Elimination of Administrative Penalties and Sunset Policy 2015


As we know, the national budget from tax revenue declared by the Directorate General of Taxation (DGT) was set at IDR 1.296 billion for 2015. Up until the first quarter, 13.65% of the target had been reached (tempo.com 1 April 2015). Furthermore, in 2015, the DGT has set this year to be the year of educating taxpayers.


Referring to the facts above, within this year, the DGT had issued two regulations regulating the elimination of qntlistrative penalties, i.e. Regulation Number 29/PMK.03/2015 and Regulation Number 91/PMK.03/2015, also known as the Sunset Policy 2015.


Below are the summaries of the abovementioned regulations:


Regulation Number PMK 29/PMK.03/2015 (Elimination of Administrative Penalties Art 19 Paragraph 1 General Tax Law)


Administrative Penalties that can be eliminated

In this regulation, qntlistrative penalties that can be eliminated by the DGT are on late tax underpayment payments as stated in the Tax Underpayment Assessment Letter, Additional Tax Underpayment Assessment Letter, and Revisions on Tax Decision, Tax Objection Decision, Tax Court Decision or Judicial Review Decision.



A taxpayer can submit the applications to the DGT via taxpayer’s registered office, with one of the conditions being the requirement to settle the principal tax payable amount.


Processing Time

The decision will be issued within six months upon receiving the application/request.


This applies to tax payables arising before 1 January 2015.


PMK 91/PMK.03/2015 (Elimination Penalties Art 7, 8 Paragraph 2, 8 Paragraph 2a, 9 Paragraph 2a, 9 Paragraph 2b or 14 Paragraph 4 General Tax Law)


Penalties that can be eliminated

Article 7: Penalties on late submissions of the Monthly Tax Returns or Annual Tax Returns


Article 8 Paragraph 2 and 2a: Penalties on underpayment arising from the revision in the Monthly Tax Returns or Annual Tax Returns (2%/Month)


Article 9 Paragraph 2a and 2b: Penalties on late payments stated in the Monthly Tax Returns or Annual Tax Returns


Article 14 Paragraph 4: Tax Invoices penalties caused by failure to complete, prepare, and report in a timely manner



  • Tax Payer submits Annual or Monthly Tax Return for the fiscal year of 2014 and earlier
  • Tax Payer receives Collection Letter (Surat Tagihan Pajak) from Tax Office
  • Taxpayer submits an application to the registered tax office using the format, as disclosed in the provided attachment
  • Applications can be submitted up to two times only
  • Applications will be processed within six months upon submission


Penalties that can be eliminated

  • Penalties from late submission of the Monthly or Annual Tax Returns for the fiscal year of 2014 and earlier
  • Penalties arising from tax underpayment stated on the revision of the Monthly or Annual Tax Returns that were conducted during 2015

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