Indonesia lets taxpayers waive penalties for late tax returns: the full waiver runs until the end of 2026
Taxpayers in Indonesia can apply for a full waiver of the penalty for filing a tax return with tax payable after the deadline. For this category, the maximum reduction applies to returns filed between 8 October and 31 December 2026, provided the other conditions of the programme are met. In 2027, the relief becomes smaller.
The procedure is set out in Decision of the Director General of Taxes KEP-239/PJ/2026, in force since 8 October 2026. It was issued under PMK 118/2024 as amended by PMK 71/2026 (in force since 2 October 2026).
The relief for late filing covers returns with kurang bayar — tax payable status:
annual PPh (income tax) returns for 2025 and earlier years;
monthly returns for September 2026 and earlier periods.
The amount waived depends on the filing date:
When the return is filed | Penalty reduction |
8 October – 31 December 2026 | 100% |
1 January – 31 March 2027 | 50% |
1 April – 30 June 2027 | 25% |
No relief is available in this category for returns filed on or after 1 July 2027. The specific conditions differ for taxpayers who have registered for the first time and for those already registered who receive tax assessments; they are set out in the annex to the decision.
The decision also covers interest for late payment of tax under such returns and interest on a voluntary correction of a return with additional tax payable (pembetulan), with the same date-based scale. Separate conditions apply to sanctions in tax collection letters (STP) and assessment letters (SKP) that have already been issued: the amount of relief depends on the date the document was issued and on when the principal debt or part of the sanction was paid. This is why the table above cannot be applied to every case.
The waiver is not automatic. An application must be submitted to the tax office no later than 1 October 2028. Applying late does not extend the programme deadlines: the return must be filed and the tax under it paid within the periods stated above, no later than 30 June 2027. The relief applies only to the unpaid part of the sanctions; the principal tax must be paid in full. The applicant must meet the conditions of Articles 23 and 24 of PMK 118/2024, must not be challenging the sanction in court (or must withdraw the claim), and must attach a statement that the sanction arose by mistake or through no fault of their own. The decision on the waiver is made by the tax authority.
The decision contains no separate exception for foreign-owned PT PMA companies. Whether the relief can be used has to be assessed against the specific company's returns, assessed sanctions and payment history.
If your company has overdue tax reporting or unpaid tax sanctions, contact Legal Indonesia. We can review your documents and determine which conditions of the programme may apply in your case.
