General provisions and procedures of taxation. · 1 article
General Tax Provisions
Minister of Finance Decree Number 40/MK/EF.2/2026 establishes monthly interest rates used as the basis for calculating administrative sanctions in the form of interest as well as providing interest compensation for the period from 1 September 2026 to 30 September 2026. This determination implements the mandate from the Minister of Finance to the Director of Economic Stabilization Strategy based on Minister of Finance Decree Number 488/KMK.010/2021 as amended by KMK Number 51 of 2026. Interest rates are tiered according to the type of article in the General Provisions and Tax Procedures Law (UU KUP) that serves as the basis for the sanction. For administrative sanctions, rates range from 0.60% (Article 19 paragraphs (1), (2), and (3)) up to 2.27% per month (Article 13 paragraph (3b)), with intermediate rates of 1.02% for Article 8 paragraphs (2), (2a), Article 9 paragraphs (2a), (2b), and Article 14 paragraph (3); 1.43% for Article 8 paragraph (5); and 1.85% for Article 13 paragraphs (2) and (2a). For interest compensation provided to taxpayers, the rate is set at 0.60% per month, applicable to Article 11 paragraph (3), Article 17B paragraphs (3) and (4), and Article 27B paragraph (4) of the KUP Law. This decree takes effect from 1 September 2026 and serves as the reference for the Directorate General of Taxes in calculating the amount of interest sanctions or interest compensation to be paid or received by taxpayers during that period.
