Client Alert

The DGT has announced that starting the 2025 tax year, VAT refunds of up to IDR 5 billion can be processed without audit—but only for taxpayers classified as “Compliant.” Compliant taxpayers must meet the following criteria:

The government has extended the 0.5% final income tax rate for MSMEs under the latest Regulation in Lieu of Law No. 2 of 2024. This policy applies to: However, MSMEs are still encouraged to prepare simple

The Directorate General of Taxes (DGT) officially requires all VAT-registered businesses to upgrade to e-Faktur version 3.3 starting July 1, 2024. This version includes automatic validation of customer NPWP and utilizes pre-populated data from DGT systems.