Ministry of Finance Issues New Rule on Tax Debt Payment

Jakarta: The Ministry of Finance has issued a new regulation regarding the mechanism for paying tax debts to make it easier for taxpayers to fulfill their tax obligations.

The rule is set out in Minister of Finance Regulation (PMK) Number 71 of 2026, which amends PMK Number 118 of 2024 and took effect on October 2, 2026.

Director General of Taxes Bimo Wijayanto explained that previously, tax debt payments were calculated proportionally alongside administrative sanctions. Under this new provision, payments will first be applied to settle the principal tax debt.

"Through this adjustment, taxpayer payments can first be used to settle the principal tax debt, allowing taxpayers to clear their principal obligation while also utilizing facilities for the reduction or waiver of administrative sanctions in accordance with applicable regulations," said Bimo in a press statement in Jakarta, as cited by Antara on Tuesday, October 13, 2026.

Additionally, PMK 71/2026 refines the timeframe for submitting responses to the findings of objection reviews. The updates also clarify provisions on the reduction or waiver of administrative sanctions.

The regulation also emphasizes that administrative sanctions arising from objection, appeal, or judicial review processes are not eligible for reduction or waiver through the mechanisms stipulated in the regulation.

Not a tax amnesty

Nevertheless, the Director General of Taxes emphasized that these regulatory refinements do not constitute a tax amnesty policy and do not eliminate the obligation to settle the principal tax debt.

Facilities to reduce or waive administrative sanctions remain available, subject to applicable requirements and conditions. From a fiscal perspective, refining this policy is expected to accelerate settlement of outstanding tax principal and strengthen voluntary taxpayer compliance.

Bimo said these improvements are intended to help taxpayers better fulfill their obligations while supporting a fairer, more effective tax system.

“This policy is also expected to help maintain the cash flow resilience of taxpayers, particularly micro, small, and medium enterprises (MSMEs), thereby supporting the continuity and growth of their businesses,” he said.