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Indonesia’s Directorate General of Taxes (DGT) has issued a new decision providing relief to individual taxpayers with a temporary waiver of administrative penalties for late tax payments and submissions. Along with this, updates to customs and excise audit procedures and free trade zone customs regulations have also been announced, marking significant changes in Indonesia’s tax landscape.
Waiver of Penalties for Individual Taxpayers
As part of an effort to accommodate taxpayers impacted by the national holidays, Decision No. KEP-79/PJ/2025 was issued by the DGT. This policy offers relief by waiving penalties for individuals who are late in paying their Article 29 income tax and/or submitting their annual tax returns for the 2024 tax year.
Key Dates for the Waiver:
- Normal Deadline: March 31, 2025
- Extended Deadline (without penalty): April 11, 2025
Taxpayers who make payments or submit returns after the original deadline (March 31, 2025) but before April 11, 2025, will not face administrative penalties, which means no tax collection letters will be issued for these late filings.
This temporary waiver comes as the tax deadline coincided with Nyepi Day and Eid al-Fitr holidays, which affected many taxpayers’ ability to meet the usual deadlines.
Customs and Excise Audit Procedures Overhauled
Indonesia’s Directorate General of Customs and Excise (DGCE) has introduced important regulatory changes with Regulation No. PER-2/BC/2025 concerning customs audit and excise audit procedures.
Effective March 1, 2025, the new guidelines replace earlier frameworks and focus on improving the quality and efficiency of audits. Notable changes include:
- General Audit Period: Now set at 21 months, which begins at the end of the month before the issuance of the assignment letter.
- Investigation and Special Audits: The audit periods for investigations (prosecution-related audits) and special audits (in the case of objections) will vary based on the needs of the DGCE.
Additionally, under the new regulation, the audit period can be extended up to 10 years under specific circumstances, including:
- Indications of violations during or after the original audit period.
- Information from third parties regarding potential violations.
- Requests from higher authorities such as the Director General or heads of regional offices.
New Free Trade Zone Customs Declarations
The DGCE has also implemented Regulation No. PER-4/BC/2025 to improve customs declarations related to goods entering or leaving Free Trade Zones (FTZs) in Indonesia.
These regulations affect the customs declaration process for the movement of goods in and out of FTZs, with the introduction of the Free Trade Zone Customs Declaration (PPFTZ).
What Does This Mean for Businesses?
The PPFTZ is a new digital customs declaration required for:
- Goods entering or leaving FTZs from/to areas within or outside the customs territory.
- Movement of goods between FTZs and other special economic zones.
Entrepreneurs and customs brokers are required to submit these declarations electronically via the Indonesia National Single Window (INSW) system. In case of technical issues with the system, submissions may be made in writing or via other exchange media provided by the customs office.
Additionally, businesses are allowed to amend or cancel PPFTZ data in certain situations, such as when goods are not unloaded or loaded as expected, or when a customs declaration is duplicated.
The regulation went into effect on March 31, 2025, and businesses operating in FTZs should ensure they comply with the new procedures to avoid delays or penalties in the release or entry of goods.
A Step Towards Streamlining Tax and Customs Procedures
Indonesia’s recent tax and customs updates are aimed at enhancing tax compliance, improving audit efficiency, and ensuring smoother operations for businesses involved in free trade zones. The penalty waiver offers timely relief to taxpayers, while the revised customs and excise audit guidelines will likely lead to a more structured approach to enforcement.
For businesses in FTZs, understanding the new PPFTZ requirements is essential for staying compliant and avoiding unnecessary disruptions in supply chain operations.
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