Indonesia's Tax Authority Implements Year-End Leave Ban for Employees

Ensuring Tax Service Continuity

The Directorate General of Taxes (DJP) under the Ministry of Finance has issued a formal directive prohibiting annual leave for all employees during December 2025. This decision is outlined in Nota Dinas Nomor ND-338/PJ/PJ.01/2025, which was circulated to all unit heads including the Secretary of DJP, directors, regional office heads, and technical implementation units.

Rationale Behind the Policy

The primary motivation behind this policy is to ensure service stability and security of tax revenue as the year comes to a close. By maintaining full staffing, DJP aims to effectively manage the year-end tax obligations and compliance. The measure reflects the critical nature of December in the tax calendar, typically involving numerous taxpayers filing their final returns and making necessary payments.

Exceptions to the Leave Ban

While the directive imposes a general ban on annual leave, it does provide for two specific exceptions: 1) Religious holidays and 2) Unavoidable emergencies. These exceptions are subject to existing regulations and require proper approval from unit heads. The careful framing of these exceptions aims to balance operational needs with employee welfare.

Implications for Tax Administration

This proactive measure by DJP demonstrates the authority's commitment to maintaining efficient tax administration during a critical period. The policy is likely to have a positive impact on tax revenue collection and compliance as the year concludes.