The Ministry of Finance is currently intensifying efforts to clean up the administration of approximately 1.1 million taxpayers who are recorded as active but no longer carry out operational activities. This phenomenon, known as "ghost businesses," occurs because many business entities are no longer at their registered addresses, but their official dissolution procedures are still stalled, thereby burdening the country's tax database system.
This backlog of cases is caused by various complex factors, ranging from processing resource constraints, difficulties in tracking corporate legal representatives, to indications of the use of false information in business establishment. This condition not only hinders the effectiveness of tax supervision but also complicates matters for business actors wishing to legally restructure or close their businesses in the future.
As a solution, the government has proposed Draft Bill Number 108/2025 on Tax Administration. This regulation emphasizes digital transformation and risk-based management, where field audits will now be prioritized only for entities indicated to have high risks, instead of conducting inefficient comprehensive checks.
In the draft regulation, it is proposed that tax authorities have the authority to initiate bankruptcy proceedings for companies proven to have abandoned their business domicile or failed to settle their tax obligations for more than three years. This step is in line with the national campaign "Tax Identification Number Cleanup" which aims to thoroughly standardize taxpayer data.
Furthermore, the Ministry of Finance will strengthen coordination with the Ministry of Public Security to crack down on individuals who abuse legal entities or tax invoices for fraudulent actions. Through this synergy, the government hopes to create a business ecosystem that is more transparent, accountable, and provides administrative convenience for entities that are actually operating in the market.
