The government through the Ministry of Finance has issued a Ministry of Finance Regulations (PMK) Number 81 Year 2024. The issuance of this regulation has several objectives, which include being the legal basis of the implementation of the new tax administration system developed by the Directorate General of Taxes, known as the Core Tax Administration System (CTAS) or Coretax. Furthermore, PMK 81/2024 also acts as an update toward a more transparent, effective, efficient, and accountable tax administration system.
By keeping in mind several integrated business processes in CTAS, the issuance of PMK 81/2024 also both adapts and changes tax laws and regulations, including in regard to the registration of Taxpayers and confirmation of Taxable Entrepreneurs, tax payment, tax filing, as well as tax administrative services.
In general, there are 7 (seven) main subjects that are discussed in PMK 81/2024, spread across 484 Articles and 11 Chapters, which Taxpayers should know and understand.
Procedures for the Implementation of Tax Rights and Fulfillment of Tax Obligations and the Electronic Issuance, Signing, and Delivery of Tax Decisions or Rulings
Following the provisions in Article 4, the electronic tax rights implementation and tax obligations fulfillment is done through the Taxpayer Portal, website, or other CTAS-integrated applications, as well as through the Contact Center. However, Taxpayers should still implement their tax rights and fulfill their tax obligations directly or through postal services to the Tax Office if facing an issue following the provisions in the tax law and regulations.
Following the implementation of CTAS in 2025, Taxpayers can create and activate their Taxpayer account through the Taxpayer Portal or by directly activating it in Tax Offices. Taxpayers will then use the account to fulfill several tax administrative needs.
Taxpayers can also fulfill their tax obligations through electronic means and should deliver their rights and obligations in the form of an Electronic Document. The Electronic Document must be signed by the Taxpayer using an electronic signature, which consists of certified electronic signature and a non-certified electronic signature.
Furthermore, tax rights implementation and tax obligations fulfillment by the Taxpayer will result in the issuance of an electronic decree by the Directorate General of Taxes through the Taxpayer Account and/or the Taxpayer’s electronic postal in the form of a Tax Billing Letter, Tax Assessment Letter, Tax Warning Letter, Tax Reprimand Letter, Tax Correction Decision Letter, Tax Objection Decision Letter, and other decision letters.
Procedures of Taxpayer Registration, Confirmation of Taxable Entrepreneurs, and Land and Building Tax Object Registration
Firstly, PMK 81/2024 integrated the provision regarding Taxpayer registration where the Tax Office Head is eligible to issue a Taxpayer Identification Number by position based on administrative research results. Additionally, the Tax Office Head is also authorized to conduct data changes for Individual Taxpayers in the case of different data and/or information when the real situation differs from the taxpayer data. The Tax Office Head can also determine whether or not a Taxpayer is Non-Effective (NE) either by the Taxpayer’s request or by position, as well as the deletion of the Taxpayer Identification Number for Individual Taxpayers.
PMK 81/2024 also regulates the procedures for Corporate Taxpayer registration, Undivided Inheritance Taxpayers from where the inheritance is from, and Governmental Institution Taxpayers.
Article 60 regulates the obligations of a Confirmed Taxable Entrepreneur for entrepreneurs conducting delivery and/or export. The Tax Office Head can confirm Taxable Entrepreneurs by position in the case of entrepreneurs not fulfilling their business filing. Taxable Entrepreneurs' Confirmation will be done based on audit or administrative research results. In addition, the Directorate General of Taxes now has the ability to disable the access to Tax Invoice creation for Taxable Entrepreneurs under the suspicion of misusing their Taxable Entrepreneurs Confirmation. The Tax Office Head can then invoke the confirmation based on request or by position.
Last, Article 71 consists of the procedures regarding the registration of Land and Building Tax Objects. Taxpayers are obligated to report the registered object using an electronic Tax Object Notification Letter (SPOP) to the Directorate General of Taxes through the Taxpayer Portal. The Directorate General of Taxes can then issue a Payable Tax Notification Letter and/or a Land and Building Tax Assessment Letter.
Procedures for Tax Payment, Refund on Non-payable Tax Overpayment, Interest Compensation, and Refund on Tax Overpayment
Through PMK 81/2024, the government made changes to the due date for payable tax payments. Taxpayers should pay their taxes by the 15th of the next month after the tax period is over at the latest. This change is applicable for certain kinds of taxes, as follows:
Article 4(2) Income Tax;
Article 15 Income Tax;
Article 21 Income Tax;
Article 22 Income Tax;
Article 23 Income Tax;
Article 25 Income Tax;
Article 26 Income Tax;
Income Tax on petroleum and/or natural gas from upstream petroleum and/or natural gas business activities paid each Tax Period;
Value Added Tax payable on the use of intangible Taxable Goods and/or Taxable Services from outside the Customs Area;
Payable VAT on Self-Building Activities;
Stamp Duty withheld by Stamp Duty Collector;
Sales Tax; and
Carbon Tax as withheld by Carbon Tax Withholder.
The deadline date for payable VAT and Sales Tax on Luxury Goods payments within 1 (one) Tax Period should be paid by the Taxpayer or the VAT withholder by the end of the next month after the Tax Period ends at the latest and before the delivery of the VAT Monthly Returns.
If the tax payment due date coincides with a holiday including Saturday, Sunday, national holidays, days off for holding the General Election, or national collective leave, the payment can be made on the next working day.
PMK 81/2024 also further regulates a new mechanism named Tax Deposit which can be used for tax payments. The payment process in the Tax Deposit system will include a bookkeeping process, where the Tax Deposit can be filled in 3 (three) ways, including:
Payment through the national revenue system electronically,
Bookkeeping application;
Application for the remaining excess tax payment or remaining interest compensation after being calculated with Tax Debt
Procedures Submitting and Processing Notification Letters
In summary, Taxpayers are obligated to complete their Tax Returns with complete, truthful, and clear information. The issuance of PMK 81/2024 further asserts the obligation for Individual Taxpayers to file their Annual Income Tax Returns by 3 (three) months after the end of a Tax Year, and for Corporate Taxpayers to file them by 4 (four) months after at the latest. Furthermore, Taxpayers who are withholders of Income Tax are obligated to report:
Income Tax Article 4 paragraph (2) that is deducted, collected, paid by oneself, and/or deposited by oneself;
Income Tax Article 15 that is deducted, paid by oneself, and/or deposited by oneself;
Income Tax Article 21 that is deducted;
Income Tax Article 22 that is collected and/or deposited by oneself;
Income Tax Article 23 that is deducted;
Income Tax Article 25 that is paid by oneself; and/or
Income Tax Article 26 that is deducted and/or collected
By 20 (twenty) days after the end of a Tax Period.
Furthermore, Taxable Entrepreneurs are obligated to report the VAT Returns or VAT and Sales Tax on Luxury Goods by the end of the next month after the Tax Period ends at the latest. If the tax filing due date coincides with a holiday including Saturday, Sunday, national holidays, days off for holding the General Election, or national collective leave, the payment can be made on the next working day.
Procedures for Providing Tax Administration Services
In the case of tax administration services, there are 5 (five) points that are regulated in the PMK 81/2024. First, Taxpayers conducting asset transfer in the context of a merger, acquisition, expansion, or takeover of a business must use market value. However, Taxpayers can use the book value if they request, and is then approved by the Directorate General of Taxes.
Next, the government will also provide a variety of Income Tax facilities in the case of investments in certain business sectors and/or in certain areas. Following that is the provision of net income reduction facilities for new capital investment or business expansion in certain business sectors that are labor-intensive industries. Fourth, the provision of gross income reduction for certain research and development activities in Indonesia. Fifth, certain expertise criteria and procedures for imposing income tax for Foreign Citizens.
This part also regulates the procedures for recording and procedures for organizing bookkeeping for tax purposes. Individual Taxpayers who do business or are freelancers, as well as Corporate Taxpayers, are obligated to conduct bookkeeping. Whereas tax recording is done by said Individual Taxpayers with Net Income Calculation Norm (Norma Perhitungan Penghasilan Neto/NPPN), Individual Taxpayers who are not doing business or freelancing, and Individual Taxpayers fulfilling certain criteria.
Technical Provisions for the Implementation of the Core Tax Administration System
Article 464 of PMK 81.2024 regulates that the exercise of tax rights and fulfillment of tax obligations for Taxpayers on one or more business places will be centralized by using the Central Taxpayer Identification Number registered following the place of residence or position of Taxpayers from the January 2024 Tax Period and 2025 Tax Year for the Land and Building Tax.
Further provisions regarding this matter will then be determined later by the Directorate General of Taxes.
Examples of Document Format and Example of Calculation, Collection, and/or Reporting
PMK 81/2024 contains 55 attachments which show examples of document formats that Taxpayers can use to support their tax rights exercise and tax obligations fulfillment. Not only that, but PMK 81/2024 also showcases the calculation, collection, and/or reporting of payable tax examples.
Taxpayers can access this link which will be directed to an attachment of the document format examples.
Further Provisions to be Formulated by the Directorate General of Taxes
By referring to Article 464 of PMK 81/2024, there are several provisions that still needs to be revised and adapted further by the Directorate General of Taxes to ensure that tax administration runs smoothly. In total, there are 24 provisions to be discussed and regulated further by the Directorate General of Taxes:
Types of implementation of tax rights and fulfillment of tax obligations electronically and/or other than electronically and procedures for submitting documents and channels used in the framework of implementing tax rights and fulfillment of tax obligations
Follow-up of the implementation of taxpayer rights and fulfillment of tax obligations, procedures for issuing decisions in electronic form, electronic documents, and procedures for submitting decisions and electronic documents
Procedures for implementing tax rights and fulfillment of tax obligations and issuing decisions in the event of force majeure or other reasons based on considerations by the Directorate General of Taxes
Technical instructions for implementing taxpayer registration and granting Taxpayer Identification Numbers, data changes, taxpayer transfers, determining inactive taxpayers, and deleting Taxpayer Identification Numbers
Technical instructions for implementing business reporting, Taxable Entrepreneurs’ confirmation, and access to making tax invoices
Technical instructions for implementing extensification activities for granting NPWP and/or Taxable Entrepreneurs' confirmation
Technical instructions for implementing the determination of the place of residence or domicile of taxpayers
Technical instructions for implementing Taxable Entrepreneurs criteria whose access to making tax invoices is disabled
Technical instructions for implementing the revocation of Taxable Entrepreneurs’ confirmation by the office for Taxable Entrepreneurs who no longer meet the requirements as Taxable Entrepreneurs
Form and format of Tax Object Notification Letter
Taxpayers in certain areas
Procedures for implementing an electronic tax payment system
Form, content, and procedures for filling out the Tax Payment Slip form
Procedures for issuing proof of transfer
Form, content, and procedures for filling out the Tax Returns (Article 164); information and/or documents that must be attached to the Tax Returns and the format and means of submitting information and/or documents that must be attached to the Tax Returns (Article 165)
Procedures for submitting Tax Returns, notification of extension, and research and recording of Tax Returns
Procedures for certain Income Tax Taxpayers who are exempt from the obligation to report Tax Returns
Procedures for researching the fulfillment of Income Tax Deposit obligations by Tax Offices
Procedures for exemption from payment and issuance of Income Tax Exemption Certificates (SKB) on income from the transfer of rights to land and/or buildings or sale and purchase agreements for land and/or buildings and their amendments
Procedures and procedures for collecting Income Tax Article 22 in connection with payments for the transfer of goods and activities in the field of import, and export of coal mining commodities, metal minerals, and non-metal minerals by bodies or individuals holding mining business permits, or business activities in other fields and procedures for issuing Exemption Certificates Article 22 Income Tax
Form, content, and procedures for filling in, and submitting Income Tax Article 25 installment calculation reports
Withholding of Income Tax Article 26 on income received or obtained by foreign taxpayers other than permanent establishments on income in the form of profits from the sale of shares
Implementation of withholding of Income Tax Article 26 on income in the form of insurance premiums and reinsurance premiums paid to insurance companies abroad
Procedures method of submitting and issuing decisions regarding the use of book value for the transfer and acquisition of assets in the context of a merger, acquisition, expansion, or takeover of a business
Legal Basis:
The Ministry of Finance Regulations Number 81 Year 2024 Regarding Scope Of Provisions Related To The Implementation Of The Core Tax Administration System
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