Key Highlights of PER-11/PJ/2025

In May 2025, the government issued the Directorate General of Taxes Regulation Number PER-11/PJ/2025, concerning Provisions on the Reporting of Income Tax, Value-Added Tax, Luxury Goods Sales Tax, and Stamp Duty in the Context of Implementing the Core Tax Administration System.

This regulation was issued to provide legal certainty, administrative ease, improved services, and to support the implementation of the updated core tax administration system (Coretax). Therefore, technical provisions regarding the reporting of Income Tax, Value Added Tax (VAT), Sales Tax on Luxury Goods (STLG), and Stamp Duty must be adjusted accordingly.

READ: DGT Updates VAT Periodic Tax Return Rules Through PER-11/PJ/2025

This regulation consists of 147 articles divided into ten chapters, structured as follows:

1. Chapter I contains general provisions.
2. Chapter II covers the format, content, and procedures for completing the periodic Income Tax return.
3. Chapter III outlines the format, content, and procedures for completing the periodic Value Added Tax (VAT) return.
4. Chapter IV addresses the format, content, and procedures for completing the periodic Stamp Duty return.
5. Chapter V discusses the format, content, and procedures for completing the annual Income Tax return.
6. Chapter VI regulates the format, content, procedures for completion, and submission of the Income Tax Article (ITA) 25 installment calculation report for banks, state-owned enterprises (BUMN), regional owned enterprises (BUMD), publicly listed taxpayers, and other taxpayers.
7. Chapter VII covers the submission, receipt, and processing of tax returns.
8. Chapter VIII contains miscellaneous provisions.
9. Chapter IX outlines transitional provisions, and
10. Chapter X covers the closing provisions.

PER-11/PJ/2025 revokes 25 equivalent regulations and amends two others. This regulation also serves as a derivative rule of Minister of Finance Regulation (PMK) Number 81 of 2024 concerning Tax Provisions for the Implementation of the Core Tax Administration System.

READ: Reform of Tax Reporting Mechanism: 25 Previous Regulations Officially Revoked

Periodic Income Tax Returns

Concerning Periodic Income Tax Returns, PER-11/PJ/2025 stipulates that there are generally two types of periodic returns: Periodic Income Tax Return ITA 21/26, and Unification Periodic Income Tax Return.

The ITA 21/26 Return is used to report the withholding of Income Tax Article (ITA) 21 or ITA 26 in connection with income from employment, services, or activities performed by individuals. Meanwhile, the Unified Return is used to report the withholding or collection of Income Tax Article (ITA) 22, ITA 23, ITA 4(2), and ITA 15.

Under this regulation, withholding slips for ITA 21/26 are not required if there is no income payment. However, there are several conditions under which the income payer must still prepare the withholding slip for ITA 21/26, including:

• There is an income payment, but no withholding is made because the income is below the non-taxable income threshold (PTKP).
• The amount of withheld tax is zero due to the existence of an exemption certificate or application of a 0% rate.
• The income is eligible for an ITA 21 tax facility borne by the government.
• The income benefits from other ITA 21 tax facilities.
• The ITA 26 withholding amount is zero under a tax treaty.

READ: DGT Changes Format of Income Tax Article 21/26 Withholding Slips Through Regulation PER-11/PJ/2025

Periodic VAT Return

In general, PER-11/PJ/2025 maintains the same provisions as the previous regulation (PER-11/PJ/2022). However, it updates the deadline for uploading invoices in the e-invoice (e-faktur) application to the 20th of the following month after the invoice issuance date.

Additionally, the regulation provides for the manual issuance of tax invoices in hard copy form in the event of a force majeure. Moreover, Article 135 stipulates that for the tax periods of January through March 2025, if there is incomplete information or details on a tax invoice, the invoice will still be deemed complete as long as it has been uploaded to the e-Faktur system.

Annual Corporate Income Tax Return

With the implementation of Coretax, starting from the 2025 fiscal year and onward, corporate taxpayers and individual taxpayers are required to file their Annual Income Tax Returns through the Coretax application.

Within the Coretax system, the Individual Annual Income Tax Return (ITA) is no longer categorized into Form 1770SS, 1770S, or 1770. Instead, the attachments for the Individual Annual Income Tax Return in the Coretax application consist of the following:

• Attachment 1: Includes assets and liabilities at the end of the fiscal year, a list of dependent family members, net domestic income from employment, and a list of Income Tax withholding/collection slips.
• Attachment 2: Includes income subject to final income tax, income not subject to tax, and net foreign income.
• Attachment 3: Contains financial statement reconciliations.
• Attachment 4: Includes the calculation of next year’s ITA 25 installments and the calculation of income tax payable by the taxpayer and their spouse.
• Attachment 5: Contains the calculation of fiscal loss compensation, deductions from net income, and deductions from income tax payable.

Similar to the Individual Annual Income Tax Return, the Corporate Annual Income Tax Return also consists of a main form and supporting attachments. However, under PER-11/PJ/2025, the Corporate Income Tax Return no longer consists of 6 attachments, but is now expanded to 14 attachments, detailed as follows:

• Attachment 1: Financial statement reconciliation
• Attachment 2: Ownership list
• Attachment 3: List of income tax withheld/collected by other parties
• Attachment 4: Income subject to final income tax and income not considered as taxable income
• Attachment 5: Summary of gross revenue
• Attachment 6: Income tax installments for the current fiscal year
• Attachment 7: Calculation of fiscal loss compensation
• Attachment 8: Calculation of reduced corporate income tax rate for resident corporate taxpayers under Article 31E(1) of the Income Tax Law
• Attachment 9: List of fiscal depreciation and amortization
• Attachment 10A: List of transactions influenced by special relationships (related-party transactions)
• Attachment 10C: Declaration of transactions with residents of Tax Haven Countries
• Attachment 10D: Summary of master file and local file documentation
• Attachment 11A: Breakdown of specific expenses
• Attachment 11B: Calculation of deductible interest expenses for income tax purposes
• Attachment 11C: Report on foreign private debt
• Attachment 12A: Calculation of Income Tax Article (ITA) 26 Paragraph (4)
• Attachment 12B: Notification of reinvestment of taxable income after tax by permanent establishments
• Attachment 13A: List of investment incentives
• Attachment 13B: List of additional gross income deductions
• Attachment 13C: List of corporate income tax reduction facilities
• Attachment 14: Use of retained earnings for infrastructure development and procurement

This Regulation Update article was prepared by the Compliance Team of MUC Consulting. For a more detailed understanding of the changes, please consult with the MUC Consulting Compliance Team. (ASP/KEN)