Tax Amendment and Objection Rules Revised: 6 Key Points
JAKARTA, DDTCNews – The Ministry of Finance (MoF) has revised the provisions governing the procedures for amendment, objection, reduction, nullification and cancellation in the field of taxation. This topic features as one of the national media reviews today, Tuesday (6/10/2026).
The MoF has issued MoF Reg. 71/2026, which revises MoF Reg. 118/2024 in an effort to achieve a sense of fairness, legal certainty and convenience for taxpayers. The new minister of finance regulation also aims to improve the effectiveness and efficiency of handling tax administration applications.
"To realise a sense of fairness and legal certainty ... it is necessary to amend the provisions on procedures for amendment, objection, reduction, nullification and cancellation in the field of taxation," reads the considering section of MoF Reg. 71/2026.
Through MoF Reg. 71/2026, a number of provisions have been refined and clarified. First, clarification of the drector general of taxes' authority to conduct the exchange of tax information (EoI) with the tax authorities of tax treaty partners in the context of objection examination.
This clarification was made by amending the wording of Article 14 paragraph (2) subparagraph h of MoF Reg. 118/2024. Previously, that article contained only the phrase “implementing exchanges for taxation purposes”. The article has now been amended to read “implementing exchanges of information for tax purposes”.
Second, clarification of the submission deadline for the response letter for the results of the examination of the objection for taxpayers that do not exercise their right to attend. Taxpayers are given a maximum of 10 business days after the date on which the summons is sent.
Third, the addition of Article 27A, which details the types of administrative penalties and fines for land and building tax (L&B Tax) in the plantation, forestry, oil and gas mining, geothermal mining, mineral or coal mining and other sectors (L&B Tax P5L) that may be reduced or nullified.
Fourth, clarification that payments made by a taxpayer against an L&B Tax P5L assessment must first be set off to settle the amount of tax unpaid or underpaid. Any overpayment beyond the principal amount of tax may then be set off against administrative penalties or L&B Tax P5L fines.
Fifth, a new incentive in the form of a reduction or nullification of L&B Tax P5L penalty fines to stimulate the national economy (Article 27A). This incentive may be granted by the director general of taxes upon a taxpayer's application submitted no later than 2 years from the date MoF Reg. 71/2026 comes into force.
Sixth, clarification that an application for reduction/cancellation of an incorrect notice of L&B Tax P5L assessment may only be submitted provided that: (i) no objection has been filed; or (ii) an objection has been filed but is not considered. MoF Reg. 71/2026 takes effect from 2 October 2026.
In addition to the above topic, there is a review of the Directorate General of Taxes' (DGT's) compliance supervision focus for next year. There are also discussions relating to the re-sit schedule for the Tax Consultant Certification Examination, the inauguration of DGT officials, the SPP-TDLN system, efforts to improve local fiscal capacity and other matters.
Below is a full review of the tax articles.
MoF Prepares L&B Tax P5L Penalty Relief to Boost the Economy
MoF Reg. 71/2026 also governs provisions on the nullification of administrative penalties or reduction of administrative fines for L&B Tax P5L. The nullification of such penalties is granted as an effort to boost domestic economic performance.
"In the context of encouraging the national economy, the director general of taxes may reduce or nullify administrative penalties or reduce administrative fines for L&B Tax P5L that fulfil the requirements…for applications submitted no later than 2 years from the date this minister of finance regulation comes into force," reads Article 27A of MoF Reg. 71/2026.
However, this incentive does not automatically apply to all L&B Tax P5L taxpayers. This is because the relief will be granted only where the taxpayer satisfied the requirements set out in Article 23 of MoF Reg. 71/2026. (DDTCNews)
USKP Re-sit Registration Closes at 12:00 WIB Today
Registration for the Tax Consultant Certification Examination (Ujian Sertifikasi Konsultan Pajak/USKP in Indonesian) Period III 2026, Levels A and B, for re-sit candidates will close on 6 October 2026. Registration must be completed by 12:00 WIB. The examination itself is scheduled to be held on 14–15 October 2026.
"Registration for the Tax Consultant Certification Examination (USKP) Period III 2026, Levels A and B (re-sit candidates) remains open and will close tomorrow, 6 October 2026 at 12:00 WIB," wrote the Tax Competency Testing WhatsApp channel.
It should be noted that registration may only be completed by candidates whose names appear on the list of candidates entitled to sit the re-sit examination. The complete list of re-sit candidate names is contained in Announcement Number PENG-16/KP3SKP/X/2026. (DDTCNews)
James Alm's Proposal to Indonesia for Strengthening Local Tax Capacity
Professor Emeritus of Economics at Tulane University, James Alm, has encouraged Indonesia to grant greater authority to local governments to collect taxes.
The expansion of tax-collection authority is necessary to enable local governments to generate more revenue to fund construction in their respective regions.
"There are only 2 ways to increase local government tax revenue: either grant local governments the authority to levy taxes on more potential objects or enhance local governments' capacity to collect taxes on the objects already available," said Alm. (DDTCNews)
Minister of Finance Inaugurates 13 DGT Officials
Minister of Finance Suahasil Nazara inaugurated 13 officials of the Directorate General of Taxes (DGT) as part of completing the organisational restructuring based on Minister of Finance Regulation (MoF Reg.) 124/2024, as amended by MoF Reg. 117/2025.
With this inauguration, the organisational structure of the DGT has been formally adjusted in line with the changes set out in MoF Reg. 124/2024, as amended by MoF Reg. 117/2025. In addition to the 13 DGT officials, the MoF also inaugurated Sunaryo as Head of the Bali, West Nusa Tenggara and East Nusa Tenggara Directorate General of Customs and Excise (DGCE) Regional Office.
"The inauguration of officials within the DGT forms part of the Ministry of Finance's efforts to complete and refine the organisational restructuring that has been under way since 2024,” stated the MoF in an official statement. (DDTCNews)
DGT's Compliance Supervision Focus for Next Year
The DGT will strengthen compliance supervision of several groups of taxpayers in 2027 to close the compliance gap and boost tax revenues.
There are at least 3 taxpayer groups that will be the focus of the DGT's compliance oversight next year. These include group taxpayers, taxpayers with transactions influenced by a special relationship and prominent individual taxpayers.
"Compliance supervision of these groups will indeed be a focus in 2027," said Director General of Taxes Bimo Wijayanto. (DDTCNews)
DGT: SPP-TDLN Data Collection Not for Monitoring Taxpayers‘ Accounts
as affirmed that all cross-border transaction data will be used on a limited basis by the operator of the tax collection system for cross-border digital transactions (sistem pemungutan pajak atas transaksi digital luar negeri/SPP-TDLN in Indonesian).
Director General of Taxes Bimo Wijayanto stated that a range of taxpayer data, including identity, account numbers, and transaction amounts, will be managed to map and analyse transactions subject to VAT. However, the DGT will not automatically use such data to deliberately monitor taxpayers' accounts.
"Data governance is used on a limited basis for mapping, analysis and VAT collection. This system is not intended in any way to monitor the public's accounts," he claimed. (DDTCNews)