5 Million Taxpayers Yet to File Annual Returns on Coretax, Here Are the Challenges

Jakarta, CNBC Indonesia - The Director General of Taxation at the Ministry of Finance, Bimo Wijayanto, disclosed that around 5 million out of approximately 14 million taxpayers have yet to report their annual tax returns.

To address this, the authority is providing leniency for individual taxpayers who are late in submitting their annual tax notification letters (SPT) for the 2025 period. This policy takes the form of an exemption from administrative penalties until 30 April 2026.

Bimo emphasised that the delay in reporting is not entirely the fault of the taxpayers. This is because, by regulation, the reporting deadline is still set until 31 March 2026. Therefore, it is not uncommon for the authority to take proactive measures by providing reporting assistance.

“This is not their fault either. They can still wait until 31 March by rule, by the existing regulations. But because we also see, we also acknowledge that we must take the initiative,” he stated.

Even during the Eid holiday, Bimo revealed that annual tax return submissions continued at a significant rate, with around 10,000 to 20,000 returns per day. This was due to several regional offices or kanwil that remained operational to provide tax reporting assistance, such as in Papua, Maluku, and West Papua.

“Because the tax officers there did not go home for Eid due to high ticket prices. They requested their leave after Eid; they initiated it themselves to open and serve. They report to me every day. So we are striving to provide the best service to our taxpayers. We take the initiative, we assist,” he said.

Nevertheless, Bimo acknowledged that the process of improving compliance is not easy. The vast expanse of the territory and the diverse levels of taxpayer understanding pose significant challenges.

“Indeed, it requires a process; we acknowledge it, and we will continue to simplify it so that understanding can be faster,” he stated.