Tax Sanction Relief Window Opens: Up to 100% Waiver for Late Tax Returns Filed by 31 December 2026

The Director General of Taxes (“Director General”) has issued Decree No. KEP-239/PJ/2026 on Tax Policy in Relation to the Reduction or Waiver of Administrative Sanctions (“Decree 239/2026”). Decree 239/2026 is intended to improve taxpayer compliance, stimulate the national economy, and implement Regulation of the Minister of Finance (“Minister”) No. 118 of 2024 on Procedures for Correction, Objection, Reduction, Waiver, and Cancellation in the Taxation Sector (“Regulation 118/2024”), as amended by Regulation of the Minister No. 71 of 2026.[1]