PMK 118 Tahun 2024 (MoFR 118/2024): Consolidation of Tax Administration Provisions

TaxPrime Newsletter: The Ministry of Finance Regulation (MoFR) Number 118 of 2024 or PMK 118 Tahun 2024

The Ministry of Finance Regulation (MoFR) Number 118 of 2024 or PMK 118 Tahun 202), effective as of January 1, 2025, serves as a significant step toward strengthening the legal provisions of Indonesia’s tax administration by consolidating and refining procedural provisions related to rectification, objection, reduction, cancellation, and revocation.

This regulation simultaneously reinforces the modernization agenda through the implementation of Pembaruan Sistem Inti Administrasi Perpajakan (PSIAP)—also referred to as Coretax—and with the primary aim of enhancing fairness, transparency, and legal certainty for Taxpayers.

With the enactment of MoFR Number 118 of 2024 or PMK 118 Tahun 2024, Taxpayers are strongly advised to take a strategic approach when submitting applications under this regulation. Particular attention is paid to selecting the most appropriate legal remedy, either pursuing a Mutual Agreement Procedure (MAP) or filing an objection because the regulation now imposes a limitation prohibiting concurrent actions. Furthermore, Taxpayers are required to submit a formal letter acknowledging data requests issued by the DGT, which makes preparation of documents strategy more critical.

Read our newsletter: [English] [Bahasa Indonesia]