The Indonesian director general of taxes has issued a regulation to adjust tax reporting provisions following the implementation of the Coretax administration system.
The key provisions relate to:
The delegation of withholding tax (WHT) slip signatures;
Tax return correction mechanisms;
Compensation for overpayment; and
The reporting of periodic VAT and annual tax returns.
Director General of Taxes Regulation PER-12/PJ/2026 concerning Amendments to Director General of Taxes Regulation No. PER-11/PJ/2025 concerning Provisions for Reporting Income Tax, Value Added Tax, Sales Tax on Luxury Goods, and Stamp Duty in the Context of the Implementation of the Core System of Tax Administration (Coretax) took effect on October 1 2026.
The table below compares PER-11/PJ/2025 and PER-12/PJ/2026.
Change | PER-11/PJ/2025 | PER-12/PJ/2026 | Legal basis (PER-12) |
Signing of WHT slips | The signing of the WHT slip is carried out directly by the tax withholder. There is no explicit regulation of the mechanism for the delegation of electronic signatures. | A tax withholder can delegate and appoint one or more officials or employees through the taxpayer portal. | Article 6, paragraphs 2a and 2b, and Article 17, paragraphs 3 and 4 |
Calculation rule for VAT return amendments for taxable entrepreneurs | For a corrected VAT/luxury goods sales tax return, the underpayment or overpayment amount should simply be entered by copying the underpayment or overpayment amount stated in the previously filed main tax return. | Calculated based on cumulative payments and refunds made before the amendment. Therefore, the tax payable is the total tax paid minus the tax already refunded through a decision on preliminary refund of overpaid tax (SKPPKP) or an overpaid tax assessment notice (SKPLB). | Article 29B |
The concept of underpaid/overpaid income tax in a corrected annual tax return | Entry method varies, depending on the status of the overpayment/underpayment and the restitution process. | Standardised concept: • Individual and agency taxpayers (general) – total difference in the payment of Article 29 income tax minus the total return from the SKPPKP before the correction. • Oil and gas taxpayers (cost recovery scheme) – the difference between the oil and gas income tax payments and the total refund of tax that should not have been payable through an SKPLB. | Article 80A |
Overpayment compensation adjustment | If there is a change in past compensation, the taxpayer often has to correct consecutive tax returns in the following months manually. | The compensation difference is recorded as the compensation balance and is automatically adjusted in the normal tax return for the next tax period. | Articles 13A, 13B, 29C, 29D |
Order of reporting periodic VAT returns | No requirement to submit normal VAT returns in order. | A periodic VAT return with normal status cannot be reported if the previous periodic VAT return has not been submitted. | Article 29A |
Refund status when a tax return is corrected | There has not been a strict provision regarding automatic termination of services if the tax return is corrected. | The process of preliminary investigation/examination of restitution is stopped if the periodic tax return is corrected. | Article 129A |
Status of the decree concerning Article 29 income tax instalment decisions | The cancellation of the instalment decree due to the correction of the annual tax return has not been regulated. | The decree of approval of automatic instalments/deferrals of payment is declared invalid if the tax return is corrected. | Article 129B |
Taxpayers can now benefit from greater convenience through the formal recognition of delegated electronic signatures for WHT certificates and adjustments to dynamic compensation balances. These enhancements eliminate the complexity of making multiple consecutive tax return corrections manually, while also protecting taxpayers from fictitious underpayment liabilities through a new calculation rule that determines the actual cumulative position by taking into account taxes received and tax refunds issued.
However, alongside these improvements, the new system also requires greater discipline and compliance. Periodic VAT returns must now be filed sequentially. In addition, automatic consequences may apply, including the suspension of ongoing tax refund processes and the invalidation of an instalment/tax deferral approval letter (Article 29 income tax) if the taxpayer submits a tax return correction.
Tax return amendments or filings submitted prior to October 1 2026 will be processed under PER-11/PJ/2025, while those submitted from that date must comply with PER-12/PJ/2026.
VAT collection on foreign digital transactions
The Indonesian Directorate General of Taxes (DGT) has issued Official International Announcement No. PENG-6/PJ/2026 concerning the Mechanism for Collecting Indonesian VAT on Foreign Digital Transactions (SPP-TDLN). The announcement, which became effective on September 25 2026, was issued in connection with Minister of Finance Regulation No. 49 of 2026.
The matters to be considered by traders and foreign service providers include:
Indonesian VAT must be included in the price or amount payable by customers in Indonesia;
Indonesian VAT may be collected through a designated payment intermediary or other party established under Indonesian law; and
As a result, the amount received by foreign traders or service providers may be reduced by the amount of Indonesian VAT collected through the applicable payment mechanism.
SPP-TDLN is basically an administrative mechanism to collect VAT on the use of digital goods and/or services from abroad that have become subject to VAT in Indonesia, so it is not a new tax or VAT rate determination. In practice, customer payments in Indonesia already include VAT, which can be collected through the SPP-TDLN mechanism before the net payment is transferred to the foreign traders or service providers.
For foreign traders or service providers that have been appointed as PMSE (e-commerce) VAT collectors and have collected Indonesian VAT in accordance with the applicable regulations, these transactions are not subject to the SPP-TDLN mechanism. The SPP-TDLN and the PMSE VAT collector mechanisms are applied in accordance with the characteristics and conditions of each transaction.
SPP-TDLN is part of the DGT’s efforts to ensure that VAT collection on digital economy transactions runs effectively and provides equal treatment for businesses in Indonesia.
Tax relief for foreign-currency government securities
The Indonesian minister of finance has issued a regulation to encourage the deepening of the national financial market and increase the interest of public and business actors to place funds in government securities (SBN) in foreign currency issued by the government in the domestic primary market.
Regulation of the Minister of Finance of the Republic of Indonesia No. 59 of 2026 concerning Government-Borne Income Tax on Interest or Yields of Government Securities in Foreign Currency Issued by the Government in the Domestic Primary Market for the 2026 Fiscal Year provides government-borne income tax facilities for the following transactions:
Income tax borne by the government (DTP) is granted on income in the form of interest or yields from SBN in foreign currency issued by the government in the domestic primary market;
SBN in foreign exchange include SUN (government bonds) and SBSN (government sharia securities), such as discounts incurred at the time of issuance in the domestic primary market;
Issuance in the domestic primary market means the first activity of offering and sale of SBN in foreign currency in Indonesia; and
The DTP facility is provided for the tax periods from June 2026 to December 2026.
This policy is related to the adjustment of the foreign exchange from export proceeds (DHE) policy that allows the placement of DHE in SUN and/or SBSN instruments denominated in foreign currency. The provision came into effect on August 24 2026.
