DGT Sets Taxpayer Supervision Guidelines Covering 3 Examination Types

JAKARTA, DDTCNews - The issuance of new guidelines for the supervision of taxpayers’ compliance has garnered substantial public attention in the past week. These new guidelines are contained in the Director General of Taxes Circular Letter (Surat Edaran/SE in Indonesian) SE-8/PJ/2026 concerning Guidelines for the Supervision of Taxpayers' Compliance.

SE-8/PJ/2026 has been issued in line with the entry into force of MoF Reg. 111/2025 concerning the Supervision of Taxpayers' Compliance, the implementation of the coretax administration system, the results of evaluations of supervision as well as input from stakeholders

SE-8/PJ/2026 repeals and replaces 4 previous circular letters simultaneously, namely SE-14/PJ/2019 concerning Procedures for Extensification, SE-11/PJ/2020 concerning Procedures for Field Data Collection Activities and Data Quality Assurance in the Context of Database Expansion, SE-05/PJ/2022 concerning the Supervision of Taxpayers' Compliance and SE-9/PJ/2023 concerning the Settlement of the Follow-Up on Concrete Data.

The Directorate General of Taxes (DGT) may conduct 3 types of supervision, namely supervision of registered taxpayers; supervision of unregistered taxpayers; and regional supervision. Data and/or information obtained in the course of supervision of registered taxpayers or unregistered taxpayers shall be followed up by means of data collection activities (kegiatan pengumpulan data/KPD in Indonesian).

Such supervision may cover one, several or all taxes, for one/several taxable periods, fraction of a tax year or a tax year as well as supervision of taxpayer economic activities and the identification of taxpayers in each working area.

All supervision (registered, unregistered and regional) is implemented through the DGT supervision administration system. Where this system is not yet available, oversight is implemented through the DGT administration system.

One of the key aspects of SE-8/PJ/2026 is the 3 types of material compliance examination, namely comprehensive examination, simple examination and automated examination.

Material compliance examination refers to examination activities of a taxpayer's compliance in fulfilling material tax obligations or provisions stipulated under statutory provisions in the field of taxation.

Comprehensive examination refers to a material compliance examination covering all taxes that constitute a taxpayer's obligations in a comprehensive manner, including through business process analysis, financial statement analysis and/or transfer pricing analysis, for tax years prior to the current tax year.

Simple examination refers to a material compliance examination covering some or all taxes with a specific taxpayer scope, including through business process analysis and/or financial statement analysis, for the current tax year and/or tax years prior to the current year.

Automated examination refers to a material compliance examination covering one or several taxes and one or several taxable periods on a limited basis.

In addition to the new guidelines for the supervision of taxpayers’ compliance, there are several other interesting topics worth revisiting. These include the piloting of a cooperative compliance programme through the implementation of a tax control framework and tax data integration as well as the use of coretax in the processing of working papers for DGT business processes.

The following is a complete review of the tax articles.

DGT Pilots Cooperative Compliance Programme Via TCF

The Directorate General of Taxes (DGT) has launched the piloting of a cooperative compliance programme through the application of a tax control framework (TCF) and tax data integration.

In the initial phase, the cooperative compliance programme targets 3 state-owned enterprises (SOEs), namely Pertamina, PLN and Pelindo. Through cooperative compliance, the tax authority and taxpayers will establish open communication to foster mutual trust between both parties.

"This kick-off is an important step, marking the transformation of tax administration towards a more modern, collaborative, data-driven approach that is oriented towards early risk prevention," said Director General of Taxes, Bimo Wijayanto.

Coretax to Gradually Cover Supervision through Appeal Working Papers

DGT is set to use the coretax for working papers across all business processes, to be rolled out gradually from this month.

With this initiative, all working papers relating to supervision, collection, objections, appeals, and law enforcement will be processed by DGT employees through the coretax.

As such, all supervision working papers, law enforcement working papers, collection working papers and objections/appeals will gradually only be able to be processed in the coretax platform," kata Bimo.

Financial Centre Investors Eligible for 0% Income Tax for 50 Years

The government is considering granting tax incentives for 50 years to entrepreneurs operating at the Indonesia International Financial Centre (IIFC).

Chairperson of the House of Representatives Commission XI, Mukhamad Misbakhun, revealed that the tax incentive offered would take the form of a 0% income tax rate applied for up to 50 years. The incentives offered by Indonesia's financial centre would attract the interest of major investors.

"Of course, we will provide a wide array of incentives. The government will offer a 0% tax rate for up to 50 years. Personally, I think [the incentive] should remain in place as long as the IIFC exists, but the government considers 50 years," he claimed.

Fewer Than 1% of Letters of Inquiry Lead to Audits

The DGT has revealed that the average number of letters of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian) that progress to the audit stage has consistently been fewer than 1% of the total number of SP2DKs issued in a year.

Pursuant to MoF Reg. 111/2025, the DGT is authorised to issue SP2DKs to supervise both registered and unregistered taxpayers. The DGT may escalate the SP2DK to the audit stage if indications of non-compliance and unfulfilled tax obligations are found.

"The number of SP2DKs that escalate to audit has, on average, been below 1% of the total SP2DKs issued," claimed the Director of Tax Dissemination, Service and Public Relations at the DGT, Inge Diana Rismawanti.

BPK Flags Suboptimal Tax Receivable Collection by DGT

The Audit Board of the Republic of Indonesia (Badan Pemeriksa Keuangan/BPK in Indonesian) has noted that the Directorate General of Taxes (DGT) has yet to collect tax receivables optimally. Results of sample testing on 2025 tax receivable collection indicate that the DGT had not been implementing active collection measures according to the deadline applicable to each assessment.

Referring to the 2025 Audit Report on the Central Government Financial Statements (Laporan Hasil Pemeriksaan atas Laporan Keuangan Pemerintah Pusat/LHP LKPP in Indonesian), the Audit Board of the Republic of Indonesia noted 1,534 assessments worth IDR1.24 trillion whose statute of limitations has expired without active collection by the DGT.

" Based on further clarification, it is known that the execution of active collection was largely hampered by taxpayers that could not be located and the absence of taxpayer assets that could be confiscated to settle the tax liabilities," the Audit Board of the Republic of Indonesia wrote in the 2025 LHP LKPP. (dik)