Legal Framework for Relaxation of 2025 Annual Corporate Income Tax Return Sanctions

Ref: Director General of Taxes Decree No. KEP-71/PJ/2026

On 30 April 2026, the Directorate General of Taxes (DGT) issued KEP-71/PJ/2026 (“KEP-71”) stipulating the waiver of administrative sanctions for late filing and payment of the 2025 Annual Corporate Income Tax Return through the use of the Coretax Administration System.

Key Policy Highlights:

1. Waiver of Administrative Sanctions: Corporate Taxpayers are granted a full exemption from administrative penalties (including interest and fines) for the late submission of the 2025 Annual Corporate Income Tax Return and the late payment/settlement of Corporate Income Tax (Article 29). This applies as long as the obligations are fulfilled within one month after the statutory deadline.

2. Automatic Cancellation of Tax Bills (STP): The DGT will not issue Tax Collection Letters (STP) for these specific delays. In the event that an STP is generated automatically by the system, it will be cancelled ex officio by the Head of the respective Regional Tax Office.

3. Protection of Compliance Status: Importantly, any late submissions occurring within this relaxation period shall not act as a basis for denying a taxpayer that submits an application for ‘Certain Criteria Taxpayer’ (Compliant Taxpayer) status.

Effective Date: 30 April 2026