Applications to Waive Penalties Cannot Be Made Repeatedly: Here Are the Limits
Jakarta, CNBC Indonesia — The Directorate General of Taxes at the Ministry of Finance has set limits on the number of applications taxpayers may submit to reduce or waive administrative penalties.
Taxpayers may apply to reduce or waive administrative penalties for income tax and value added tax (VAT) no more than twice. For land and building tax (PBB), applications are limited to once.
“The limit is two applications for income tax and VAT. For PBB, it is only once,” said Meidijati, deputy director for General Tax Provisions and Procedures regulations and tax collection at the Directorate General of Taxes, during a briefing on administrative penalty relief and the global minimum tax on Wednesday (28 October 2026).
The provision is also set out in Finance Minister Regulation No. 118 of 2024, as amended by Finance Minister Regulation No. 71 of 2026.
Article 24 states that if a taxpayer submits a second application to reduce or waive an administrative penalty, it must be filed no later than three months after the date on which the Director General of Taxes’ decision on the first application was sent.
An exception applies where taxpayers can show that they were unable to meet the deadline because of circumstances beyond their control.
The programme is governed by Director General of Taxes Decree No. KEP-239/PJ/2026, dated 8 October 2026.
The level of penalty reduction or waiver depends on when the taxpayer carries out the action underlying the application.
For penalties related to late tax-return filing, tax-return amendments, and late tax payments or deposits, the relief is as follows:
100% for actions taken from 8 October to 31 December 2026.
50% for actions taken from 1 January to 31 March 2027.
25% for actions taken from 1 April to 30 June 2027.
Penalties eligible for relief include those for late filing of annual income tax returns for tax years up to 2025, and monthly tax returns showing underpayment for tax periods up to September 2026.
The relief also covers penalties for voluntary amendments to tax returns, late tax payments or deposits, and penalties listed in tax assessment letters and tax collection letters (STPs), including administrative fines for land and building tax.