Differences of Representatives, Attorneys and Employees of Taxpayers

JAKARTA, DDTCNews – Taxpayers need to understand the differences between a representative, an attorney and an employee in fulfilling tax obligations.

This was conveyed by Senior Tax Instructor at the Central Jakarta Regional Office of the Directorate General of Taxes (DGT), Dian Anggraeni, in a podcast entitled A Comprehensive Review of the New Taxpayer Attorney-in-Fact Regulation (MoF Reg. 44/2026). Together with host Adi Priyatmoko, Dian stated that an understanding of all three is of great importance.

“We must distinguish between the terms used in fulfilling tax obligations. I have grouped them into 3 broad categories: representative, attorney and employee,” said Dian, as quoted on Tuesday (21/7/2026).

Dian explained that a representative is a tax bearer. As such, a representative is a party that carries out tax obligations in their own name and not as a third party. For an individual taxpayer, the representative is the taxpayer themselves.

Meanwhile, for a corporate taxpayer, such as a limited liability company (perseroan terbatas/PT in Indonesian), the party acting as representative is the management, regardless of whether or not their name appears in the deed of incorporation, provided they have the authority to determine company policies.

“For example, signing cheques or entering into contractual agreements. A commissioner may not appear in the deed. Nonetheless, they are included as a representative,” she added.

Because a representative acts in their own capacity rather than as a third party, they do not require a special power of attorney. Accordingly, a representative is also not subject to the tax competency requirements that are mandatory for an attorney.

An attorney, on the other hand, is a third party appointed to represent a taxpayer in exercising their tax rights and obligations. MoF Reg. 44/2026 divides attorneys-in-fact into three categories: tax consultants, family members and other parties.

A tax consultant is a party who has obtained an official licence from the minister of finance. A family member is a spouse or a person related by blood or by marriage up to the second degree of lineage. Other parties are those outside the categories of consultant and family member.

The distinguishing factor among these three categories is the competency requirement. Tax consultants and other parties must pass a competency examination administered by the Finance Education and Training Agency (Badan Pendidikan dan Pelatihan Keuangan/BPPK in Indonesian) of the Ministry of Finance (MoF) in order to obtain a Certificate of Competency.

Upon obtaining a Certificate of Competency, Dian continued, a certificate of registration (surat keterangan terdaftar/SKT in Indonesian) is automatically issued. The certificate of registration serves as proof that a person may act as an attorney. Should they wish to upgrade their status to that of a tax consultant, the certificate of registration is resubmitted to obtain a tax consultant licence.

Family members, meanwhile, are not required to fulfil the competency requirement, but must still provide proof of their family relationship. Such proof takes the form of documents, such as a family card or a statement letter the prescribed format. In addition, a special power of attorney remains mandatory.

“Family members do not need to demonstrate competency, but a special power of attorney remains mandatory,” Dian stated.

All categories of attorney-in-fact are required to attach a special power of attorney containing at minimum: the name, taxpayer identification number (TIN) and signature of the party granting the poweer of attorney; the name, TIN and signature of the attorney; the status of the attorney (consultant/family member/other party); the specific type of tax obligation being authorised; and the validity period of the power of attorney. The special power of attorney must also bear a duty stamp.

There are also provisions for pensioners or former employees of the MoF (including government employees under fixed-term contracts (pegawai pemerintah dengan perjanjian kerja/PPPK in Indonesian) who wish to become an attorney-in-fact. They must observe a cooling-off period of 5 years from the date of their retirement decree or honourable discharge decree.

During their term of office, such pensioners or former MoF employees must also not have been subject to any severe disciplinary sanction related to fraud. They are likewise required to sit the competency examination at FETA to obtain a certificate of registration.

The authority of an attorney may be terminated for various reasons, including expiry of the validity period, revocation by the taxpayer, revocation or suspension of the consultant licence, revocation or suspension of the certificate of registration or proof that the attorney has committed a tax crime or any other crime.

Finally, employees, particularly those who do not act as an attorney. Should an employee wish to act as an attorney, they must satisfy the requirements applicable to other parties, namely possessing tax competency as evidenced by a certificate of registration.

“If they do not fulfil those requirements, they cannot become an attorney. Nor are they a representative. Their authority is therefore limited,” said Dian.

Insofar as they do not satisfy those requirements, the role of an employee is limited to implementing certain technical duties, such as delivering documents in the context of an audit or a letter of inquiry (surat permintaan penjelasan atas data dan/atau keterangan/SP2DK in Indonesian).

For this purpose, an employee need only be provided with a letter of appointment from the attorney or the taxpayer. Dian emphasised that such an appointment does not constitute a delegation of authority. The format of the appointment letter is also regulated under the Appendix of MoF Reg. 44/2026.

On the same occasion, Dian also reminded taxpayers that, even where a taxpayer appoints an attorney-in-fact, full responsibility for the fulfilment of tax obligations remains with the taxpayer themselves.

“So, do exercise caution when appointing an attorney, so as not to give rise to issues further down the line,” Dian added. See also the Tax Class ‘MoF Reg. 44/2026: New Requirements for Taxpayer Attorneys’. (kaw)