Jakarta. Indonesia’s Finance Ministry has clarified that a Rp 50 million ($2.9 K) tax underpayment reported by Finance Minister Purbaya Yudhi Sadewa in his 2025 annual tax return reflects a common outcome in the country’s progressive tax system, rather than any reporting irregularity.

Finance Ministry spokesperson Deni Surjantoro said the shortfall arose from a mismatch between taxes withheld and total tax owed, particularly as Purbaya earned income from multiple sources during the fiscal year.

“Such underpayment is normal, especially for taxpayers with more than one source of income. All earnings are consolidated in the final tax calculation, while withholding by each employer is carried out separately,” Deni said.

The ministry emphasized that Purbaya had submitted his 2025 annual income tax return on time and in full compliance with prevailing regulations.

Purbaya had earlier disclosed the underpayment during a media briefing in Jakarta, attributing it to dual income streams, his previous role at the Deposit Insurance Corporation (LPS) and his current position at the Finance Ministry. He said that he had not encountered such discrepancies in prior filings when his income came solely from LPS.

To improve reporting accuracy, the Directorate General of Taxes has rolled out its Coretax system, which integrates tax data automatically, including withholding records. The system is designed to help taxpayers complete filings correctly, comprehensively, and transparently.

“The Finance Ministry urges all taxpayers to fulfill their tax obligations in an orderly and timely manner,” Deni added.

Separately, Purbaya has extended the deadline for individual taxpayers to submit their annual returns to April 30, 2026, from the previous March 31, with the policy to be formalized in an official circular.

As of Tuesday, the tax office had received 9,072,935 annual income tax returns. Authorities warned that late submissions will incur administrative penalties of Rp 100,000 for individuals and Rp 1 million for corporate taxpayers.

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