TaxPrime Newsletter: MoFR 17 of 2025 or PMK 17 Tahun 2025

Indonesia’s Ministry of Finance has issued MoFR 17 of 2025 or PMK 17 Tahun 2025 to overhaul procedures for investigating tax crimes, thereby replacing PMK 55 Tahun 2016. Furthermore, this new tax regulation introduces a structured 10-stage tax investigation process—starting from incident reports and ending with potential termination—while categorizing violations into three tiers: negligence in fulfilling tax obligations, tax crimes committed intentionally , and misuse of tax documents. Each tier carries distinct tax penalties ranging from fines to imprisonment, depending on the severity and intent behind the violation.

Moreover, MoFR 17 of 2025 or PMK 17 Tahun 2025 strengthens legal certainty in tax enforcement, introduces defined roles and deadlines for investigators, and opens a path for termination of tax investigations through full settlement and sanctions, aligning with the ultimum remedium principle. Businesses are urged to enhance tax compliance through preventive controls, tax documentation systems, and regular tax health checks to mitigate the rising risks of tax crime under this new framework.

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