Tax Chief Tightens Conditions for Income Exempt from Annual Tax Return Filing

The Directorate General of Taxes (DJP) is tightening regulations on exemptions from the obligation to file annual tax notifications (SPT) for taxpayers whose income falls below the Non-Taxable Income threshold (PTKP). The policy is outlined in Director General of Taxes Regulation Number PER-3/PJ/2026 on Procedures for Submission, Receipt, and Processing of SPT, which was established and has been in effect since 16 March 2026. Article 20 of this new regulation provides more detailed criteria for taxpayers exempt from filing SPT, updating the previous provisions in Article 112 of Director General of Taxes Regulation Number PER-11/PJ/2025. There are two groups of individual taxpayers with income below PTKP. The first comprises those engaged in business activities or freelance work who receive or obtain income not exceeding PTKP. The second includes those not engaged in business or freelance work who receive or obtain income from a single employer, with net income in one tax year not exceeding PTKP. “Certain Income Tax taxpayers are exempted from the obligation to submit a tax notification,” as stated in paragraph 1 of PER-3/2026. Under the previous provisions, the criteria for exempted certain income taxpayers were individual taxpayers who, in one tax year, received or obtained net income not exceeding PTKP, or individual taxpayers who did not conduct business activities or perform freelance work. With this change, if a taxpayer’s income comes from more than one employer and the net income in one tax year does not exceed PTKP, they must still file an SPT. Meanwhile, the provisions regarding certain income taxpayers exempted from filing monthly SPT for income tax under Article 25 remain unchanged. The criteria are individual taxpayers who, in one tax year, receive or obtain net income not exceeding PTKP, or individual taxpayers who do not conduct business activities or perform freelance work.