Eight Tax Policies for Indonesia in FY2026
2FY 026 is the first year since the Secretary of the TreasurySeptember 2025In the year of the first full year of tax policy after his inauguration, he explicitlyNo new taxes or rate increases will be introduced in 2026, although the tax revenue target is set at2357.7 trillion rupiah, up from 2,189.3 trillion in 20257.69%. He stated that only inSustained economic growth in excess of 51 TP3T and preferably 61 TP3TThe Government will only consider raising the tax rates when the purchasing power of the public has increased significantly.
For value-added tax (PPN).No adjustment plan at this timeThe government will not have the space to assess the rise and fall unless economic growth breaks through 6%. Previously an upward revision was rumored for late 2024, but early 2025 was only for theLuxury goods are subject to the 12% tax rate; on levy optimization, the Ministry of Finance will rely on theCoretax systemImprove administrative efficiency and compliance. The system has been in place since early 2025 and centralizes tax services, monitoring and collections.Starting in 2026, all taxpayers will be required to file annual tax returns through Coretax (SPT), covering both individual and business 2025 tax forms.
Global Minimum Tax (GMT) to be fully implemented by 2026The following is a summary of the information provided by the Minister of Finance in his report to the General Assembly. In accordance with the regulations of the Minister of Finance, forMultinationals with consolidated gross revenues ≥ 750 million euros and an effective tax rate of less than 151 TP3T in the place of operation, a catch-up tax will be levied. The computerized system includesproceeds are incorporated intoRule (IIR), the Domestic Minimum Make-Up Tax (QDMTT) and the Low Tax Payment Rule (UTPR)In 2025, the IIR and QDMTT have been piloted and prepared, and in 2026, the UTPR will be implemented and the payment of the catch-up tax for the 2025 tax year will be enforced (the "UTPR").December 31, 2026 at the latest).
Automatic Exchange of Financial Account Information (AEOI) to be expanded in 2026, covering specific e-money products and central bank digital currencies, and preventing duplicate reporting by CRS and the Crypto Asset Reporting Framework (CARF). The move was made to comply with theOECD Standards for Digital Currencies and Crypto Assets for Relevant International Agreements, requiring financial institutions to improve account identification, exemption categories, and reporting information; and for the e-commerce withholding tax, originally scheduled for implementation in 20250.51 TP3T income tax (PPh 22) for e-commerce platform merchants held off until economic growth reaches 61 TP3TThe
Individual tax credit extended through 2026: Salary not exceeding 10 million rupiahLabor-intensive and tourism employeesPPh 21 is available at the expense of the government (DTP).2026 is expected to benefit2.22 million workers, with a budget of 1.28 trillion rupiah (1.7 million labor-intensive, with a budget of 800 billion; 552,000 hotels and restaurants, etc., with a budget of 480 billion);VAT relief on house purchases extended to end of 2027: 100% PPN Housing (including condominiums) underwritten by the government, benefiting about 40,000 units annually, is intended to maintain purchasing power and boost the economy;Adjustment of the Tax Holiday model: will continue to be implemented, but because GMT requires a minimum 15% corporate income tax, the new model will no longer be a full exemption from the 22% tax rate, but will provide alternative incentives on a 15% basis to avoid subsidizing the finances of other countries. The related new PMK is under development.
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