Tax News Flash
New Regulation Update: PER-7/PJ/2025, PER-8/PJ/2025 and PER-11/PJ/2025
New Tax Administration Procedures Under Coretax Era

Issued: 21 and 22 May 2025
Effective Date: 21 and 22 May 2025

The Directorate General of Taxes (DGT) has enacted PER-7/PJ/2025 and PER-8/PJ/2025 on 21 May 2025, and PER-11/PJ/2025 on 22 May 2025 as the implementing regulations of Minister of Finance Regulation No. 81 of 2024, regarding the Tax Regulations of Coretax Implementation that consolidates and updates key provisions relating to tax withholding, electronic reporting (e-Bupot Unifikasi), e-Faktur obligations and various tax administrative procedures. This reform is a cornerstone of Indonesia’s transition to the Coretax system.

Key Highlights of PER-11/PJ/2025:

1. Expansion of withholding obligations

All Individual Taxpayers (WPOP) who run a business or practice independent professions and maintain bookkeeping are now obligated to withhold^[1]

• Article 23 Income Tax on certain service and rental payments, and
   
• Article 4(2) Final Tax on rental of land and/or buildings.

Previously, this withholding obligation applied only to certain professions (i.e., accountants, architects, doctors, notaries, Land Deed Officials (PPAT), except those who serve as Subdistrict Heads, attorneys, and consultants operating independently) regardless of whether they maintained bookkeeping. Additionally, these individuals required to be appointed by the DGT as individual tax withholders. Under the new regulation, the obligation is expanded to all types of professions who maintain bookkeeping, and such appointment by the DGT is no longer required.
 

2. e-Faktur upload deadline extended 

The deadline for uploading e-Faktur is extended to the 20th of the following month, from the previous 15th.^[2]
 

3. Amendment of incorrect e-Faktur

Taxpayers may amend the e-Faktur if it contains incorrect information. However, amendments do not include errors related to the identity of the taxpayers who purchase taxable goods and/or utilize the services such as name, address and tax identity number.^[3]

This provision likely confirms that the preparation of e-Faktur through the Coretax system will not contain incorrect information regarding the name, address, or tax identification number, as the relevant taxpayers are already properly registered in the Coretax system.
 

4. Issuance of e-Faktur in hardcopy form in the event of a force majeure situation^[4]

Taxpayers are now allowed to issue the e-Faktur in the form of hardcopy in the event of a force majeur situation.

A force majeur refers to an event beyond human control, which cannot be avoided, resulting in the inability to carry out activities or to perform them properly. This includes natural disasters, nonnatural disasters, and social disasters, as determined by the DGT.

The timeline for uploading the e-Faktur under such circumstances will be further regulated and will differ from the regular e-Faktur uploading deadline, which is on the 20th of the following month.
 

5. Temporary e-Faktur relaxation (January–March 2025)

E-Faktur issued during January–March 2025 are considered valid even if printed copies or PDF copies are incomplete, provided all required information is recorded in the DGT’s system.^[5]
 

6. New types of equivalent documents recognized

The regulation expands the list of documents treated as equivalent to a tax invoice (faktur pajak) to 27 types from the earlier 25 types, with two new additions for:^[6]

• Billing evidence for the provision of electronic facilities used to facilitate crypto asset transactions by electronic system trading organizers (PMSE)
   
• Billing documents for the sale of collateral or similar documents for the delivery of taxable goods in the form of collateral by creditors to buyers
   

7. Rounding rules standardized 

PER-11/PJ/2025 introduces uniform rounding rules for all tax reporting values, applicable in both rupiah and U.S. Dollar bookkeeping:^[7]

• For taxpayers using rupiah, amounts must be rounded to the nearest rupiah:
  • Less than Rp 50 → round down
  • Rp 50 or more → round up
     
• For taxpayers using USD bookkeeping, amounts must be rounded to the nearest cent (USD 0.01) using the same rule:
  • Less than USD 0.005 → round down
  • USD 0.005 or more → round up

This is a newly formalized provision under PER-11/PJ/2025 to ensure consistency across all reporting, especially under the Coretax system.
 

8. New Article 25 reduction provisions 

PER-11/PJ/2025 has clarified and expanded the requirements for taxpayers seeking a reduction in Article 25 income tax instalments.

In the event of a reduction in Article 25 income tax instalments due to changes in the taxpayer's business condition, new requirements include the mandatory submission of: (1) a projection of annual taxable income and recalculated instalments, (2) the last two years of Annual Income Tax Returns, and (3) the last three months of VAT Returns. These documents must be submitted using a prescribed format, either electronically or manually.^[8]

In addition, PER-11/PJ/2025 reaffirms that if the DGT does not respond within 30 calendar days, the application is deemed approved, a rule previously stated in KEP-537/PJ/2000 but now formally embedded with a clearer administrative procedure.^[9]
 

9. Clear exemption from annual filing for low-income individuals 

Individuals who only earn income below the nontaxable threshold (PTKP) and do not run a business or freelance no longer have to file an annual tax return.^[10]

While this was commonly applied in previous practice, PER-11/PJ/2025 now makes this exemption official, providing legal clarity and consistency that is especially important with the Coretax system in place.
 

Key Highlights of PER-8/PJ/2025:
 

1. The regulation specifies following 13 tax administration services provided the by tax office now should be administered through Coretax system:

   a. Issuance of Tax Clearance Certificates ( Surat Keterangan Fiskal - SKF )^[11]
    

   b. Changes to accounting methods or fiscal years^[12]
    

   c. Approval for bookkeeping in English and/or using USD^[13]
    

   d. Decisions on book value usage for asset transfers in mergers, consolidations or acquisitions^[14]
    

   e. Revaluation of fixed assets for tax purposes^[15]
    

   f. Exemptions from income tax withholding by third parties ( Surat Keterangan Bebas – SKB )^[16]
    

   g. Issuance of exemption certificates for Article 22 income tax on gold bullion imports for jewelry production aimed at export^[17]
    

   h. Exemption certificates for income tax on interest from deposits and Bank Indonesia certificates received by pension funds^[18]
    

   i. Exemptions from income tax on income from the transfer of rights to land/buildings or sale of luxury residences in designated tourism economic zones^[19]
    

   j. Verification of tax payment obligations related to land/building rights transfers^[20]
    

   k. Certificates for the utilization of taxable services from outside the customs area within the customs area^[21]
    

   l. Revocation of approvals for income tax imposition only on income received from Indonesia^[22]
    

   m. Services related to fulfilling tax obligations for prospective regional head candidates^[23]
    

2. Submission method
All applications must be submitted electronically via the DGT's Coretax system. Manual submissions are no longer accepted.^[24]
 

3. Legal basis and standardization
PER-8/PJ/2025 standardizes the procedures, documents and processing timelines across all regulated services, increasing legal certainty and administrative efficiency.
 

4. Transitional provisions 
If a taxpayer applied for or received one of the 13 tax administrative services through Coretax between 1 January 2025 and the date this new regulation was officially issued, those services and decisions remain valid and legally recognized.^[25]
 

Key Highlights of PER-7/PJ/2025:
 

1. Clarified Procedures for Married Women’s Tax ID Status

PER-7/PJ/2025 clarifies the procedures for married women who choose to file jointly with their husbands. They should now formally request their individual Tax Identification Number (Tax ID) be designated as non-active.

Reactivation should be done upon divorce, separation (e.g. legal separation based on a Judge’s verdict or an agreement to separate of income and assets) the passing of a spouse, or change in filing status. The regulation also confirms that married women act as the head of family may maintain a separate Tax ID if they independently meet the tax subject and object criteria^[26].

Previously, the specific administrative procedures for deactivation and reactivation were not clearly defined. In practice, these matters were handled variably by local tax offices, sometimes leading to inconsistent treatment.
 

2. NITKU to Replace Branch Tax ID

Based on Minister of Finance (“MoF”) Regulation No.136 Year 2023 and PER-6/PJ/2024, the implementation of NITKU starting from 1 July 2024.^[27]

PER-07/PJ/2025 further explained regarding a NITKU (Nomor Identitas Tempat Kegiatan Usaha), or Place of Business Identification Number, as the mandatory identifier for every business location that is separate from the place of residence or domicile. NITKU is now required for:

• Granting access to branch employees to generate or sign tax documents such as e-Faktur and e-Bupot.
   
• Identifying each employee’s place of work for the purpose of monthly Article 21 income tax reporting.
   
• Allocating business turnover per location for certain individual entrepreneurs and corporate taxpayers subject to final income tax under Government Regulations, in their annual income tax returns.
   
• Identifying seller and buyer addresses for the issuance of tax invoices (faktur pajak) involving the delivery of taxable goods and/or services.
   
• Reporting property tax objects (PBB) based on the geographic location of the taxable asset.
   
• Other tax administration purposes as required under applicable laws and regulations^[28].

Previously, businesses operating in multiple locations were required to apply for separate branch Tax IDs. These IDs were used for branch-level reporting and documentation but lacked full system integration, leading to inconsistency in data linkage between branches and headquarters.
 

3. Mandatory Profile Updates for All Taxpayers

Taxpayers are obligated to keep their profile data up to date, including residential and business addresses, marital status, dependent family members, and places of business. Updates may be submitted electronically or in person at the local tax office^[29].

While the requirement to update taxpayer data is not new, PER-7/PJ/2025 reaffirms this duty in alignment with the Coretax system and clarifies that taxpayer profiling now plays a central role in risk analysis, correspondence, and service eligibility.
 

4. Enhanced PKP (VAT-liable Entrepreneur) Registration

PER-7/PJ/2025 streamlines the confirmation process for VAT-liable entrepreneurs (PKP) by requiring applications to include a map and photo of the business location, with stricter rules for those using virtual offices (i.e., genuine business classification, lease contracts, and not using the address merely for correspondence). Electronic submission through Coretax is now prioritized. Applications are deemed approved if the tax office does not respond within 10 working days ^[30].

Previously, these procedures did not require visual documentation or clearly regulate virtual offices. Confirmation relied more on manual review, with less system-based validation and no automatic approval timeline.
 

What Should Taxpayers Do?
 

1. Check withholding obligations
   Taxpayers who run a business or practice a profession and maintain bookkeeping may now be required to withhold Article 23 income or 4(2) final tax, even if previously exempt.
    
2. Update e-Faktur schedule
   Taxpayers must upload e-Faktur by the 20th of the following month. Internal deadlines should be adjusted accordingly.
    
3. Use Coretax for administrative services
   All 13 specified tax services must now be processed through the Coretax system; manual submissions are no longer accepted.
    
4. Apply standardized rounding rules
   Taxpayers should implement correct rounding procedures for tax reporting in both Rupiah and USD, in line with the new regulation.
    
5. Register NITKU for each business location
   All taxpayers operating in multiple business locations must apply for NITKU through the DGT system. NITKU is now required for e-Faktur issuance, SPT filing, and employee tax reporting.
    
6. Review PKP registration requirements
   Taxpayers who make taxable supplies and are not yet registered as PKP should ensure they meet the new requirements, including submission of a map and photo of their business location. Special attention is needed for those using virtual offices.
    
7. Review VAT registration eligibility
   Businesses planning to apply for PKP status must ensure that each operating address has an assigned and validated NITKU before submission.
    
8. Discontinue use of branch tax IDs 
   Taxpayers should begin transitioning from legacy branch Tax IDs to the NITKU system. Branch NPWPs are no longer recognized under Coretax and will be phased out administratively.
    

A&M Insight

The introduction of PER-7/PJ/2025, PER-8/PJ/2025 and PER-11/PJ/2025 under the Coretax system represents a transformational shift in Indonesia’s tax administration from manual, fragmented processes to a more integrated, real-time, and system-based compliance framework.

These changes signal the government’s commitment to improving data accuracy, audit transparency, and administrative efficiency. At the same time, they impose new responsibilities and stricter procedural requirements that may affect both individual professionals and corporate taxpayers. In particular, the broader withholding scope, mandatory e-submissions, and system-enforced deadlines will require taxpayers to internal processes, retrain staff and adapt supporting systems.

While the transition may pose challenges in the short term, it also offers an opportunity to enhance tax governance, reduce compliance risks, and future-proof tax . We welcome the opportunity to assist your organization in evaluating the practical implications of these regulatory reforms and ensuring readiness for Coretax era compliance.

^[1]Directorate General of Taxes, PER-11/PJ/2025 on Procedures for Withholding, Deposit, and Reporting of Income Tax in the Coretax Administration System, arts. 16(1)–(2), issued May 22, 2025, Ministry of Finance Legal Documentation and Information Network, https://jdih.kemenkeu.go.id

^[2]Article 44 paragraph (1) of PER-11/PJ/2025

^[3]Article 48 paragraph (1) and (2) of PER-11/PJ/2025

^[4]Article 61 paragraph (1), (2), (8) and (10) of PER-11/PJ/2025

^[5]Article 135 of PER-11/PJ/2025

^[6]Article 62 of PER-11/PJ/2025

^[7]Article 129 paragraph (3) and (5) of PER-11/PJ/2025

^[8]Article 119 paragraph (1) letter b of PER-11/PJ/2025

^[9]Article 119 paragraph (8) of PER-11/PJ/2025

^[10]Article 112 of PER-11/PJ/2025

^[11]Directorate General of Taxes, PER-8/PJ/2025 on Procedures for Taxpayer Registration, Tax ID (NPWP), and Confirmation as Taxable Entrepreneur in the Coretax Administration System, arts. 3–9, issued May 21, 2025, Ministry of Finance Legal Documentation and Information Network, https://jdih.kemenkeu.go.id

^[12]Article 10 to 15 of PER-8/PJ/2025

^[13]Article 16 to 36 of PER-8/PJ/2025

^[14]Article 37 to 58 of PER-8/PJ/2025

^[15]Article 59 to 69 of PER-8/PJ/2025

^[16]Article 70 to 78 of PER-8/PJ/2025

^[17]Article 79 to 88 of PER-8/PJ/2025

^[18]Article 89 to 98 of PER-8/PJ/2025

^[19]Article 99 to 114 of PER-8/PJ/2025

^[20]Article 115 to 129 of PER-8/PJ/2025

^[21]Article 130 to 137 of PER-8/PJ/2025

^[22]Article 138 to 141 of PER-8/PJ/2025

^[23]Article 142 to 145 of PER-8/PJ/2025

^[24]Article 147 of PER-8/PJ/2025

^[25] Article 146 of PER-8/PJ/2025

^[26]Directorate General of Taxes, PER-7/PJ/2025 on Procedures for Taxpayer Registration, Tax ID (NPWP), and Confirmation as Taxable Entrepreneur in the Coretax Administration System, art. 4(2)–(4), issued May 21, 2025, Ministry of Finance Legal Documentation and Information Network, https://jdih.kemenkeu.go.id

^[27] Article 11(1.a) of MoF Regulation No.136 Year 2023 and Article 2(1.a) of PER-6/PJ/2024

^[28]Article 33 of PER-7/PJ/2025

^[29]Article 11 - 16 of PER-7/PJ/2025

^[30]Article 48 - 55 of PER-7/PJ/2025