New Circular Letter Allows DGT to Request HWI Financial Data

JAKARTA, DDTCNews - Updates to procedures for requests for information and/or evidence or details (informasi dan/atau bukti atau keterangan/IBK in Indonesian) in the context of the implementation of access to financial information for tax purposes have attracted public attention in the past week. Procedures for requests for information and/or evidence or details are set forth in SE-9/PJ/2026.

The update was conducted in line with the entry into force of the MoF Reg. 108/2025, which overhauls the provisions governing access to financial information for tax purposes.

Pursuant to SE-9/PJ/2026, officials of the Directorate General of Taxes (DGT) may include high-wealth individuals and prominent people on the list of proposed requests for information and/or evidence or details. Requests for information and/or evidence or details are made in the context of supervising taxpayers' compliance.

Such requests are submitted based on proposals from DGT officials. Proposals are prepared by identifying individuals or entities according to specific criteria.

"The officials...shall prepare a proposal in the form of a list of individuals or entities...from whom IBK is requested by the financial institution and/or CARF reporting PJAK," reads number 6 letter b number 6) of SE-9/PJ/2026.

Referring to SE-9/PJ/2026, there are 3 officials authorised to request information and/or evidence or details from financial institutions in the context of supervising taxpayers' compliance. First, primary executive officials at the DGT head office responsible for preparing the list of analysis targets, implementing tax data analysis and distributing analysis results.

Second, the head of the DGT regional office (kantor wilayah/kanwil in Indonesian). Third, the head of the tax office (kantor pelayanan pajak/KPP in Indonesian). The authorised officials may submit requests for information and/or evidence or details to obtain financial information regarding:

1. individuals or entities included in: the list of analysis targets; the list of supervision priorities; and the list of extensification priorities; and/or
2. parties related to the individuals or entities concerned. Such related parties include family members, management, taxpayer's representatives, shareholders, beneficial owners, and/or other parties whose information and/or evidence or details are required to support supervision activities of taxpayers' compliance.

However, requests for information and/or evidence or details concerning related parties may only be submitted by primary executive officials at the DGT head office. Such requests are made on the basis of the list of analysis targets and the list of supervision priorities followed up on by the DGT head office.

Meanwhile, requests for information and/or evidence or details in respect of the taxpayer concerned must first be preceded by the preparation of a list of proposals. The preparation of the list of proposals is carried out by identifying individuals or entities according to specific criteria, comprising:

1. having a high non-compliance risk based on compliance risk management (CRM);
2. constituting taxpayers under the supervision of group taxpayers;
3. constituting high wealth individuals, prominent people or other priority categories of supervision based on the supervision policies of the DGT; and/or
4. based on the results of the analysis or other considerations, the IBK concerning the individuals or entities is eligible to be requested.

Such proposals must obtain approval from: (i) primary executive officials within the DGT head office (for proposals to be followed up on by the DGT head office); or (ii) the head of the DGT regional office (for proposals to be followed up on by the regional office or tax office).

SE-9/PJ/2026 also sets out the scope of use of information and/or evidence or details received from financial institutions. Such data may, among others, be used for supervision activities of taxpayers' compliance and may be followed up on with the issuance of a letter of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian).

In addition to updates to procedures for requests for financial information, several other tax issues have also garnered readers' attention over the past week. These include the 0% corporate income tax (CIT) facility for up to 50 years for investors in the financial centre and the DGT prohibiting taxpayers from recording SP2DK explanations via video conference.

The following is a complete review of the tax articles.

IIFC Law Ratified: Investors Eligible for 50-Year 0% Corporate Tax

A 0% corporate income tax (CIT) facility for up to 50 years has officially become one of the incentives offered at the Indonesian International Financial Centre (IIFC), following the ratification of the IIFC Law.

However, that rate does not apply to multinational corporations satisfying certain criteria covered under the global minimum tax (GMT) scheme. According to the Director General of Financial Sector Stability and Development, Herman Saheruddin, the 0% CIT incentive does not imply investors are automatically exempt from tax.

" They [investors/entrepreneurs receiving 0% income tax] must certainly meet certain criteria. Most importantly, they must bring foreign investment into the IIFC. It will be regulated under a government regulation," he stated.

DGT Bans Recording of SP2DK Explanations via Video Conference

Director General of Taxes Circular Letter Number SE-8/PJ/2026 prohibits taxpayers from recording the submission of explanations concerning letters of inquiry. This prohibition applies where the explanation regarding the SP2DK is submitted by the taxpayer, their representative, attorney or employee in person via video conference.

Any taxpayer, representative, attorney or employee who breaches the aforementioned prohibition on recording shall be subject to penalties pursuant to statutory provisions.

It should be noted that, although taxpayers are prohibited from recording during the in-person submission of explanations via video conference, the tax office is, in fact, authorised to record such activities.

Collecting Art. 22 Income Tax, Marketplaces Urged Not to Charge Fees

The DGT has reminded marketplace providers not to impose additional charges on online merchants (sellers) after being appointed as Article 22 Income Tax collection agents. Even if charges are levied, the marketplace must explain them transparently to sellers.

DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti, said sellers are entitled to request an explanation if a marketplace imposes additional charges linked to the implementation of Article 22 Income Tax collection.

"If the marketplace, in fact, imposes charges that appear to increase costs due to the collection of Article 22 Income Tax, this must be questioned," she remarked.

DGT Responds to Proposal for Zakat as a Tax Credit

Director General of Taxes, Bimo Wijayanto, stated that the Directorate General of Taxes (DGT) has held discussions with the Indonesian Ulema Council (Majelis Ulama Indonesia/MUI in Indonesian) regarding the tax treatment of zakat payments. In his view, the assessment of tax treatment for zakat must take into account the aspect of fairness across different religious communities.

"Under the current rules, we must act fairly for all religious communities. As such, it is indeed not treated as a tax credit, but rather as a deductible expense," he claimed.

Although the relevant regulation will not be revised in the near future, Bimo continued, the government remains open to discussing the tax treatment of zakat.

DGT: Cooperation with Babinsa Limited to Information Coordination

Director General of Taxes, Bimo Wijayanto, affirmed that the involvement of Village Supervisory Non-Commissioned Officers (Bintara Pembina Desa/Babinsa in Indonesian) and Bhayangkara Community Security and Order Advisors (Bhayangkara Pembina Keamanan dan Ketertiban Masyarakat/Bhabinkamtibmas in Indonesian) in supervising taxpayers' compliance is limited solely to coordination and exchange of information.

Bimo explained that tax officers may establish cross-agency cooperation at the subdistrict or village level, including with Village Supervisory Non-Commissioned Officers and Bhayangkara Community Security and Order Advisors. However, he emphasised that such cooperation is not for the purpose of conducting tax audits or collecting taxes.

"There is no need to make a controversy out of the fact that tax officers will involve Babinsa and the like. It is simply information coordination. As such, in gathering information, we cooperate with stakeholders, including Babinsa and Bhabinkamtibmas," he stated. (dik)