The Director General of Taxes officially issued Director General of Taxes Regulation Number PER-26/PJ/2025 on Procedures for the Seizure and Sale of Securities in the Form of Shares Trading on the Capital Market for the Purpose of Tax Collection. This regulation came into effect on December 31, 2025, in accordance with the date of its enactment. The regulation stipulates that the Director General of Taxes may seize taxpayer property in the form of shares traded on the capital market in accordance with article 3 paragraph 1. In the following paragraph, in the context of seizing assets in the form of shares, the Director General of Taxes is required to have a securities account, customer fund account, and temporary deposit account in the name of the Directorate General of Taxes.
In addition to having the authority to seize and sell shares traded on the capital market, the DGT also has the authority to block shares in sub-accounts and assets stored in taxpayer customer fund accounts. Based on article 5 paragraph 1, blocking can be carried out if a seizure order has been issued and information regarding the taxpayer’s financial accounts is available. The request for blocking must be submitted to the Financial Services Authority to convey a written order to the depository and settlement institution to block the taxpayer’s securities sub-account shares and customer fund account bank accounts, or the balance of the taxpayer’s assets.
If the taxpayer has not paid by the time the blocking report or equivalent document is received, the tax collector may proceed with seizure. In the event of seizure, the tax collector must, in accordance with article 7 paragraph 3, prepare a seizure report signed by the tax collector, the taxpayer, witnesses, and the depository and settlement institution, and submit a copy of the seizure report to the taxpayer and the customer’s account bank.
In accordance with article 8 paragraph 1, if within 14 days after the seizure, the taxpayer does not pay the tax debt and tax collection costs, the DGT may sell the taxpayer’s seized shares to pay off the tax debt and tax collection costs and transfer the balance of assets stored in the taxpayer’s customer fund account to the customer fund account of the Directorate General of Taxes.
Based on Article 14 paragraph 1, if there is excess money from the sale of shares and/or excess shares that have been seized after deposit, the DGT will return the excess to the taxpayer and return it through the taxpayer’s financial account. After the excess shares have been returned, the tax officer will make a report on the return of the seized items.
By Olina Rizki Arizal – Partner
TBrights is a tax consultant in Indonesia that is currently an Integrated Business Service in Indonesia that can provide comprehensive tax and business services.
References:
- Director General of Taxation Regulation Number PER-26/PJ/2025 concerning Procedures for the Seizure and Sale of Securities in the Form of Shares Traded on the Capital Market for the Purpose of Tax Collection.
