Constitutional Court Rejects Material Test on Pension Tax

The Constitutional Court (MK) on Thursday, 30 October 2025, rejected a material test request concerning pension tax provisions in Law No. 7/2021 on Harmonisation of Tax Regulations. The petition, numbered 170/PUU-XXIII/2025, was filed by Rosul Siregar and Maksum Harahap, represented by counsel Ali Mukmin.

Justice Arsul Sani noted that the petition was not drafted carefully, citing inconsistencies and errors in citing the legal norms to be tested. He also pointed out that the petitum (final request) lacked clear alternatives, violating the principles of clarity and legal certainty.

The court’s rejection leaves the pension tax rules in force, while a separate petition (number 186/PUU-XXIII/2025) remains pending. Consequently, taxpayers will not see an immediate change in the taxation of severance pay, pensions, old‑age benefits (THT) and old‑age security (JHT).