Overview of PMK No. 44/2026
Issued on 9 July 2026 (effective immediately unless otherwise specified), PMK No. 44/2026 by Indonesia’s Directorate General of Taxes (DJP) simplifies the designation of Kuasa Wajib Pajak (Tax Proxy). Under this regulation, taxpayers may appoint family members or other qualified third parties—not just licensed tax consultants—as proxies, provided they meet competency and integrity requirements. (pajak.go.id)
This helps entities reduce bottlenecks in tax administration and delegate responsibilities flexibly while maintaining tax compliance. Ideal for foreign-owned entities, start-ups, or companies in provinces with limited access to professional tax consultants.
Key Provisions & Practical Use Cases
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Authorized Persons:
- Licensed Tax Consultants (with valid permits).
- Family members (spouse, immediate relatives up to second degree).
- Other persons (“pihak lain”) fulfilling competency requirements defined by DJP—must hold SKT (Surat Keterangan Terdaftar) and be registered in the tax administration system. (pajak.go.id)
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Form of Proxy:
- Can be via electronic or hard-copy special power of attorney. Signed and submitted per formats prescribed by DJP.
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Scope of Proxy Power:
- Filing returns, handling audit notices, requesting tax rulings—dependent on what the power covers.
- Proxy must provide clear documentation, act within authorized limits.
Examples of Application
Scenario A: A company in Jakarta wants its insured manager (not a tax consultant) to handle monthly VAT returns.
- Proxy appointment via special power of attorney, manager obtains SKT, registers in system, acts on behalf.
Scenario B: Foreign‐owned SME in remote Bali hires local family member as tax proxy.
- Must ensure appointed family member has SKT and meets competency standard. All filings still tied to principal taxpayer.
Benefits for Entity Setup
- Cost savings: Reduced reliance on professional consultants for every task.
- Speed and control: Decision-making and responses to audits smoother when proxy is internal or local.
- Access in remote areas: Families or local competent staff broaden capacity where professionals are scarce.
Risks & Mitigations
- Competency & integrity concerns: Proxy not meeting standards risk penalties or rejection of submissions.
- Authority clarity: Ensure special power of attorney states all prescribed actions clearly to avoid overstep or malpractice.
- Legal liability: Principal remains responsible; choose trusted persons, maintain oversight.
Actionable Checklist for Entities
- Apply for SKT and register proxy in DJP system.
- Draft proper Surat Kuasa Khusus, define authority, validity period.
- Keep records of all proxy acts—copies of filings, communications.
- If audit, ensure proxy’s actions are documented to show compliance with PMK 44.
Conclusion
PMK No. 44/2026 opens new flexibility for entity setup in Indonesia. By understanding who qualifies as proxy and ensuring formalities are satisfied, companies can streamline tax compliance, reduce costs, and leverage local resources effectively.