Indonesian Tax Authority Addresses 'Ijon Pajak' Allegations

Clarification on Tax Collection Practices

The Indonesian Directorate General of Taxes (DJP) has responded to allegations of 'ijon pajak' - a controversial practice where taxpayers are asked to pay future tax obligations prematurely. Director General Bimo Wijayanto explained that the DJP's actions constitute 'dinamisasi', or dynamic adjustment of tax payments, rather than 'ijon pajak' ¹

Adjusting Tax Installments

Wijayanto clarified that the DJP has been adjusting monthly income tax installments (PPh Pasal 25) to align with taxpayers' current year earnings. This practice is particularly relevant for taxpayers with income patterns that differ from the previous year or those with irregular income ¹

Minister's Response

Finance Minister Purbaya Yudhi Sadewa denied allegations of 'ijon pajak', stating that he was unfamiliar with the term. While he acknowledged that some adjustments were made to meet the 2025 tax revenue target, he did not provide further details ³

Implications for Taxpayers

The DJP's dynamic adjustment approach aims to improve tax revenue collection and mitigate potential shortfalls. By aligning tax payments more closely with actual income, the tax authority seeks to create a more responsive and equitable tax collection system.