Attorney Rules Revamped, 5-Year Cooling-Off for Former MoF Staff

JAKARTA, DDTCNews - The issuance of MoF Reg. 44/2026, which comprehensively revises the requirements for serving as a taxpayer attorney, has drawn significant public attention this week. The new regulation repeals and replaces MoF Reg. 229/2014.

The previous regulation was replaced because MoF Reg. 229/2014 did not provide for competency requirements for taxpayer attorneys or specify the categories of family members and other parties who may be appointed as attorneys.

"To provide legal certainty, equality as well as convenience for an attorney appointed by an individual taxpayer or corporate taxpayer to exercise their tax rights and fulfil their tax obligations, it is necessary to prepare a regulation concerning the requirements as well as the exercise of rights and the obligations of an attorney,” reads the considering section in MoF Reg. 44/2026.

Pursuant to the provisions, a taxpayer may appoint an attorney using a special power of attorney to exercise their tax rights and/or obligations. Through MoF Reg. 44/2026, the parties who may be appointed as a taxpayer attorney are now explicitly divided into 3 categories, namely:

1. tax consultant: a person who holds an official tax consultant licence from the minister of finance;
2. other party: a person (other than a consultant or family member) who holds a certificate of registration (surat keterangan terdaftar/SKT in Indonesian);
3. family member: a husband, wife or a family member related by blood/marriage up to the second degree of lineage of the taxpayer (not required to hold any specific competency).

A tax consultant acting as an attorney is deemed to possess specific competencies in the taxation aspect if they hold a tax consultant licence. Further, another party acting as an attorney is deemed to possess specific competencies in the taxation aspect if they hold a certificate of registration.

In addition, MoF Reg. 44/2026 also stipulates special conditions for former employees of the Ministry of Finance (MoF), including government employees under a fixed-term employment agreement, acting as other parties serving as taxpayers' attorneys. MoF Reg. 44/2026 states that former MoF employees wishing to become taxpayer attorneys must now observe a cooling-off period of 5 years.

"Other Party, who constitutes a civil servant pensioner of the Ministry of Finance, must fulfil the following provisions...a period of 5 (five) years has elapsed from the date of retirement listed in the pension decision," reads Article 5 paragraph (1) subparagraph b of MoF Reg. 44/2026.

The cooling-off period applies to civil servant pensioners of the MoF, MoF civil servants who resigned before reaching the mandatory retirement age and MoF employees under employment agreements.

According to the Directorate General of Taxes (DGT), the requirement is intended to ensure the neutrality of former MoF employees.

Please note that MoF Reg. 44/2026 contains transitional provisions. MoF Reg. 44/2026 also sets out transitional provisions. A person other than a tax consultant who holds a tax training/course certificate or a formal educational qualification in taxation may continue to be appointed as an attorney until 31 December 2026.

Beyond the new regulation on taxpayer attorneys, several other tax developments also attracted attention this week, including tax incentives being prepared for Indonesia's international financial centre and the government's plan to review the tax treatment of old-age security (jaminan hari tua/JHT in Indonesian) benefit disbursements.

Below is a comprehensive review of the tax articles.

Tax Shortfall Forecast at IDR46.9 Trillion

The government estimates that this year's tax revenue shortfall will reach approximately IDR46.9 trillion.

The projected shortfall reflects estimated tax revenue of IDR2,310.8 trillion, equivalent to 98% of the IDR2,357.7 trillion target.

As of the first half of 2026, tax revenue had reached IDR1,035.7 trillion, representing 43.9% of the annual target and marking 24.6% year-on-year growth.

Old Age Security Tax Provisions to Be Reviewed

Minister of Finance Purbaya, Yudhi Sadewa, will review the tax policies on old age security benefits by taking into account various factors, including inflation, the target beneficiaries and current employment conditions.

According to him, the tax policies on old age security disbursements must protect workers whilst maintaining the state's fiscal sustainability. "I will study it. We will revisit the calibration basis used when those provisions were applied," he stated.

This review is conducted in response to pressure from workers for the fraction of the old age security subject to a final Article 22 Income Tax rate of 0% to be increased from the current IDR0 to IDR50 million to IDR0 to IDR400 million. The tax provisions on old age security disbursements are regulated under Gov. Reg. 68/2009.

DGT Intensifies Supervision of Periodic Payments and Tax Returns

The Directorate General of Taxes (DGT) will step up tax compliance monitoring to safeguard the IDR2,357.7 trillion tax revenue target for 2026.

DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti, said the authority will simultaneously undertake two principal activities: monitoring periodic tax payments (pengawasan pembayaran masa/PPM in Indonesian) as well as conducting material compliance examinations, including tax return filing and completion.

"The process continues. In terms of the PPM, we are monitoring periodic filing for each remittance, identifying any gaps, such as where remittance was conducted previously but not now. This is continuously monitored by our colleagues [tax officers]," she said.

Proposed Wide-Ranging Financial Centre Tax Incentives

The Indonesian International Financial Centre (IIFC) Draft Law, drafted by the government together with Commission XI of the House of Representatives, also contains clauses on tax incentives.

Referring to Article 33 of the IIFC Draft Law, tax facilities at the IIFC cover income tax, value added tax (VAT)/sales tax on luxury goods (STLGs) and customs facilities.

"Income tax facilities referred to in Article 33 letter a shall be granted in the form of a corporate income tax reduction, an income tax reduction for professionals, an exclusion from status as tax residents (subjek pajak dalam negeri/SPDN in Indonesian) and an exemption from withholding/collection," reads Article 35 of the draft law.

Supreme Court: Tax Disputes at IIFC Should Stay with Tax Court

The Supreme Court (Mahkamah Agung/MA in Indonesian) has proposed that tax disputes arising within the IIFC continue to be adjudicated by the Tax Court, rather than by a special court established within the financial centre.

Head of the Oversight Chamber of the Supreme Court, Syamsul Ma'arif, said tax disputes should remain under the jurisdiction of the Tax Court to preserve the unity of Indonesia's legal system.

"If such authority is to be delegated to the IIFC, it must be reviewed to determine whether it is appropriate for the IIFC court to remain under the general judiciary," Syamsul said. (dik)