Overview

Given that taxation remains one of the most important sources of revenue for Indonesia, tax reform has been a primary area of focus for the government in recent years.[1]  A number of major tax-related policies, such as the tax amnesty, have been implemented in the hope of securing more funds for the state. One of the most important taxation-related processes is the reporting of tax returns, which is aimed at scrutinizing whether taxpayers have fulfilled all of their tax-related obligations or not.

In recent years, the government has started to utilize online methods for the reporting of tax returns, with the ultimate aim of easing the overall reporting process.[2] The government has now further updated its policy on the submission of electronic tax returns (“e-SPT”) through the issuance of Regulation of the Director-General of Tax (“Director-General”) No. PER-02/PJ/2019 on Procedures for the Submission, Admission and Processing of Tax Returns (“Regulation 2/2019”), which simultaneously repeals and replaces the following five tax-related regulatory frameworks (together referred to as “Previous Regulations”):