Home Blog The Tax Directorate General in Indonesia: Roles and Responsibilities Finance | Indonesia | Tax Reporting The Tax Directorate General in Indonesia: Roles and Responsibilities InCorp Editorial Team 23 June 2025 5 minutes reading time Table of Contents What is the Tax Directorate General in Indonesia? Brief History of the Tax Directorate General Responsibilities of the Tax Directorate General in Indonesia Importance of the Tax Directorate General for Taxpayers Let InCorp Manage Your Tax Reporting The tax directorate general in Indonesia is crucial to strengthening the country’s fiscal policy and economic stability. As the primary agency responsible for tax collection and administration, the governmental body ensures compliance with tax laws and regulations and generates essential revenue for the government. This comprehensive guide explores how the tax directorate general in Indonesia functions, is responsible and impacts Indonesia’s economy. What is the Tax Directorate General in Indonesia? The Tax Directorate General or Directorate General of Taxes (DGT) is one of the directorates under the Ministry of Finance. It operates by the mandate of the Minister of Finance Regulation No. 184/PMK/01/2010 on the Organization and Work Procedures of the Ministry of Finance. With the presence of the DGT, the Indonesian public is expected to understand the importance of paying taxes correctly and on time to support Indonesia’s development. What Does the DGT Stand For? The Directorate General of Taxes (DGT), operating under Indonesia’s Ministry of Finance, formulates taxation policies. The tax directorate general is a critical driver of the national economy. Therefore, every regulation is expected to capitalize on opportunities arising in the rapidly evolving digital era. READ MORE:Indonesia Implements New Regulations For Withholding TaxWhat You Need To Know About Taxation Of Benefits In KindGuide On Filing Corporate Annual Tax Return (SPT) In Indonesia Brief History of the Tax Directorate General The DGT began as a merger of several taxation units in Indonesia, including the Tax Office, the Bureau of Auction, the Tax Accountant Office, and the Agricultural Tax Office, which was initially under the Directorate of Regional Development Contribution (IPEDA). IPEDA, initially part of the Directorate General of Monetary, was transferred to the Directorate General of Tax following Presidential Decree No. 12/1976 in March 1976. The tax directorate general is structured into head office units and operational office units. The DGT’s head office includes the Secretariat of the Directorate General, directorates, and reviewer positions. The operational offices comprise the Regional Office of the DGT (Kanwil DJP), the Tax Service Office (KPP), the Tax Service, the Counseling and Consulting Office (KP2KP), and the Tax Data and Document Processing Centre (PPDDP). Responsibilities of the Tax Directorate General in Indonesia In addition to implementing local tax policies, the DGT is tasked with standardizing technical aspects within the tax field. As a crucial part of the Ministry of Finance, the tax directorate general in Indonesia is a key economic driver for the country. According to the Minister of Finance Regulation Number 234/PMK.01/2015 mandate, which pertains to the Ministry of Finance’s organization and work procedures, the DGT is responsible for developing and executing taxation policies and technical standards. To fulfill these duties, the DGT performs several functions: Developing tax policies Implementing tax policies Preparing norms, standards, procedures, and criteria for taxation Offering technical guidance and assessments in taxation Managing the operational activities of the DGT Importance of the Tax Directorate General for Taxpayers The Directorate General of Taxes (DGT) plays a pivotal role in overseeing and managing various important functions within Indonesia’s taxation landscape. Collection of State Revenue One of the DGT’s primary roles is collecting state revenue from the taxation sector. The DGT manages taxes such as income tax, value-added tax (VAT), property tax (PBB), and others. This tax revenue is a primary source of state income for financing various government programs and activities. Tax Compliance Supervision and Enforcement The DGT is responsible for overseeing and enforcing taxpayer compliance with tax obligations, which includes monitoring timely tax reporting and payments and preventing tax avoidance or evasion. The tax directorate general in Indonesia strives to create a fair and equitable taxation climate for all taxpayers through strict law enforcement. Formulation of Tax Policies The DGT formulates tax policies, including amendments to tax laws and technical policies related to tax administration. This aims to continuously improve the tax system’s efficiency and provide appropriate incentives for the national economy. Taxpayer Services and Education The DGT aims to deliver excellent services to taxpayers, which includes simplifying tax administration procedures and informing them about their obligations and rights. Additionally, the DGT enhances public awareness and comprehension of the importance of taxation through educational and social outreach initiatives. Development of the Tax System The DGT conducts research and analysis to develop a more efficient, transparent, and fair tax system. This includes implementing information technology and e-government to enhance tax management and oversight. International Cooperation The DGT actively engages in international cooperation regarding tax information exchange and tax avoidance prevention. This cooperation is essential to ensure that cross-border transactions are well-monitored and that due taxes are duly collected. Overall, the role of the Directorate General of Taxes is vital in maintaining the country’s fiscal stability, funding various development programs, and creating a conducive taxation environment for economic growth and societal welfare. Let InCorp Manage Your Tax Reporting Preparing a tax report can be challenging and time-consuming, fraught with the risk of errors that could trigger costly penalties and investigations. InCorp Indonesia (an Ascentium Company) simplifies corporate tax compliance. Our experienced tax consultants offer a comprehensive solution, combining in-depth knowledge of Indonesian tax regulations with a commitment to accuracy and efficiency. Here’s what sets InCorp apart: Experienced Tax Consultants: Our team has the knowledge and expertise to navigate complex tax regulations. Error-Free Filings: We ensure your tax reports are accurate and compliant, minimizing the risk of penalties. Streamlined Process: We handle the entire tax reporting process, saving you time and resources. Reduced Audit Risk: Our comprehensive approach minimizes the possibility of audit triggering. Fill in the form below for accurate, efficient, and compliant tax reporting. Read Full Bio Verified by Dessy Amelia Senior Tax Manager at InCorp Indonesia Dessy has over eight years of experience in tax services, leading InCorp Indonesia's tax team in compliance and strategic solutions. She holds a bachelor's degree in Fiscal (Tax) Administration from Universitas Indonesia and is pursuing a master's degree in Tax Policy and Administration at the same university. She is also a certified tax consultant (USKP C), and a member of the Indonesian Tax Consultants Association (IKPI). Frequently Asked Questions Will having a tax ID but never submitting tax reports cause a problem for my company? Yes, you will receive an administrative penalty for delaying or not correctly and promptly filing the tax report. It is best to hire a local third party to handle your taxation matters in Indonesia, such as InCorp. Is there any foreign exchange control or limitation in Indonesia? Foreign currency transfers to and from Indonesia are not subject to exchange controls, allowing investors to freely move funds. However, these transactions must be reported to Bank Indonesia. Moreover, there are reporting obligations concerning offshore assets and liabilities to ensure transparency in financial activities. What are the deadlines for the annual tax return? The deadline for an individual tax return is 31 March. A corporate tax return must be lodged within four months after the end of the calendar year or taxable year. More information can be found here: 21 Must-Know Facts about Annual Tax Return in Indonesia. Should I submit tax reports if my company has been established but has no business activities? Yes, submitting monthly and annual tax reports is mandatory even if your company does not have any business activities, thus owing zero taxes. Get in touch with us. Lead Form Notify Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit What you’ll get A prompt response to your inquiry Knowledge for doing business from local experts Ongoing support for your business Disclaimer The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website. More on Finance Opportunities to Establish EdTech Startup Companies To Consider Read more How BRICS Membership Can Supercharge Investments in Indonesia Read more What are the Major Benefits of Tax Outsourcing in Indonesia? Read more