DGT Affirms Broader Definition of Negligence to Nullify Tax Penalties
JAKARTA, DDTCNews – The grounds of taxpayer's negligence that form the basis for the reduction or reduction of administrative tax penalties are not limited to the conditions set out in Ministerial Regulation (MoF Reg.) 118/2024, as amended by MoF Reg. 71/2026. This topic is among those covered by national media today, Monday (2/11/2026).
The Director of Tax Dissemination, Service and Public Relations at the Directorate General of Taxes (DGT), Inge Diana Rismawanti, stated that the director general of taxes is authorised to reduce or nullify administrative tax penalties as provided under Article 36 paragraph (1) subparagraph a of the General Provisions and Tax Procedures (GPTP) Law.
"Outside those grounds, the director general of taxes cannot grant [a reduction or nullification of administrative tax penalties]," she said.
Inge emphasised that the definition of taxpayer's negligence and absence of taxpayer's wilful misconduct under Article 36 paragraph (1) subparagraph a of the GTPP Law is not limited to the conditions referred to in Article 27 paragraph (3) of MoF Reg. 118/2024, as amended by MoF Reg. 71/2026.
This implies that a taxpayer may apply for a reduction or nullification of administrative tax penalties on the basis of other conditions not mentioned in Article 27 paragraph (3) of MoF Reg. 118/2024, provided that those conditions qualify as taxpayer's negligence and absence of taxpayer's wilful misconduct t.
"It should also be understood that the definition of negligence and absence of wilful misconduct under Article 27A is very broad, such that it may extend beyond Article 27 paragraph (3)," Inge explained.
However, this does not imply that all grounds falling outside Article 27 paragraph (3) will automatically be granted. When asked whether the DGT would first examine applications submitted by taxpayers, Inge did not provide a direct answer.
She stated only that taxpayers must prepare an application letter accompanied by a statement letter, declaring that the administrative penalty arose due to taxpayer's negligence or the absence of taxpayer's wilful misconduct.
"This is to inform the director general of taxes that a condition of taxpayer's negligence and absence of wilful misconduct exists. Therefore, no supporting documents are required; a statement letter alone is sufficient," she said.
Inge added that taxpayers are not required to attach any other supporting documents. Taxpayers need only prepare and sign a stamped statement letter as required under the Director General of Taxes Decree KEP-239/PJ/2026.
"The meaning of the stamped statement letter is to declare the actual condition of the taxpayer," she said.
In addition to the above topic, there is also coverage of fiscal incentives for property under the Indonesian International Financial Centre (IIFC) Law. Further topics include digital tax remittances, VAT collection agents via the SPP-TDLN, candidates for tax court judges and other matters.
Below is a full review of the tax articles.
DGT Decisions on Penalty Reduction Applications Submitted via Coretax
Taxpayers applying for the reduction or nullification of administrative tax penalties should check their respective coretax accounts periodically to view response notifications from the DGT.
The Director of Tax Dissemination, Service and Public Relations at the DGT, Inge Diana Rismawanti, stated that the authority will send decisions approving or rejecting taxpayers' applications via coretax.
"Applications for the reduction or nullification of tax penalties are submitted by taxpayers through coretax. Accordingly, decisions will also be delivered via the taxpayer's coretax account," she remarked. (DDTCNews)
Digital Tax Remittances to September 2026 Exceed IDR12.72 Trillion
The DGT has reported that tax revenue from the digital economy sector reached IDR12.72 trillion from January to September 2026.
This tax revenue comprised VAT on e-commerce (perdagangan melalui sistem elektronik/PMSE in Indonesian) of IDR9.54 trillion, cryptocurrency tax of IDR300.28 billion, fintech tax of IDR989.53 billion and tax collected by third parties via the government procurement information system (sistem informasi pengadaan pemerintah/SIPP in Indonesian) of IDR1.89 trillion.
"These revenues reflect the contribution of digital economic activity to state revenues," said Director General of Taxes, Bimo Wijayanto, in an official statement. (DDTCNews/Kontan)
IIFC Law Contains Diverse Tax Incentives for Property
Law 6/2026 on the Indonesian International Financial Centre (IIFC) contains the provisions granting various tax incentives for property transactions.
Through Article 57 paragraph (2) of the IIFC Law, new buildings in the form of landed houses, apartment units, offices, shops, shopping centres and warehouses are categorised as strategic taxable goods not subject to VAT collection.
"Certain strategic taxable goods…include new buildings in the form of landed houses, flat units, offices, shops/shopping centres and/or warehouses for certain individuals, certain entities, certain ministries and certain institutions at the IIFC," reads Article 57 paragraph (2) subparagraph a. (DDTCNews)
DGT to Add VAT Collection Agents via SPP-TDLN: Stabilisation Under Way
The DGT is preparing to appoint new issuers to serve as VAT collection agents under the tax collection system for cross-border digital transaction (sistem pemungutan pajak atas transaksi digital luar negeri/SPP-TDLN in Indonesian).
The Director of Tax Dissemination, Service and Public Relations at the DGT, Inge Diana Rismawanti, said that the prospective issuers to be appointed are currently still in the stabilisation period. She, therefore, could not confirm a timeline for their appointment.
"At present, other prospective issuers are in the stabilisation period. We will provide information regarding the appointment of new issuers once all preparatory stages have been completed," she claimed. (DDTCNews)
Director General of Taxes: Indonesia's Tax System Needs Simplification
The DGT recognises that Indonesia's tax system needs to be continually simplified to enable it to be more readily understood and applied by all taxpayers.
Director General of Taxes, Bimo Wijayanto, stated that the effort to simplify the tax system also aims to deliver fairness and legal certainty. To this end, the DGT cannot focus solely on collecting state revenues.
"As the authority responsible for collecting tax revenue, the DGT must continuously endeavour to build a tax system that is fairer, provides greater legal certainty, and is increasingly straightforward to understand," he said. (DDTCNews)
Public May Submit Input on Track Records of Tax Court Judge Candidates
Members of the public may submit information and feedback regarding the integrity and track records of tax court judge candidates.
Referring to the Announcement of the Central Committee for the Recruitment of Candidate Tax Court Judges Number PENG-3/PHPP/2026, information on track records is required to support the fit-and-proper test of tax court judge candidates.
"The background check is conducted to ensure that candidate judges have a good track record, professionalism, and integrity as well as are free from any issues that may affect their suitability to serve as judges," reads PENG-3/PHPP/2026. (DDTCNews)