Directorate General of Taxes at Indonesia’s Ministry of Finance has updated provisions for individual taxpayers who are exempt from filing annual tax returns for income below the non‑taxable threshold, through Regulation of the Director General of Taxes No. PER‑3/PJ/2026.
Article 20 of PER‑3/PJ/2026 specifies two categories of individual taxpayers who are not required to submit an annual tax return:
1. Individual taxpayers who run a business or practice an independent profession, with income not exceeding the non‑taxable threshold.
2. Individual taxpayers who neither run a business nor practice an independent profession, and who earn income only from a single employer, with total annual net income not exceeding the non‑taxable threshold.
Under the previous regulation, exemptions were based solely on net income being below the non‑taxable threshold, without considering the source of income or the number of employers.
This means that even if income remains below the non‑taxable threshold, now individuals earning from more than one employer are now required to file an annual tax return under the new rules.
Tax Filing Deadline Extended
Although the Directorate General of Taxes has tightened the requirements for individual taxpayers exempted from filing annual tax returns, for the 2025 tax year it has granted a 30‑day grace period.
Normally, the deadline falls on March 31 each year. However, for the 2025 tax year, the filing period has been extended until April 30, 2026.
The Directorate General of Taxes explained that this extension also comes with a waiver of administrative fines for individual taxpayers who submit their annual tax return after March 31, 2026, as long as it is still within the extended period.
This policy was adopted out of concern that many taxpayers might be late in filing their returns, as the usual deadline coincides with the long holiday season for Nyepi and Eid al‑Fitr in March 2026.
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