Entity Setup
Entity Setup in Indonesia: PMK-44/2026 Lets More People Act as Tax Agents
Indonesia’s PMK-44/2026 expands who can be appointed as Kuasa Wajib Pajak beyond tax consultants—here’s what you need to know when setting up entities or appointing representatives.
By NomadicTax Research Team • 5-8 min read • August 12, 2026
## What’s New Under PMK-44/2026
Released on **9 July 2026**, Indonesia’s **Peraturan Menteri Keuangan** No. 44 Tahun 2026 (PMK-44/2026) expands who can serve as **Kuasa Wajib Pajak** (Tax Power-of-Attorney). Previously reserved largely for professional tax consultants, now you can appoint:
- A **tax consultant** with valid license,
- **Family members** (up to second degree, by blood or marriage), or
- **Other individuals** meeting technical competence criteria and registered in the tax administration system. ([pajak.go.id](https://www.pajak.go.id/index.php/id/siaran-pers/pmk-nomor-44-tahun-2026-permudah-penunjukan-kuasa-wajib-pajak-dengan-tetap-menjunjung?utm_source=openai))
Also, there are stricter rules to maintain **competence and integrity**, such as:
- For consultants and other non-family representatives: must have a valid tax consultant license or **Surat Keterangan Terdaftar (SKT)**. ([pajak.go.id](https://www.pajak.go.id/index.php/id/siaran-pers/pmk-nomor-44-tahun-2026-permudah-penunjukan-kuasa-wajib-pajak-dengan-tetap-menjunjung?utm_source=openai))
- Former Ministry of Finance employees must observe a **cooling-off period** of **5 years** after leaving service before becoming a tax power-of-attorney. ([pajak.go.id](https://www.pajak.go.id/index.php/id/siaran-pers/pmk-nomor-44-tahun-2026-permudah-penunjukan-kuasa-wajib-pajak-dengan-tetap-menjunjung?utm_source=openai))
## Why This Matters for Entity Setup
- When forming a new entity, choosing who handles tax matters is crucial. If you’re in Indonesia or planning operations there, you can now entrust family or other qualified individuals—not just licensed consultants—making representation more flexible and cost-efficient.
- Ensuring the representative has an SKT (for non-consultants) is now mandatory; otherwise documents or filings submitted may be challenged.
- For compliance risk and administrative clarity, always check that the appointed representative meets the technical prerequisites.
## Practical Checklist for Businesses
1. **Identify potential representatives** early when incorporating (e.g., entity setup). Can be family or others.
2. **Verify credentials**: license (for consultants) or valid SKT (for others). Check DJP registration.
3. **Use proper power of attorney document**: Sur atas Kuasa Khusus, either paper or electronic.
4. **Ensure cooling-off period is respected**, especially with former government personnel. Failure to observe this will invalidate appointment in eyes of DJP.
## Example Scenario
> **PT Baru** is a small retail firm in Surabaya. The founder wants his spouse (his wife) to act as Kuasa Wajib Pajak rather than hiring a consultant.
> Under PMK-44/2026, that’s allowed if the spouse qualifies as family up to second degree and fills out Surat Kuasa Khusus. No license or SKT required just for family under this scope. They act on behalf in filings, audits, etc.
> If he instead appointed a cousin, that person would need an SKT and must be registered and meet competency requirements.
## Things to Watch Out For
- Appointed representative (family or otherwise) must have their **own identification** in tax administration, especially non-consultants needing SKT.
- Documents given by representative should clearly show they are acting under the power of attorney (name, scope, entity, etc.).
- For entities undergoing audits or controversy, appointing someone with weaker credentials could lead to increased scrutiny by tax authorities.
By expanding who you can appoint, PMK-44/2026 offers greater flexibility in entity setup and representation—but businesses must ensure the correct prerequisites are met to avoid compliance risks.