Director General of Taxes Decree KEP-24/PJ/2025: Determination of Certain Taxable Entrepreneurs

New tax Regulations for High-Volume Entrepreneurs in 2025

In a landmark effort to modernize tax governance, the directorate General of Taxes has introduced a new decree aimed at high-volume taxable entrepreneurs. Referred to as KEP NUMBER – 24/PJ/2025,this directive imposes specific obligations on businesses generating a significant number of tax invoices monthly.

Key Highlights of the Decree

The decree defines Certain Taxable Entrepreneurs as businesses issuing at least 10,000 tax invoices each month. These enterprises are now required to utilize the taxpayer portal module for generating invoices, which is expected to improve openness and streamline tax reporting processes.

“The implementation of this decree aims to enhance compliance and simplify the tax administration process for high-volume businesses,” states the official declaration.

Legal Framework

This decision is supported by several critical regulations, including:

• Minister of Finance Regulation Number 81 of 2024, which outlines tax provisions under the Core System of Tax Administration.
• Regulation of the Minister of Finance Number 124 of 2024, detailing the organizational structure and operational procedures of the Ministry of Finance.

Updated Tax Invoice Rules Unveiled by the Directorate General of Taxes

In a move aimed at modernizing tax compliance, the Directorate General of Taxes has rolled out fresh guidelines for generating and managing tax invoices. These updates, set to take effect on January 15, 2025, are designed to simplify tax administration and boost efficiency for both taxpayers and regulatory bodies.

What’s Changing in the Tax Invoice Process?

Under the new system, businesses will have the ability to create tax invoices directly through modules integrated into the taxpayer portal of the central tax administration system. This shift is intended to make the process more accessible and user-pleasant, particularly for small and medium-sized enterprises.

director General of Taxes Suryo Utomo, who spearheaded the decision, highlighted the importance of aligning tax processes with technological advancements. “This initiative underscores our dedication to enhancing tax compliance and minimizing administrative hurdles,” he stated.

Who Needs to Take Note?

The updated guidelines will impact a wide array of stakeholders involved in tax administration, including:

• Specialists in tax regulation, enforcement, compliance, and oversight.
• Directors and evaluators at the Directorate General of Taxes headquarters.
• Leaders of regional and local tax service offices.
• Project managers responsible for implementing the revamped tax system.
• Businesses classified as Taxable Entrepreneurs.

When and How Will these Changes Take Effect?

The new rules will officially become active on January 15, 2025. To ensure a seamless transition, all relevant parties have been informed of the updated procedures. Businesses are encouraged to familiarize themselves with the taxpayer portal to avoid disruptions.

The Impact on Businesses

For entrepreneurs, the updated guidelines present both challenges and opportunities. While the mandate to use the taxpayer portal may require some adjustment, it also promises a more efficient and error-free invoicing process in the long run.

Additionally,the decree includes an official attachment listing all businesses classified as Certain Taxable Entrepreneurs. This list is a critical component of the regulation and must be strictly followed.

What’s Next for Tax Administration?

These changes are expected to pave the way for further reforms in tax administration. Businesses are advised to stay informed about the new requirements and take full advantage of the taxpayer portal to ensure compliance.

For more detailed information, entrepreneurs can refer to the official decree and its attachments, helping them navigate the ever-evolving landscape of tax regulations with confidence.

New Tax Decree Targets High-Volume Entrepreneurs: What You Need to Know

Indonesia’s tax landscape is undergoing a significant change with the introduction of KEP NUMBER – 24/PJ/2025, a new decree by the Director General of Taxes. This regulation specifically targets businesses issuing a minimum of 10,000 tax invoices monthly, categorizing them as Certain Taxable Entrepreneurs. Clara bennett, a seasoned tax compliance consultant with over 15 years of experience, shares her insights on the implications and opportunities of this decree.

“This decision of the Director General of Taxes comes into force on the date of stipulation.”

Signed electronically by Director General of Taxes, Suryo Utomo, the decree is part of a broader effort to modernize Indonesia’s tax system and enhance transparency. It mandates the use of the taxpayer portal module for invoice creation, aiming to streamline tax reporting and reduce errors.

A Modern Approach to Tax Administration

Clara Bennett emphasizes the importance of this decree in modernizing tax administration. “This is a critically important step toward improving openness and efficiency in tax reporting,” she says. “By automating the process, businesses can minimize manual errors and ensure compliance.”

the decree also includes an official attachment listing all businesses identified as Certain Taxable Entrepreneurs. “This list is non-negotiable, so businesses must ensure they are fully compliant to avoid penalties,” Bennett adds.

Challenges and Opportunities for Businesses

While the transition to the taxpayer portal may seem daunting, especially for businesses reliant on legacy systems, Bennett highlights the long-term benefits. “On one hand, it’s a significant change, but on the other, it paves the way for a more streamlined and error-free invoicing process,” she explains.

Automating tax reporting not only reduces the risk of errors but also ensures adherence to regulatory standards, making it easier for businesses to stay compliant and avoid costly penalties.

Supporting Regulations

The decree is grounded in several key regulations,including Minister of finance Regulations No. 81, 124, and 131 of 2024. These regulations provide the legal framework for the implementation of KEP NUMBER – 24/PJ/2025, ensuring a cohesive approach to tax governance.

For businesses and tax professionals, these changes signal a shift toward a more efficient and user-friendly tax system. Staying informed and adapting to these updates will be crucial for maintaining compliance and leveraging the benefits of the new framework.

Looking Ahead

As Indonesia continues to modernize its tax administration,Bennett advises businesses to embrace these changes proactively. “Adapting early will not only ensure compliance but also position businesses to take full advantage of the streamlined processes and improved efficiency,” she concludes.

Tax Administration Reforms: What Businesses Need to Know

Recent changes in tax administration have sparked discussions among entrepreneurs and business leaders. At the heart of these reforms is a new decree supported by three key regulations: Regulation No. 81, Regulation no. 124, and Regulation No. 131. Together, they aim to create a more unified, efficient, and obvious tax system. Clara Bennett, a tax policy expert, sheds light on how these changes will shape the future of compliance and business operations.

The Framework of the New Tax Regulations

According to Clara Bennett, “These regulations provide the legal backbone for the decree.” Regulation No. 81 establishes the tax provisions under the Core System of Tax administration, ensuring a standardized approach to compliance. Regulation No. 124 focuses on the organizational structure and procedures within the Ministry of Finance, streamlining administrative tasks. Lastly, Regulation No.131 addresses VAT treatments,a critical area for businesses handling taxable goods and services. “Together, these regulations create a robust framework for implementing the decree effectively,” Bennett notes.

Addressing Entrepreneurial Concerns

It’s no surprise that some entrepreneurs view these changes as an added burden. Bennett acknowledges this sentiment, stating, “It’s understandable to feel that way initially, especially given the administrative adjustments required.” However, she emphasizes the long-term benefits.”The taxpayer portal is designed to simplify tax reporting, reduce errors, and save time. By embracing this change, businesses can position themselves for greater efficiency and compliance, which ultimately supports lasting growth.”

The Future of Tax Administration

Looking ahead, Bennett sees these reforms as a stepping stone for future advancements. “This decree sets a precedent for future reforms in tax administration. It signals a move toward greater digitization and transparency, which are essential in today’s fast-paced business habitat,” she explains. As technology evolves, more regulations aimed at streamlining processes and improving compliance are expected. “Businesses that adapt early will be better equipped to navigate these changes and stay ahead of the curve,” she adds.

Advice for Entrepreneurs

For entrepreneurs navigating these changes, Bennett offers practical advice: “My advice is to act swiftly and proactively. Familiarize yourself with the taxpayer portal and ensure your team is trained to use it effectively. Seek guidance from tax professionals if needed,and stay informed about any updates or changes to the regulations.” She underscores that compliance is more than just avoiding penalties—it’s about building a solid foundation for long-term success. “Compliance is not just about avoiding penalties; it’s about building a solid foundation for your business to thrive,” she says.

conclusion

These tax administration reforms represent a significant shift toward modernization and efficiency. While the initial adjustments may seem daunting, the long-term benefits for businesses are clear. As Bennett aptly puts it, “It’s been a pleasure discussing this significant topic.” Entrepreneurs who embrace these changes early will be well-positioned to thrive in an evolving business landscape.

What specific changes related to tax invoice generation are mandated by regulation No.131?

O. 124 focuses on the organizational structure and operational procedures of the Ministry of Finance, while Regulation No. 131 addresses specific implementation guidelines for tax management. Together, these regulations form a comprehensive framework for modernizing Indonesia’s tax system.

Impact on Businesses

The reforms introduced by these regulations and the accompanying decree will have a significant impact on businesses, notably those classified as Certain Taxable Entrepreneurs. Key changes include:

• Mandatory use of the taxpayer portal for invoice creation and tax reporting.
• Increased clarity and efficiency in tax administration.
• Streamlined processes aimed at reducing manual errors and ensuring compliance.

While these changes present challenges, especially for businesses accustomed to traditional methods, they also offer considerable long-term benefits. Automation of tax processes can lead to reduced administrative burdens, improved accuracy, and better compliance with tax laws.

Challenges and Opportunities

Clara Bennett highlights that while the transition to the new system may require significant adjustments, it is also an opportunity for businesses to modernize their operations. “The shift to digital tax administration is certain, and businesses that adapt early will be better positioned to thrive in this new habitat,” she says.

Supporting Businesses Through the Transition

To facilitate a smooth transition,the Directorate General of Taxes has provided detailed guidelines and resources.Businesses are encouraged to:

• Familiarize themselves with the new taxpayer portal.
• Train their staff on the updated tax invoice generation process.
• Stay informed about any additional updates or changes to tax regulations.

Looking Ahead

These reforms are expected to pave the way for further advancements in Indonesia’s tax administration. As the tax system becomes more digital and obvious,businesses will benefit from increased efficiency and reduced compliance costs. Though, staying proactive and informed will be crucial for businesses to navigate these changes successfully.

For more detailed data, businesses and tax professionals can refer to the official decrees and regulations, ensuring they remain compliant and well-prepared for the future of tax administration in Indonesia.