Beware! Tax Arrears Can Now Lead to Restrictions or Blocking of Certain Access!

The Directorate General of Taxes (DGT) is increasingly tightening the space for taxpayers who are uncooperative in settling their tax debts. Through the latest regulation, PER-27/PJ/2025, the government now has the authority to request restrictions or even blocking of various public services for those who have outstanding tax liabilities.

Which services can be affected and what is the procedure? See the full summary below.

Recommendation for Restriction or Blocking

 

In simple terms, if an individual or business entity has tax debt that is due and collection actions have been carried out (such as a Distress Warrant) but remains unpaid, the Directorate General of Taxes (“DGT”) may provide a recommendation to relevant agencies to impose Restrictions and/or Blocking of public service access belonging to the taxpayer.

This step is taken as a last resort in the series of tax collection actions to ensure taxpayer compliance.

What Are Restrictions, Blocking, and Tax Debt?

Restriction is an action to limit access to Public Services. Meanwhile, Blocking is an action to completely deny access to Public Services.

Furthermore, Tax Debt refers to taxes that must still be paid, including administrative sanctions in the form of interest, fines, or increases as stated in a tax assessment letter or similar document based on applicable tax laws and regulations.

Which Public Services Can Be Restricted or Blocked?

Based on regulation PER-27/PJ/2025, public services that may be subject to restriction or blocking include:

1. Blocking access to the Legal Entity Administration System;
2. Blocking access to Customs Services; and
3. Restriction or blocking of access to other Public Services

 

Recommendations and/or requests for Restriction or Blocking may be submitted if the following criteria are met:

Type of Requirement	Description
The Taxpayer has Tax Debt with final and binding legal force of at least IDR 100,000,000 (one hundred million rupiah);	In the case of Restriction or Blocking of other Public Service access carried out to support the execution of seizure of land and/or buildings, this provision is excluded.
The Tax Debt has been notified through a Distress Warrant to the Taxpayer	–

How to Reopen the Restriction or Blocking?

Recommendations and/or requests to lift Restrictions or Blocking may be submitted if the following criteria are met:

1. All Tax Debt and Tax Collection Costs that form the basis of the Restriction or Blocking have been fully paid;
2. There is a tax court decision that results in the elimination of the Tax Debt that formed the basis of the Restriction or Blocking;
3. Seizure has been carried out as stated in the official report of seizure, with a value at least equal to the Tax Debt and Tax Collection Costs that formed the basis of the Restriction or Blocking;
4. Approval for tax installment payments has been granted for the Tax Debt that formed the basis of the Restriction or Blocking;
5. The right to conduct Tax Collection on the Tax Debt that formed the basis of the Restriction or Blocking has expired; or
6. Based on a proposal from the authorized official conducting Tax Collection actions.

 

Therefore, Regulation PER-27/PJ/2025 serves as a reminder for all taxpayers to remain disciplined in fulfilling their tax obligations. Do not let your business operations or personal needs be disrupted due to unresolved tax administrative issues.

 

Disclaimer:

• The information contained in this document is not intended as legal advice, legal opinion, or legal recommendation suitable for your business. The author has prepared this information in good faith and with reasonable care. However, no representation or warranty, either express or implied, is made regarding the accuracy, completeness, or timeliness of the information presented.
• Readers acknowledge that each company has different operational methods, therefore the information presented may not be relevant to all business activities.
• Readers are strongly advised to consult with a professional or contact us directly before taking any legal action based on the information in this document. By reading this document, readers are deemed to agree to release the author from any claims, damages, lawsuits, fines, or sanctions that may arise in connection with the information provided herein.