2 articles
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.
VAT
Minister of Finance Decree Number 37/MK/EF.2/2026 establishes the Foreign Exchange Rates (Nilai Kurs) as the basis for settlement of Import Duty, Value Added Tax on Goods and Services and Luxury Goods Sales Tax, Export Duty, and Income Tax applicable for the period of 12 August 2026 to 18 August 2026. This decree is part of the routine weekly mechanism of the Ministry of Finance to convert transaction values denominated in foreign currencies into Rupiah for the purposes of calculating customs and tax obligations. This decree lists exchange rates for 25 foreign currencies, including the US Dollar (USD) at Rp17,960.00, Euro (EUR) at Rp20,716.89, British Pound Sterling (GBP) at Rp24,172.99, Japanese Yen (JPY per 100) at Rp11,382.99, as well as other currencies such as Australian Dollar, Canadian Dollar, Danish Krone, Hong Kong Dollar, Malaysian Ringgit, New Zealand Dollar, Norwegian Krone, Singapore Dollar, Swedish Krona, Swiss Franc, Myanmar Kyat, Indian Rupee, Kuwaiti Dinar, Pakistani Rupee, Philippine Peso, Saudi Arabian Riyal, Sri Lankan Rupee, Thai Baht, Brunei Dollar, Chinese Renminbi, and Korean Won. For foreign currencies not listed, the decree stipulates that the applicable exchange rate is the daily spot rate of the relevant foreign currency in the international market against the US Dollar as of the previous business day's closing, multiplied by the Rupiah-to-USD exchange rate as established in this decree. This decree took effect from 12 August 2026 to 18 August 2026, and represents a continuation of the routine weekly exchange rate policy regularly issued by the Ministry of Finance based on various tax and customs legal foundations in force.
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