Taxpayers in arrears, shares can be seized by the state

JAKARTA - The Directorate General of Taxes (DJP) of the Ministry of Finance has issued a new policy that regulates the mechanism for seizing and selling shares traded on the capital market as part of the tax collection process.

With this provision, shares listed on the exchange can be used as a seizure object to guarantee the payment of tax obligations.

The rules are contained in the Director General of Taxes Regulation Number PER-26/PJ/2025 which was established on December 31, 2025.

This regulation is the implementing regulation of Minister of Finance Regulation (PMK) Number 61 of 2023 concerning the Procedure for the Implementation of Tax Collection on the Amount of Tax that Still Has to Be Paid.

In his consideration, it was mentioned that the state has the authority to seize and sell assets belonging to taxpayers in the form of shares traded on the capital market to pay off tax arrears, as stipulated in PMK Number 61 of 2023.

"In order to carry out tax collection, based on PMK Number 61 of 2023 concerning the Procedure for the Implementation of Tax Collection on the Amount of Tax that Still Has to Be Paid, the state has the authority to seize and sell the goods belonging to the taxpayer in the form of shares traded in the capital market," wrote the rules, quoted Thursday, January 15.

To carry out the seizure of the shares, the Director General of Taxes is required to have an account for securities, a customer fund account, and a temporary storage account in the name of the DJP.

"In order to carry out the seizure, officials must first submit a request for notification of the Taxpayer's Financial Account number and a notification of the balance of the Taxpayer's wealth information addressed to the Storage and Settlement Institution," Article 4 paragraph (1) reads.

DJP is also required to block first the shares listed in the sub-account of securities as well as the funds stored in the customer fund account belonging to the taxpayer.

This blocking was carried out after a seizure order was issued and the DJP obtained complete data on the taxpayer's financial accounts, such as the number of Single Investor Identification (SID), sub-account for securities, type and number of shares, and customer fund accounts.

The application for blocking shares was submitted through the Financial Services Authority (OJK) to the Deposit and Settlement Institution, while the blocking of funds was carried out through the bank providing customer fund accounts.

At the request, the relevant institution is obliged to make a blocking minutes or similar document as stipulated in Article 5 paragraph (5).

If after the blocking of the taxpayer has not paid the tax debt and the collection costs, the tax officer is authorized to seize it.

Meanwhile, the seized objects can be shares in sub-accounts and/or fund balances in customer fund accounts belonging to the taxpayer.

Furthermore, if within 14 days of the seizure of tax obligations have not been met, the DJP can sell the seized shares through the stock exchange with the intermediary of the stock trader of the exchange member, in accordance with the provisions of laws and regulations in the field of capital markets.

"Officials sell shares belonging to taxpayers on the stock exchange through intermediaries of securities traders members of the exchange in accordance with the provisions of laws and regulations in the field of capital markets," reads Article 8 paragraph (2).

The selling price of shares is set at least equal to the opening price of the market on the day of the sale.

In addition, DJP also has the option to transfer the balance of customer funds to the DJP account to be deposited into the state treasury.

The proceeds from the sale of shares, after deducting collection costs, intermediary costs, taxes, and other administrative costs, are used to pay off tax debts and if there is an excess of funds or shares after tax obligations are met, DJP is obliged to return them to the tax payer according to the mechanism set out in the regulation.

After the process of returning excess shares is completed, the tax officer is required to prepare a record of the return of seized goods as stipulated in Article 14 paragraph (4).