LTO Tax Office Revenue Reaches 56.3 Percent of 2025 Target

JAKARTA – The Large Taxpayer Office (Kanwil LTO) of the Directorate General of Taxes recorded tax revenue of Rp413.89 trillion up to 30 September 2025. This amount represents 56.3 percent of the annual target of Rp734.71 trillion. The figures were released in an official statement on 28 November 2025.

The shortfall is attributed to several factors, including the implementation of Ministry Regulation No.74/2024 on uncollectible receivables for banks, the average effective rate (TER) applied to Income Tax Article 21, as well as commodity price volatility and higher restitutions. In addition, Government Regulation No.15/2022 governing coal mining taxation and Ministry Regulation No.59/2022 on tax withholding by government agencies also reduced main tax collections. Consequently, most major tax types contracted compared with 2024.

Despite the lower collection, taxpayer compliance remains high, with 95 percent (1,882 of 2,003) filing tax returns on time. Kanwil LTO is responding by intensifying period‑payment monitoring, material compliance testing, group taxpayer oversight, arrears collection, legal enforcement, and education on the tax system transition. These measures aim to improve revenue performance for the remainder of the fiscal year.