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The Indonesian Directorate General of Taxes (DGT) has introduced several key regulatory updates aimed at easing compliance for taxpayers and improving the efficiency of customs and excise audits. Notably, the DGT has issued a new decision that waives penalties for individual taxpayers who were unable to meet tax obligations due to the timing of national holidays. Alongside this, new regulations have been put in place to refine customs audit procedures and streamline customs declarations for free trade zones (FTZs). These updates are designed to enhance compliance and ease the burden on taxpayers and businesses alike.
Penalty Waiver for Individual Taxpayers
The DGT’s recent decision, encapsulated in Decision No. KEP-79/PJ/2025, brings relief to individual taxpayers who missed the deadline for paying Article 29 income tax or submitting their annual tax returns for the tax year 2024. This waiver has been introduced due to the deadlines falling during national holidays, including Nyepi Day (Saka New Year 1947) and Eid al-Fitr 1446 AH, which impacted many taxpayers’ ability to meet these obligations on time.
Details of the Waiver:
- Tax Obligation:
- Payment of Article 29 Income Tax for 2024 – Original Deadline: March 31, 2025 | Extended Deadline (Penalty-Free): April 11, 2025
- Submission of Annual Individual Income Tax Return for 2024 – Original Deadline: March 31, 2025 | Extended Deadline (Penalty-Free): April 11, 2025
- Implementation of the Waiver: No administrative penalties will be imposed for payments or returns made between March 31, 2025, and April 11, 2025. The tax authorities will not issue a tax collection letter for these late submissions.
This waiver aims to accommodate taxpayers who were unable to meet the deadlines due to unavoidable circumstances, offering them relief without the financial burden of penalties.
New Customs and Excise Audit Procedures
The Indonesian Directorate General of Customs and Excise (DGCE) has also updated its regulations regarding customs and excise audits. Regulation No. PER-2/BC/2025 sets the technical guidelines for conducting these audits, providing a clearer and more structured approach to customs compliance. This new regulation is a significant update to the previous framework and aims to enhance the efficiency and accuracy of audits conducted by the DGCE.
Key Changes in Audit Procedures:
- General Audit Period: The period for general audits has been extended to 21 months from the issuance of the assignment letter.
- Special and Investigation Audits: The periods for these types of audits will now be determined based on the needs of the DGCE.
- Audit Period Extensions: In certain cases, such as when violations are suspected beyond the normal audit period, the audit period can be extended up to 10 years. Reasons for extensions include indications of violations, new information from third parties, or orders from higher authorities.
This change is intended to give the DGCE more flexibility in conducting thorough audits, particularly in complex cases, and to ensure better oversight of customs and excise practices.
Free Trade Zone Customs Declarations (PPFTZ)
In line with Indonesia’s free trade zone (FTZ) regulations, the DGCE has issued Regulation No. PER-4/BC/2025, which governs the customs declarations (PPFTZ) related to goods entering or leaving a free trade zone. This regulation is a follow-up to the Minister of Finance Regulation No. 113 of 2024 and aims to ensure smoother customs processes for goods within FTZs.
Key Highlights of the PPFTZ Regulation:
- Scope of PPFTZ: The regulation defines the customs declarations for the entry and exit of goods within FTZs, including:
- Entry of goods from outside Indonesia’s customs territory to an FTZ.
- Movement of goods between FTZs or to bonded storage.
- Release of goods from FTZs to locations within or outside Indonesia’s customs territory.
- Submission Process: PPFTZ declarations must be submitted electronically via the Indonesia National Single Window system, though physical submission is allowed in case of system malfunctions.
- Amendments and Cancellations: Entrepreneurs and customs brokers (PPJK) can request amendments to PPFTZ data if errors occur. Amendments must be processed within three working days of submission. Cancellations can be requested in specific circumstances, such as errors in the declaration or force majeure events.
This regulation is aimed at enhancing the clarity and efficiency of FTZ transactions and ensuring compliance with the customs laws governing free trade zones in Indonesia.
Conclusion: A Step Forward in Tax and Customs Regulations
Indonesia’s new tax and customs regulations reflect the government’s ongoing efforts to streamline compliance processes and enhance efficiency in the taxation and customs sectors. The penalty waiver for individual taxpayers provides much-needed relief, particularly for those affected by national holidays, while the updates to audit procedures and free trade zone customs declarations are expected to improve the accuracy and speed of customs transactions.
Taxpayers and businesses operating in Indonesia should familiarize themselves with these new regulations to ensure compliance and take advantage of any relief measures available. As these updates continue to unfold, stakeholders will need to stay informed to navigate the evolving regulatory landscape effectively.
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