Certificate of Registration Mandatory for Employees as Tax Attorneys
JAKARTA, DDTCNews - An employee must fulfil the criteria as another party as stipulated under MoF Reg. 44/2026 if they wish to act as an attorney of the taxpayer that employs them. This topic is one of the reviews in the national media today, Monday (13/7/2026).
The Directorate General of Taxes (DGT) states that to act as another party, the party must possess competence in the field of taxation, evidenced by a certificate of registration (surat keterangan terdaftar/SKT in Indonesian).
"That is correct [another party must hold a certificate of registration in order to act as an attorney]," said DGT Director of Tax Dissemination, Service and Public Relations, Inge Diana Rismawanti.
Under the previous provisions, namely MoF Regg. 229/2014, an employee of a taxpayer could act as an attorney of that taxpayer provided they were a permanent employee still actively receiving income from the taxpayer, as evidenced by Article 21 Withholding Tax.
Such an employee was required to hold a tax course/training certificate, a formal education diploma in taxation of at least a D-III level from an A-accredited university or a tax consultant certificate.
Given that MoF Reg. 44/2026, which repeals MoF Reg. 229/2014, does not contain a specific clause concerning employees acting as attorneys, employees must fulfil the criteria as another party to be appointed as attorneys.
To qualify as another party, an employee must hold a certificate of registration. "A certificate of registration is a letter issued by the minister of finance or an appointed official stating that the other party may act as an attorney," reads Article 1 number 7 of MoF Reg. 44/2026.
Procedures for obtaining a certificate of registration will be further regulated in a minister of finance regulation concerning tax consultants and other parties acting as taxpayer attorneys.
Inge also stated that the procedures for obtaining a certificate of registration are currently being prepared by the Financial Education and Training Agency (FETA or Badan Pendidikan dan Pelatihan Keuangan/BPPK in Indonesian). A person may obtain a certificate of registration upon passing the relevant examination. "It is being prepared by FETA," said Inge.
Please note that the requirement for an attorney other than a tax consultant to hold a certificate of registration does not take immediate effect this year. Pursuant to the transitional provisions of MoF Reg. 44/2026, a person other than a tax consultant may continue to act as an attorney, provided that they hold a certificate of tax course/training or a taxation education diploma of at least D-III level from an A-accredited university.
"A person other than a tax consultant who holds a certificate of tax course/training or a formal education diploma in the field of taxation issued by a public or private higher education institution with an accredited status of A, at a minimum of Diploma III level, may still be appointed as an attorney until 31 December 2026," reads Article 16 paragraph (1) of MoF Reg. 44/2026.
In addition to this topic, there is also a review of the proposal to designate zakat as a tax credit. Further, there is a discussion on the formulation of tax incentives at the financial centre.
The following is a complete review of the tax articles.
DGT May Now Terminate the Granting of Power of Attorney
The DGT is now authorised to issue a notice regarding the termination of the granting of power of attorney.
A notice regarding the termination of the granting of power of attorney is issued where there is termination of the granting of power of attorney due to the suspension or revocation of a tax consultant's licence, the suspension or revocation of a certificate of registration or the conviction of an attorney for a tax crime or other crimes as referred to in Article 10 paragraph (1) subparagraphs c, d, or e of MoF Reg. 44/2026.
The authority to issue and deliver the notice concerning the termination of the granting of power of attorney is delegated by the director general of taxes to the head of the tax office (kantor pelayanan pajak/KPP in Indonesian) in the form of a delegation. The issuance of the notice regarding the termination of the granting of power of attorney is conducted electronically according to the procedures under MoF Reg. 81/2024. (DDTCNews)
MUI Proposes Zakat Be Treated as a Tax Credit
The Indonesian Ulema Council (Majelis Ulema Indonesia/MUI in Indonesian) has requested the government to designate zakat as a tax credit, rather than merely as an income deduction, as is currently the case.
The Chairperson of the Board of Directors of the MUI National Sharia Board (Dewan Syariah Nasional/DSN in Indonesian), M. Cholil Nafis, stated that zakat should be able to directly reduce the tax payable in order to encourage the public and the business community to pay zakat through official institutions. In his view, a change in the tax treatment of zakat would also provide a fairer incentive for Muslims who already pay both zakat and tax.
"Under our current provisions, zakat can reduce taxable income, so it is a tax deduction, not a tax credit. We are advocating for zakat to become a tax credit so that the amount disbursed as zakat simultaneously forms part of our tax obligation," said Cholil. (DDTCNews)
Merchants Urged to Submit Statement Letters to Avoid Article 22 Withholding Tax
Marketplace providers are requesting individual taxpayers with annual turnover not yet exceeding IDR500 million to promptly upload their statement letters.
With such a statement letter, individual taxpayers trading through marketplace providers will be excluded from Article 22 Income Tax collection at 0.5% pursuant to Article 10 paragraph (1) subparagraph a of MoF Reg. 37/2025. The reminder to upload a statement letter has been issued by, among others, Shopee and Tokopedia.
Previously, the DGT had appointed 4 marketplace providers as Article 22 Income Tax collection agents at 0.5%, namely Shopee, Tokopedia, Lazada and Blibli. These four marketplace providers will commence Article 22 Income Tax collection from 1 August 2026. (DDTCNews)
Government Advised to Grant Tax Incentives at Financial Centre Selectively
The Indonesian Tax Consultants Association (Ikatan Konsultan Pajak Indonesia/IKPI in Indonesian) considers that the tax regime at the Indonesia International Financial Centre (IIFC) must be substance-based.
IKPI Chairperson, Vaudy Starworld, stated that tax incentives at the IIFC should likewise only be granted to entrepreneurs that fulfil the relevant criteria. In his view, selectively granted incentives are more fiscally efficient, minimise the risk of misuse, are aligned with international standards and are more flexible and easier to evaluate.
"This implies not granting tax incentives across the board, but rather selecting those matters that will have a long-term impact for Indonesia," he said when discussing the IIFC Draft Law with Commission XI of the House of Representatives (Dewan Perwakilan Rakyat/DPR in Indonesian). (DDTCNews)
One Data Indonesia Draft Law Could Support Improved Tax Compliance
The Ministry of Finance (MoF) considers that the One Data Indonesia (SDI) Draft Law will help improve tax compliance.
Head of the MoF's BaTii Information Systems Development Centre, Yan Inderayana, stated that the practice of submitting different data to different agencies still frequently occurs. Through data integration across ministries and institutions, discrepancies in information submitted by taxpayers to various agencies can be minimised.
"For instance, when submitting to a bank, the financial statement is overstated, but when submitting to the tax authority, the financial statement is understated. With One Data Indonesia, there will be a single reference point, thereby improving compliance among our stakeholders," he said at a plenary session on the One Data Indonesia Drat Law at the House Legislative Body. (DDTCNews) (dik)
