Finance Ministry Issues New Rules on Tax Debt Payments

Jakarta (ANTARA) — The Finance Ministry has issued new rules on the mechanism for paying tax debts to make it easier for taxpayers to meet their tax obligations.

The rules are set out in Finance Ministry Regulation (PMK) No. 71 of 2026, which amends PMK No. 118 of 2024 and took effect when it was promulgated on 2 October 2026.

Director General of Taxes Bimo Wijayanto said in a press statement in Jakarta on Monday that previously, payments towards tax debt were allocated proportionally between the principal debt and administrative penalties.

Under the new provisions, payments will first be applied to settle the principal tax debt.

“With this adjustment, taxpayers’ payments can first be used to settle the principal tax debt, giving them the opportunity to clear the principal amount while also taking advantage of facilities to reduce or waive administrative penalties in accordance with the applicable rules,” Bimo said.

PMK 71/2026 also revises the deadline for submitting a response to the findings of an objection review. It further clarifies the provisions on reducing or waiving administrative penalties.

The regulation also stresses that administrative penalties arising from objection, appeal or judicial review proceedings cannot be submitted for reduction or waiver through the mechanism set out in the regulation.

However, the Director General of Taxes emphasised that these revisions do not constitute a tax amnesty and do not remove the obligation to repay the principal tax debt.

Facilities to reduce or waive administrative penalties will remain available, subject to the applicable requirements and provisions.

From a fiscal perspective, the policy changes are expected to accelerate repayment of outstanding principal tax debt and strengthen taxpayers’ voluntary compliance.

Bimo said the revisions were intended to help taxpayers settle their obligations more effectively while supporting a fairer and more efficient tax system.

“The policy is also expected to help maintain taxpayers’ cash-flow resilience, particularly among micro, small and medium-sized enterprises (MSMEs), thereby supporting the continuity and growth of their businesses,” he said.