Cooperative Compliance
Cooperative compliance is a tax supervision approach based on real-time dialogue between the tax authority and large taxpayers, running from the start of the tax year up to the filing of the Annual Tax Return. It shifts interaction from ex post audits to proactive consultation: material corrections are discussed and agreed earlier, lowering compliance costs, reducing disputes, and improving revenue certainty. In Indonesia, the Directorate General of Taxes (DJP) is integrating this scheme as one pillar of its 2026 revenue strategy, focused on corporate taxpayers with significant revenue risk.
This article is for education, not tax advice.
Example
An oil and gas company in the cooperative compliance scheme meets quarterly with DJP to discuss large transactions, transfer pricing treatment between affiliates, and current-year income estimates. Before filing the 2026 Annual Return, both parties agree on positions for material issues such as oil and gas asset depreciation, reducing post-audit correction risk to a minimum.
Source: OECD Co-operative Compliance Framework; DJP 2026 strategy (Bimo Wijayanto)