Services » Tax Return (SPT)

Tax Return Service

Written by Reyhan Adam Himawan on 06/08/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

Introduction

A Tax Return (Surat Pemberitahuan/SPT) is a document used by taxpayers to submit information related to income, sales, or other details that serve as the basis for calculating taxes to the tax authority. Understanding how this process works in Indonesia is crucial for compliance. This article will explore the details, types, and reporting requirements in Indonesia.

Definition

According to the Regulation of the Director General of Taxation number Per-02 / PJ / 2019 , a Tax Return (SPT) is a form utilized by taxpayers to report the calculation and/or payment of taxes, tax objects, non-tax objects, assets, and liabilities as stipulated in tax regulations.

Article 3, paragraph 1 of the law on general provisions of taxation outlines the functions of the tax return as follows:

Taxpayer	Function
Income Taxpayer	Reporting and accounting for the calculation of taxes actually owed and for reporting: Payment or repayment of taxes that have been paid by themselves or withheld or collected by other parties in one tax year; Income that is an object and or not a tax object; Property and liabilities; Payment from a tax withholding or collector in one tax period.
VAT Taxable Person	Reporting and accounting for the calculation of the amount of value-added tax and sales tax on luxury goods actually owed and for reporting: Crediting of input tax to output tax; Payment or repayment of taxes that have been carried out by yourself in one tax period;
Withholding Tax	Reporting the liability of withheld or collected and deposited taxes.

Types of Tax Returns

Based on the provisions of article 3 paragraph 1 of the Regulation of the Director General of Taxation number Per-2/PJ/2019, tax reports consist of annual and periodical submissions.

Annual: A notification letter submitted by the taxpayer for one tax year or part of a certain tax year, including:
- Personal Income Tax
- Corporate Income Tax
Periodical: A notification letter submitted for a certain tax period, including:
- Article 21 and 26 Income Tax
- Unification Income Tax
- Article 25 Income Tax
- VAT

The Unification Periodical Income Tax report is used to consolidate various types of income taxes, replacing the previous requirement where each tax type had its own submission.

The Importance of Tax Returns

Filing a tax return is a critical responsibility for every taxpayer. The necessity is underscored by the legal requirements and potential consequences of non-compliance. According to articles 38 and 39 of the general tax provisions law, taxpayers who fail to submit or submit incorrect information may face criminal sanctions. Additionally, article 7 specifies fines for delays.

The details regarding sanctions for late submission, non-submission, and incorrect submission are as follows:

Fines for Late Submission:
- Rp. 500,000 for VAT Periodical Tax Return
- Rp. 100,000 for other Periodical Tax Return
- Rp. 1,000,000 for Annual Corporate Income Tax Return
- Rp. 100,000 for Annual Personal Income Tax Return

Sanctions for Non-Submission or Incorrect Submission Due to Negligence:
- Fines ranging from 100% to 200% of the amount of taxes owed or underpaid; or
- Imprisonment for a minimum of three months and a maximum of one year.

Sanctions for Intentional Non-Submission or Incorrect Submission:
- Imprisonment for a minimum of six months and a maximum of six years; and
- Fines ranging from 200% to 400% of the amount of taxes owed or underpaid

These stringent penalties highlight the importance of timely and accurate tax return submissions to avoid severe legal and financial repercussions.

Benefits of Tax Returns

Filing tax returns offers several benefits beyond mere compliance with legal requirements. These benefits include:

Legal Compliance:
Ensures adherence to tax laws and regulations, thereby avoiding legal penalties and sanctions.
Financial Transparency:
Provides a clear record of income, expenses, and tax liabilities, which can be useful for financial planning and management.
Loan and Credit Applications:
Tax returns are often required by financial institutions when applying for loans or credit. They serve as proof of income and financial stability.
Avoidance of Penalties:
Timely and accurate filing helps avoid fines and penalties associated with late or incorrect submissions.
Audit Preparedness:
Maintaining accurate and timely tax records prepares taxpayers for potential audits by tax authorities, reducing the risk of disputes and additional liabilities.

How to/The Process

Submitting tax returns in Indonesia involves several methods and steps to ensure compliance with tax regulations. Based on the provisions of article 6 of the Regulation of the Director General of Taxation number Per-2 / PJ / 2019, the methods for submitting tax returns are as follows:

E-Filing:
- Directorate General of Taxation website
- E-SPT (Electronic Tax Return)
- Digital voice channels set by the Director General of Taxation for certain taxpayers
- Data communication network specifically connected between the Directorate General of Taxation and taxpayers
- Other channels stipulated by the Director General of Taxation
Direct Submission:
- Delivering the tax return directly to the Tax Office.
Postal Submission:
- Delivery by post with proof of delivery
Courier Services:
- Delivery through courier services with proof of delivery

Certain taxpayers are required to submit their tax returns electronically. The criteria for these taxpayers are as follows:

Type of Tax Return	Criteria
All Periodical Tax Return	Registered at the Medium Tax Office, Tax Office within the Regional Office of the Special Jakarta Directorate General of Taxation, and Tax Office within the Regional Office of the Directorate General of Taxation Large Taxpayers Tax Office; and/or Have submitted Periodic Tax Returns in the form of electronic documents;
Article 21/26 Income Tax Return	Make withholding of Article 21 and/or Article 26 Income Tax on permanent employees and recipients of pensions or old age benefits/periodic old age benefits and/or on state civil servants, members of the Indonesian National Armed Forces/Indonesian National Police, state officials and pensioners whose number is more than twenty people in one Tax Period; Make withholding of Article 21 (Non Final) and/or Article 26 Income Tax other than withholding Income Tax as referred to in first part with proof of withholding of more than twenty documents in one Tax Period; Make withholding of Income Tax Article 21 (Final) with proof of withholding of more than twenty documents in one Tax Period; and/or Make tax payments with a Tax Payment Slip or other administrative means whose position is equated with a Tax Deposit Letter which amounts to more than twenty documents in one Tax Period.
Unification Income Tax Return	Must be submitted by every income tax withholder in the form of an electronic document.
VAT Tax Return	Must be submitted by every Taxable Enterprise Person in the form of an electronic document.
Article 21/26 Income Tax Return	Registered at the Medium Tax Office, Tax Office within the Regional Office of the Special Jakarta Directorate General of Taxation, and Tax Office within the Regional Office of the Directorate General of Taxation Large Taxpayers Tax Office; Have submitted Annual Tax Returns in the form of electronic documents; Required to submit Article 21 Income Tax Return in the form of an electronic document; Required to submit Article 23 and or 26 Income Tax Return in the form of an electronic document; Required to submit VAT Tax Return in the form of an electronic document; Using tax consultant services in order to fulfill the obligation to fill out the Annual Income Tax Return; and/or Taxpayer financial statements are audited by a Public Accountant.

How We Can Help

Reporting is an obligation for every taxpayer. Failure to report or reporting with incorrect information, whether intentionally or negligently, can result in severe sanctions. Delays in reporting will also result in fines. Putranto Alliance provides comprehensive services to assist with these challenges. With extensive experience, Putranto Alliance can help ensure that all details are accurate, accountable, and submitted on time in accordance with tax provisions.

Services offered include:

Accurate Preparation: Ensuring all tax return details are correct and complete.
Timely Submission: Assisting with the timely filing of tax returns to avoid penalties.
Compliance Assurance: Making sure all tax returns comply with current tax laws and regulations.
Audit Support: Providing support in case of audits by tax authorities.
Consultation Services: Offering expert advice on tax-related matters to optimize tax liabilities and benefits.

FAQs

Can the tax return that has been submitted be corrected?

Yes, it can be corrected. However, if there is a tax deficiency as a result of the correction of the periodical or annual tax return, then the tax deficiency will be subject to interest sanctions.

Can the taxpayer apply for an extension of the time for submitting the tax return?

Taxpayers can apply for an extension of the time for submitting tax returns for a maximum of two months by submitting a notice to the Director General of Taxation.

Who Needs to File Tax Returns?

Every taxpayer is obliged to fill out the tax return correctly, completely, clearly, and in Indonesian, using Latin numerals, Arabic numerals, Rupiah currency units, and sign them and submit them to the office of the Directorate General of Taxes where the taxpayer is registered or another place determined by the Director General of Taxation.

Further provisions regarding tax returns that must be reported by taxpayers are regulated in the Regulation of the Minister of Finance of the Republic of Indonesia No. 234/PMK.03/2014 as amended by Regulation of the Minister of Finance of the Republic of Indonesia No. 9/PMK.03/2018.

What are the exceptions to the Obligation to Report Periodical Tax Returns?

The obligation to report Income Tax Article 21 and/or Article 26 withheld does not apply if the amount of tax withheld is nil for the relevant tax period, except for the tax period in December.

Individual taxpayers who earn or receive annual income not exceeding non-taxable income are exempt from the obligation to report Article 25 Periodical Income Tax Return.

Taxpayers who do not carry out business activities or do not do freelance work are excluded from the obligation to submit Article 25 Periodical Income Tax Returns.

Taxpayers with Article 25 income tax installments of nil are excluded from the obligation to submit Article 25 Periodical Income Tax Returns.

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