Core Tax System Transition Continues: Govt. Grants One-Month Sanctions Waiver for Late Filing of Corporate Annual Income-Tax Returns

The Director-General of Taxes (“Director-General”) has issued Decree No. KEP-71/PJ/2026 on Tax Policies and the Implementation of the Core Tax Administration System for the Submission of Annual Income-Tax (Pajak Penghasilan – “PPh”) Returns (Surat Pemberitahuan – “SPT”) by Corporate Taxpayers for the 2025 Tax Year (“Decree 71/2026”).

In essence, Decree 71/2026 grants corporate taxpayers a one-month administrative sanctions waiver for any late filing and payment of their 2025 annual SPT in order to ease the ongoing transition to the newly-implemented Core Tax Administration System (“CTAS”) for corporate taxpayers.[1] Decree 71/2026 also confirms that any delays in the filing of the aforementioned 2025 annual SPT will not disqualify corporate taxpayers from being stipulated as “specific criteria taxpayers” and mandates the automatic annulment of any tax collection letters (Surat Tagihan Pajak – “STP”) that are specifically issued for such late submissions.[2]