Indonesian Insurance Agents Challenge New Tax Regulations

Legal Uncertainty and Financial Impact

The Indonesian Insurance Agents Association (PAAI) has formally requested the government to review recent tax regulations that are adversely affecting insurance agents. The regulations in question include PMK-168/PMK.03/2023 regarding the implementation of the Core Tax Administration System and PMK 81/2024, which has been interpreted to require insurance agents to register as Taxable Entrepreneurs (PKP) ¹

Key Issues Raised by PAAI

1. Legal Uncertainty: PAAI argues that the current regulations create legal ambiguity regarding the status of insurance agents as taxpayers. Chairman Muhammad Idaham emphasized the need for clarity to prevent differing interpretations ¹
   Source 1

   https://finansial.bisnis.com/read/20260112/215/1943513/paai-sorot-problem-pajak-agen-asuransi
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2. Financial Burden: Many agents are facing significant tax arrears due to the new regulations. Agents earning above Rp 4.8 billion annually have lost access to the Normative Calculation of Net Income (NPPN) and are now required to maintain full business accounting records ²
   Source 2

   https://keuangan.kontan.co.id/news/aturan-pajak-baru-berlaku-agen-asuransi-kirimkan-surat-ke-purbaya
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3. Inconsistent Treatment: The association highlighted the discrepancy between the regulatory framework and practical implementation. Despite being restricted to working with a single company, insurance agents are treated as independent business entities ¹
   Source 1

   https://finansial.bisnis.com/read/20260112/215/1943513/paai-sorot-problem-pajak-agen-asuransi
   .

PAAI's Proposals and Next Steps

PAAI has submitted a formal letter to the Minister of Finance and the Director General of Taxes, requesting:

• A comprehensive review of the current tax policies
• Clear definition of insurance agents' tax status
• Reinstatement of NPPN access for eligible agents
• Adjustment of the Core Tax Administration System
• Official discussions with government representatives

The association remains committed to supporting national revenue while advocating for fair and proportional tax policies for insurance agents.