DGT Mandates Formal Compliance Examination for All Taxpayers

JAKARTA, DDTCNews – Director General of Taxes Circular Letter Number SE-8/PJ/2026 requires account representatives or Directorate General of Taxation (DGT) employees to implement a formal compliance examination in respect of all taxpayers administered by the relevant tax office (kantor pelayanan pajak/KPP in Indonesian).

A formal compliance examination is an examination activity into taxpayers' compliance in fulfilling formal tax obligations or provisions stipulated under statutory provisions in the field of taxation.

"The formal compliance examination shall be implemented at the time a formal tax obligation/provision will be, is being or has already been fulfilled by the taxpayer," reads SE-8/PJ/2026, as cited on Tuesday (21/7/2026).

The formal compliance examination consists of validation and analysis activities on data/details regarding the fulfilment of formal obligations, such as:

1. timeliness of registration as a taxable person (pengusaha kena pajak/PKP in Indonesian);
2. timeliness and accuracy of tax payments/remittances;
3. timeliness and completeness of the filing of periodic tax returns, annual tax returns, notice of taxable objects (surat pemberitahuan objek pajak/SPOP in Indonesian) and other reports;
4. tax instalments within the current tax year that must be self-paid by the taxpayer;
5. tax services or tax facilities received or held by the taxpayer; and
6. other formal tax obligations.

The results of the formal compliance examination are set out in a nominative list comprising, first, a nominative list of taxpayers for whom an advisory letter is issued.

Taxpayers included in this nominative list are proposed to be issued various advisory letters, such as an advisory letter to report their business for registration as a taxable person, an advisory letter regarding the fulfilment of current-year tax instalment obligations, an advisory letter for the amendment of the tax report, other advisory letters for the fulfilment of formal tax obligations and a clarification letter for the notice of taxable objects.

Second, a nominative list of taxpayers for whom a notice of tax collection (surat tagihan pajak/STPin Indonesian) is issued. Taxpayers included in this nominative list are taxpayers that have not paid or have underpaid tax pursuant to Article 14 paragraph (1) subparagraph a of the General Provisions and Tax Procedures Law (GPTP Law); taxpayers with an underpayment due to misspeelings/miscalculations as referred to in Article 14 paragraph (1) subparagraph b of the GPTP Law; and taxpayers subject to penalties in the form of fines, interest and/or other administrative penalties in the field of taxation.

Third, a nominative list of taxpayers for whom a reprimand letter is issued. This list contains the names of taxpayers that have not yet submitted their tax reports within the prescribed time limit.

Fourth, a nominative list of taxpayers proposed for ex officio changes to the administration of their tax services and/or tax facilities. This list contains the names of taxpayers whose tax services or tax facilities are to be revoked, cancelled, reviewed or subject to other actions.

Fifth, other nominative lists to be followed up on pursuant to statutory provisions in the field of taxation.

"In the event that data and/or details are known or obtained that the taxpayers have formal tax obligations that have not been fulfilled outside the nominative list referred to in letter g), the head of the supervision section may manually generate cases for advisory letters, notices of tax collection and/or reprimand letters in the DGT supervisory administration system," reads SE-8/PJ/2026. (dik)