer-pricing records (documents that support prices used between related companies), keep those too. Information sharing must still follow the relevant tax agreements and privacy rules.<\/p>\n\n\n\n

A penalty reduction is different from a tax objection<\/h3>\n\n\n\n

An objection means you believe the tax office\u2019s decision about the tax amount is wrong. A penalty-relief request means you accept or separately deal with the tax amount but ask the DGT to reduce or remove an eligible penalty. For errors in a notice, a correction or cancellation request may be another option. Check the exact notice and your goal before choosing a process, because using the wrong one can waste time or affect your rights.<\/p>\n\n\n\n

What Should Taxpayers Do Next?<\/h2>\n\n\n\n

If you have an unpaid tax notice, start by reading it carefully. Do not assume the new regulation will remove the amount you owe.<\/p>\n\n\n\n