The Legal Status of Company Employees as Taxpayer Proxies: Position, Competency, and Legal Implications

Provisions of Article 32 The Law on General Provisions and Tax Procedures (UU KUP) affirms that Corporate Taxpayers are represented by the Management in exercising their rights and fulfilling tax obligations. In business practice, the management or Director often delegates the execution of tax actions to internal employees through the appointment of a power of attorney. The issuance of Minister of Finance Regulation (PMK) Number 44 of 2026 concerning Tax Consultants and Other Parties Acting as Taxpayer Representatives changes the formal legal framework regarding the boundaries of legality, qualification standards, and the legal responsibilities of employees acting on behalf of the company before the Directorate General of Taxes (DJP).

For company leadership, Directors, and Tax Managers, a deep understanding of the operational boundaries, competency standards, and legal consequences of internal tax actions becomes very crucial to ensure tax compliance (tax compliance) and to mitigate the risk of administrative as well as criminal sanctions.

Legal Position of Employees and Limits of Power of Attorney Appointment

Employee Position: Regular Employee vs. Other Parties

Under the regime of the Manpower Law and UU KUP, employees act for and on behalf of the company based on an employment relationship (employment contract). However, in formal tax law, this employment relationship status does not automatically grant formal legal authority (legal standing) to act as a representative or proxy for the Corporate Taxpayer.

Article 2 paragraph (2) of PMK Number 44 of 2026 limits the parties who can receive a power of attorney from the Taxpayer to only three categories:

• Tax Consultants;
• Other Parties; and
• Family (specifically for Individual Taxpayers).

┌─────────────────────────────────────────────────────────────────┐
│           Taxpayer Representative Categories (PMK 44/2026)      │
├───────────────────┬─────────────────────────────┬───────────────┤
│  Tax Consultant   │        Other Parties        │   Family      │
│ (Practice License)│(SKT & P2PK Competency Test) │  (Individual  │
│                   │    [Including Employees]    │   Taxpayer)   │
└───────────────────┴─────────────────────────────┴───────────────┘

Company employees who will be appointed by the Director (as the Taxpayer Representative according to Article 32 of UU KUP) to become a Taxpayer Representative must have the status of an Other Party. Employees do not have a sui generis or special path outside the Other Party category if the actions taken fall under the qualification of actions requiring a Special Power of Attorney.

When Must a Company Employee Become an Other Party?

An employee is required to undergo qualification and be registered as an Other Party if appointed through a Special Power of Attorney to exercise rights and/or fulfill certain tax obligations that legally bind the company.

Tax actions that require a Special Power of Attorney and mandate Other Party status include:

• Signing the Annual Tax Return (SPT) or Periodic Tax Return (if not signed directly by the Director/Management registered in Coretax).
• Attending and conducting the final discussion (closing conference) with tax auditors during a Tax Audit or Preliminary Evidence Audit.
• Submitting responses, clarifications, or official answers verbally or in writing to the Request for Explanation of Data and/or Information (SP2DK) or the Notification of Audit Results (SPHP).
• Filing and signing requests for objection, reduction/cancellation of tax assessments, or other strategic administrative requests.

Employee Tax Activities Without a Special Power of Attorney

The DJP strictly distinguishes between Representative Legal Actions (Legal Representation: requires a Special Power of Attorney) and Administrative-Operational Actions (Support/Drafting: does not require a Special Power of Attorney). Employees can perform various technical tax activities without needing to become an Other Party and without a Special Power of Attorney.

                     Employee Tax Actions
                               │
      ┌────────────────────────┴────────────────────────┐
      ▼                                                 ▼
   Legal Actions (Needs Proxy)          Operational Actions (Without Proxy)
──────┬─────────────────────────────────   ──────┬────────────────────────────
      ├─ SPT Signing (Signer)                    ├─ SPT Drafting
      ├─ Final Audit Discussion                  ├─ Issuance of Tax Invoices/Bupot
      └─ Objection/Appeal Submission             └─ Document Submission to TPT

Classification of Proxy-Free Operational Activities

• Drafting and Data Inputting (Tax Preparer / Drafter): Collecting transaction data, inputting transaction data, reconciling commercial to fiscal financial statements, preparing drafts for Annual/Periodic SPT, up to creating tax payment billing codes. In the Coretax ecosystem, this access role is categorized as a drafter which is not legally binding.
• Issuance of Routine Transactional Documents: Creating and signing electronic Tax Invoices (e-Faktur) as well as Tax Withholding/Collection Proofs (e-Bupot). The appointment of employees as e-Faktur/e-Bupot signers is carried out through the system administration appointment mechanism without the need for a Special Power of Attorney.
• Submission and Receipt of Physical/Administrative Documents: Delivering or physically submitting tax files/documents to the Integrated Service Place (TPT) at the Tax Service Office (KPP) or receiving official documents from the KPP. The employee only acts as a messenger (messenger) for documents that have been legally signed by the authorized Management/Director.
• General Consultation Without Disclosing Confidential Data: Attending general consultation sessions or KPP helpdesks regarding procedures for using applications or clarifying general technical rules without opening or accessing specific taxpayer data or discussing specific taxpayer data disputes.

Matrix of Internal Tax Roles Comparison

Competency Standards, Competency Tests, and SKT Provisions

The regulation of Article 3 of PMK Number 44 of 2026 affirms that all parties acting as Taxpayer Proxies must have certain competencies in the field of taxation.

Employee Competency Test Obligation

Based on PMK Number 44 of 2026, the legitimacy of the Other Party is ensured through objective qualification standards managed by the Center for Functional Position Development and Quality Assurance of the Financial Education and Training Agency of the Ministry of Finance.

Employees who will be appointed as Taxpayer Proxies must take and be declared to have passed the Taxation Competency Test (Article 7 PMK 55 of 2026). This competency test is organized by the Competency Test Management Unit in the Ministry of Finance, namely the Center for Functional Position Development and Quality Assurance of the Financial Education and Training Agency.

                   Other Party Certification Flow
                               │
      ┌────────────────────────┴────────────────────────┐
      ▼                                                 ▼
 Competency Test Registration           Competency Test Implementation
      (MoF Portal)                           (Competency Standards)
      │                                                 │
      └────────────────────────┬────────────────────────┘
                               ▼
               Passed: Certificate of Competency
                               │
                               ▼
                   Issuance of SKT by P2PK
                  (Validity Period 3 Years)

Participant Prerequisites:

• Indonesian Citizen (WNI).
• Have a NIK integrated/activated as a NPWP.
• Registered in the P2PK registration information system of the Ministry of Finance.

Competency Certificate Categories:

• Level A: To represent the execution of rights/obligations of Individual Taxpayers.
• Level B: To represent the execution of rights/obligations of Corporate Taxpayers (the main standard for Tax Managers/Company Employees).
• Level C: For the execution of international tax rights and obligations and transfer pricing.

Obligation to Have a Registered Certificate (SKT) and Validity Period

The Registered Certificate (SKT) is a legality document issued by the Minister of Finance (through P2PK) stating that the Other Party has the formal qualifications to act as a Taxpayer Proxy (Article 1 point 7 PMK 44 of 2026).

• When Must Employees Have an SKT? Starting January 1, 2027, employees (as Other Parties) must have an SKT before being appointed through a Special Power of Attorney. Without a valid SKT, the employee cannot be appointed as a proxy, and the DJP has the right to reject documents or their presence because they are not registered in the tax administration system. (Article 3 paragraph 4 PMK 44 of 2026)
• SKT Validity Period: SKT for Other Parties is valid for 3 (three) years from the date of issuance. Unlike Tax Consultants who must fulfill annual PPL, the extension of the Other Party's SKT is done through a Refresher Exam passing mechanism to maintain the active status of their Certificate of Competency (SKK) (Article 10 paragraph 7 and paragraph 9 PMK 55 of 2026).

Brevet Certificate Transition Period (Until December 31, 2026)

In order to maintain Taxpayer operational continuity, Article 16 of PMK Number 44 of 2026 provides a transition period:

                 Transition Period Rules (Article 16 PMK 44/2026)
                               │
      ┌────────────────────────┴────────────────────────┐
      ▼                                                 ▼
    Until December 31, 2026                      Starting January 1, 2027
──────┬────────────────                          ──────┬───────────────
      ├─ Tax Brevet Certificate                        ├─ Must Have P2PK SKT
      └─ D3/S1 Taxation Diploma (Accred A)             └─ (Brevet No Longer Valid)

• Transition Provisions: Until December 31, 2026, employees who have a Brevet Certificate or Formal Taxation Education Diploma (minimum D3 Accredited A) can still act as Taxpayer Proxies.
• Post-Transition Provisions: Starting January 1, 2027, regular Brevet Certificates will no longer be valid as proof of proxy qualifications. All employees acting as proxies must pass the P2PK Competency Test and hold an SKT.

Risk Analysis and Legal Implications for Employees in the Other Party Route

Becoming a Taxpayer Proxy via the Other Party Route carries significant legal consequences. The act of acting as a Taxpayer Proxy via the Other Party Route shifts a portion of formal responsibilities onto the employee's shoulders personally. Employees are no longer only responsible internally to the management ranks (such as the board of directors), but have direct legal responsibility before state law.

                     Legal Risks of Other Parties
                               │
      ┌────────────────────────┼────────────────────────┐
      ▼                        ▼                        ▼
 Administrative Sanctions     Tax Criminal Risks     Material Responsibility
────────────────────     ───────────────────     ───────────────────────
 Suspension/Revocation    Article 39/39A UU KUP   Losses Remain with the
 of P2PK SKT              (False Information)     Taxpayer (Company)

1. Legal Responsibility and Restriction on Substitution

According to Article 2 paragraph (3) of PMK Number 44 of 2026, although the appointment of power of attorney is given to an employee, the material responsibility for the payment of tax owed remains with the Taxpayer (Company). However, the employee as the proxy assumes full responsibility for the validity, formal correctness, and integrity of the authorized process.

In addition, based on Article 8 paragraph (3) of PMK Number 44 of 2026, a Taxpayer Proxy is strictly prohibited from delegating (waiving/substituting) the power received to another person. Employees who have received a Special Power of Attorney must carry out the tax actions themselves and cannot delegate them to subordinate staff.

2. Administrative Sanctions and SKT Revocation

Other Parties proven to have violated tax provisions, provided incorrect information, or violated the code of ethics may be subject to sanctions in the form of:

• Written warnings.
• SKT Suspension: Suspending the authority to act as a proxy across any Taxpayer during the sanction period; or
• SKT Revocation: Permanent cancellation of the registered status as an Other Party announced in the P2PK database.

3. Tax Criminal Responsibility

Although material responsibility in the form of settling tax debts or material losses for tax underpayments remains attached to the company as the Taxpayer, the employee acting as a Taxpayer Proxy bears personal criminal responsibility. Based on Article 9 of PMK 44/2026, a proxy is strictly prohibited from providing misleading information or false documents during the compliance or tax audit process. If a violation occurs, the employee can be charged with tax criminal sanctions (as regulated in Article 39 or 39A of the UU KUP).

From a criminal law perspective, the signing of the Special Power of Attorney positions the employee as an independent legal subject who assumes full responsibility for their actions. Therefore, the doctrine of complicity (deelneming) can be applied, and employees cannot use the defense of 'only following orders from superiors' (befehl ist befehl) to escape criminal tax charges if they are proven to have consciously engineered transactions.

Conclusion and Strategic Management Recommendations

The regulatory changes in PMK Number 44 of 2026 require companies to restructure their administrative governance and tax roles. The appointment of employees as Taxpayer Proxies demands the fulfillment of strict formal qualifications through the Other Party scheme. The implementation of PMK Number 44 of 2026 clarifies the legal boundaries between executing routine administrative tasks and legal representation actions. The Board of Directors and company management need to take the following mitigation steps:

• Coretax Access Rights Structure Optimization (Role Mapping): Immediately separate the employee ranks into two segments: the operational team (Drafter / Administrative Staff) and the proxy team (Authorized Signer). Register internal employees under the Drafter or Preparer access rights scheme for routine tasks to avoid the excessive need for Special Powers of Attorney. Restrict proxy appointments only to Managers or the Head of Tax.
• P2PK Certification Fulfillment Program: Utilize the transition period until December 31, 2026, for employees with a Brevet/Tax Education background. Schedule the participation of the company's Tax Manager or Senior Tax Specialist in the P2PK Competency Test before the transition deadline of December 31, 2026, to maintain legal certainty in representing the company during audit actions.
• Standard Operating Procedure (SOP) for Document Signing: Ensure all strategic legal documents (Annual SPT, SPT Amendments, SP2DK Response Letters, SPHP Response Letters, SPUH Response Letters, and Objection Letters) continue to be signed directly by the Director/Management as the Taxpayer Representative.

FAQ

Q1: Are company employees required to become Other Parties if appointed as a Taxpayer Proxy?

A1: Yes. Based on PMK Number 44 of 2026, employees appointed through a Special Power of Attorney to exercise certain tax rights and obligations of the company must be registered and fulfill the qualifications as an Other Party, complete with a Registered Certificate (SKT) from P2PK.

Q2: When is the deadline for using brevet certificates for employees who become Taxpayer Proxies?

A2: Brevet certificates or formal taxation education diplomas (minimum D3 Accredited A) can only be used to fulfill proxy requirements until December 31, 2026. Starting January 1, 2027, employees must pass the P2PK Competency Test and hold an SKT.

Taxation Regulatory References

• Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, most recently by Law Number 7 of 2021 concerning the Harmonization of Tax Regulations (UU KUP/HPP).
• Minister of Finance Regulation Number 44 of 2026 concerning Tax Consultants and Other Parties Acting as Taxpayer Representatives.
• FAQ PMK 44 of 2026
• Minister of Finance Regulation Number 55 of 2026 concerning Tax Consultants and Other Parties Acting as Taxpayer Representatives.