Summary
The Directorate General of Taxes (DGT) of Indonesia has officially extended the filing deadline for corporate annual income tax returns (SPT Tahunan PPh Badan) for fiscal year 2025. The relaxation is set out in Director General of Taxes Decision Number KEP-71/PJ/2026, granting additional time until 31 May 2026. Throughout the extension period, administrative penalties for late filing are waived, including penalties for outstanding PPh Article 29 settlements.
Background
The standard deadline for corporate annual income tax returns is four months after the end of the fiscal year. For fiscal year 2025, that meant end of April 2026. The relaxation accompanies the transition from the legacy DJP Online portal to the new Coretax system. DGT positions the additional month as a measure to keep compliant corporate taxpayers from incurring penalties while the system continues to stabilise.
As of 3 May 2026, DGT recorded 13.09 million annual income tax returns for fiscal year 2025 filed by taxpayers. Corporate filings, however, lagged expectations. The authority opted for an administrative policy route rather than enforcing penalties on taxpayers acting in good faith.
Substance of KEP-71/PJ/2026
KEP-71/PJ/2026 waives administrative penalties under Article 7 paragraph (1) of Law Number 6 of 1983 on General Provisions and Procedures of Taxation (UU KUP) so long as the corporate annual tax return is submitted no later than 31 May 2026. The penalty in question is the IDR 1,000,000 fine for late corporate annual return filing.
The policy also covers waiver of administrative penalties for late payment or remittance of PPh Article 29, provided settlement occurs within the same period. PPh Article 29 is the year-end underpayment of corporate income tax that must be settled before the annual return is filed, pursuant to Article 29 of Law Number 7 of 1983 on Income Tax, as last amended by the Harmonisation of Tax Regulations Law (UU HPP).
DGT Statement
The DGT Director of Counselling, Services, and Public Relations emphasised that the relaxation does not eliminate the underlying filing obligation. Corporate taxpayers must still submit returns and settle taxes due. Only administrative penalties on late filing are waived, not the principal tax. DGT also reminded that returns not filed after 31 May 2026 will revert to full penalty exposure under UU KUP.
Implications for Corporate Taxpayers
For entities that could not complete their returns due to Coretax migration friction, KEP-71/PJ/2026 provides breathing room. Tax practitioners advise corporate taxpayers to verify the completeness of accounting records, fiscal financial statements, and tax credits ahead of the new deadline. The PPh Article 29 penalty waiver signals that the authority recognises the liquidity burden created by accelerated year-end settlement.
Taxpayers who filed before KEP-71/PJ/2026 was issued are unaffected. However, if subsequent amendments produce a PPh Article 29 shortfall, payments made by 31 May 2026 also benefit from the penalty waiver.
Wider Context
KEP-71/PJ/2026 completes a sequence of Coretax-related relaxations. The government previously waived penalties for late monthly returns covering early Coretax periods for Value Added Tax (PPN) and withholding income taxes. The pattern signals a staged approach: prioritising substantive compliance while granting room for system adaptation.
The 31 May 2026 date is the hard stop. After that, DGT will resume normal penalty enforcement, including tax collection letters for the Article 7 UU KUP fine and interest penalties for late PPh Article 29 settlement under Article 9 paragraph (2a) UU KUP.
Closing
This relaxation is temporary and does not change substantive tax provisions. Corporate taxpayers still working on their fiscal year 2025 annual returns should use the extra time to ensure data completeness and accuracy, then file via Coretax before 31 May 2026.