Constitutional Court Declines Judicial Review on Income Tax on Pension & Severance

JAKARTA. The Constitutional Court (Mahkamah Konstitusi/MK) has rejected a judicial review petition concerning Income Tax (PPh) on pensions and severance pay.

The panel of judges, led by Chief Justice Suhartoyo, found the petition to be unclear or vague (obscuur libel).

The Court also concluded that the petitioner lacked precision in drafting the application, as evidenced by inconsistencies and errors in citing the provisions of the law under review.

“Due to these inconsistencies and errors, the petition becomes unclear or vague in terms of which articles or provisions are actually being challenged,” stated the ruling, as quoted from the official decision document on Thursday (October 30).

Previously, the judicial review petition, Case No. 174/PUU-XXIII/2025, was filed by an individual taxpayer.

In the petitum, the petitioner requested the Court to declare Article 4(1) and Article 17 of Law No. 7 of 1983 on Income Tax, as most recently amended by Law No. 7 of 2021, conditionally unconstitutional. (ASP/KEN)