On March 27, 2026, the Directorate General of Taxes (DGT) issued Director General of Taxes Regulation No. KEP-55/PJ/2026 concerning tax policy in relation to the implementation of the Coretax system, particularly regarding the submission of the 2025 Annual Individual Income Tax Return.

Key policy highlights include the following:

• Waiver of Penalty for Late Filing

Individual taxpayers are exempt from administrative penalty in the form of late filing penalties as stipulated under Article 7 paragraph (1) and Article 19 paragraph (3) of the KUP Law for the late submission of the 2025 Annual Individual Income Tax Return, provided that the return is submitted no later than 1 (one) month after the statutory filing deadline.

• Waiver of Interest Penalty for Late Payment

Individual taxpayers are also exempt from interest penalty for late payment as stipulated under Article 9 paragraph (2b) and Article 19 paragraph (3) of the KUP Law, provided that the tax return is submitted and the outstanding tax is paid no later than 1 (one) month after the filing deadline.

• Automatic Cancellation for Tax Collection Letter (STP)

The DGT will not issue a Tax Collection Letter (STP) in relation to the aforementioned administrative penalties. If an STP has already been issued, the relevant DGT Regional Office will cancel the sanction automatically (ex officio).

• Protection of Certain Taxpayer Status

The policy also confirms that the late submission of the 2025 Annual Individual Income Tax Return will not serve as a basis for revoking a taxpayer’s Certain Taxpayer status (as referred to in Article 17C of the KUP Law), nor as grounds for rejecting an application for such status.

KEP-55/2026 became effective as of March 27, 2026.