The implementation of tax collection in Indonesia adopts a self-assessment system, under which Taxpayers calculate, pay, and report their tax liabilities independently in accordance with the applicable laws and regulations. To ensure that these obligations have been fulfilled in accordance with the applicable provisions, the Government carries out a compliance monitoring function over Taxpayers’ fulfillment of their tax obligations. The implementation of Taxpayer compliance monitoring is regulated under Minister of Finance Regulation No. 111 Year 2025 (MoF Regulation No. 111/2025) concerning Taxpayer Compliance Monitoring, and further regulated through Circular Letter of the Director General of Taxes No. SE-8/PJ/2026 (SE- 8) concerning Guidelines for Taxpayer Compliance Monitoring.

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