PER-11/PJ/2025 and Income Tax Article 25 (PPh 25) Installment Reporting in Coretax

PER-11/PJ/2025 and the New Article 25 Income Tax (PPh 25) Installment Report

In short: PER-11/PJ/2025 requires taxpayers to submit an Income Tax Article 25 (PPh 25) Installment Calculation Report through the Coretax Taxpayer Portal, even when the installment is NIHIL or the taxpayer is at a loss. The obligation began with PMK 81/2024; PER-11/PJ/2025 sets the report’s format and reporting periods.

Key changes under PER-11/PJ/2025 for PPh 25

• Banks report monthly, other financial taxpayers and listed companies quarterly, and BUMN/BUMD once per fiscal year, each within 20 days after the period ends.
• The estimated income tax threshold that triggers a PPh 25 recalculation when business grows drops from 150% (KEP-537/PJ./2000) to 125%.
• An application to reduce PPh 25 is deemed accepted if the DGT issues no decision within 30 days after the receipt is issued.
• Underpaid installments must be paid and are subject to administrative sanctions; overpayments can be refunded or credited in the Annual Tax Return.
• Effective date: 22 May 2025.
• Fully electronic: reports follow electronic documentation standards in Coretax, and reporting cycles can differ between taxpayers.

1. Background: What PER-11/PJ/2025 Regulates

One of the backgrounds for the issuance of PER-11/PJ/2025 regarding Provisions for Reporting Income Tax, Value Added Tax, Sales Tax on Luxury Goods, and Stamp Duty in the Framework of Core Tax Administration System Implementation is the alignment of tax regulations with the principles of digitalization, transparency, and risk-based classification. Thus, the main focus of this regulation is to regulate technical provisions regarding a more integrated and digital-based tax reporting process that provides legal certainty, administrative convenience and improves services for Taxpayer.

With the digitalization of tax reporting, one aspect that is directly affected is related to the mechanism of reporting and calculating Income Tax Article 25 installment where there are crucial changes with the emergence of the obligation to report Income Tax Article 25 installment that previously did not need to be reported. This reporting obligation has started since the issuance of PMK 81/2024, but related to the format and reporting period of the Income Tax Article 25 Installment Calculation Report is regulated in PER 11/PJ/2025.

2. PPh 25 Installment Calculation Report: Who Reports, How Often and By When

Notes:

1. Within audit conditions, Bank Taxpayer may use prior period data for reporting in the last tax period of the financial year.
2. In the case of not having the obligation to submit the fourth quarter financial report, Other Taxpayer or Taxpayer Listed on Stock Exchange Other than Banks may use the data of the previous quarter period for the reporting of the last quarter of the current year.

3. When the DGT Can Set Your PPh 25 Installment (Article 113)

In Article 113 PER 11/PJ/2025, there is the authority of the Director General of Taxes (DGT) to determine the calculation of the amount of Income Tax Article 25 installment if the Taxpayer do not perform Income Tax Article 25 installment calculation and/or under the following condition:

• Taxpayer entitled to compensation for losses;
• Taxpayer earn irregular income;
• Taxpayer submitting Annual Income Tax Return (SPT Tahunan) beyond the deadline;
• Taxpayer granted an extension of the period for submitting Annual Income Tax Return;
• Taxpayer making self-correction of Annual Income Tax Return which resulting monthly installments greater than installments before the correction;
• Taxpayer facing changes in business circumstances.

A. Documents Accepted as the Basis for Fiscal Loss Compensation

PER 11/PJ/2025 includes additional documents that serve as the basis for fiscal loss compensation, previously regulated in KEP-537/PJ./2000, so that the entire document is as follows:

• Annual Tax Return (SPT),
• Tax Assessment Letters,
• Objection Decision Letter,
• Decision Letter on Reduction of Tax Assessment Letter (new addition),
• Decision Letter on Cancellation of Tax Assessment Letter (new addition),
• Correction Decision Letter (new addition),
• Mutual Agreement Procedures Decision Letter (new addition),
• Appeal Verdict, or
• Judicial Review Verdict (new addition)

B. Basis for Temporary PPh 25 Calculation After an SPT Extension

For Taxpayer who are granted an extension of the period for submitting the Annual Income Tax Return, the basis for the temporary calculation of Income Tax Article 25 installment in accordance with PER 11/PJ/2025 is contained in Document of Extension Notification for The Annual Income Tax Return Submission Period, while in the previous provision (KEP-537/PJ./2000) it is contained in the Temporary Notification Letter Document Submitted by the Taxpayer.

C. Reducing or Recalculating PPh 25 When Business Declines or Grows

Taxpayer may apply for a reduction in Income Tax Article 25 installment if there is a condition of Taxpayer business/activities decline with the following provisions:

For Taxpayer who face the condition of increase business/activity of Taxpayer there are changes to the provisions related to the estimated threshold of Income Tax Payable for the fiscal year as follows:

The implication of the increase in business is that the recalculation of Income Tax Article 25 installment must be carried out by the Taxpayer or DGT for the remaining months of the relevant fiscal year. Read the pdf version: [English] [Bahasa Indonesia]

4. Underpayment vs Overpayment: When PPh 25 Payments Differ from the Report

5. PER-11/PJ/2025 Compliance Checklist

With the issuance of PER-11/PJ/2025:

1. Taxpayer have a new obligation in the form of submitting the Income Tax Article 25 Installment Calculation Report through the Taxpayer Portal.
2. Taxpayer must submit the Income Tax Article 25 Installment Calculation Report even if the Income Tax Article 25 installment is zero (“NIHIL”) or the Taxpayer is at a loss.
3. Taxpayer should update the calculation of Income Tax Article 25 installment adjusted to certain conditions based on Article 113 PER 11/PJ/2025.
4. Taxpayer should adjust the amount of Income Tax Article 25 installment paid with those contained in the Income Tax Article 25 Installment Calculation Report to avoid differences in value that can cause administrative sanctions.

6. FAQ: PER-11/PJ/2025 and PPh 25