Not Reporting Corporate Tax Return Can Be Fined & Criminalized

April 30, 2024 is the last day of the deadline for reporting the 2023 Annual Tax Return (SPT) for corporate taxpayers. Therefore, the Directorate General of Taxes (DGT) urges corporate taxpayers to immediately report the Annual Tax Return before the deadline.

Because, based on Law No. 28 of 2007 concerning General Provisions and Tax Procedures (KUP Law), corporate taxpayers who are late in reporting the Annual Tax Return will be subject to sanctions in the form of fines, tax administration interest, and criminal penalties.

What is a corporate tax return?

Annual Corporate Tax Return is a letter used to report tax payments, tax objects and non-objects, assets and liabilities of the company in accordance with applicable tax laws and regulations. Unlike the personal Annual Tax Return which has more than one form, the Corporate Annual Tax Return only has one type of form, namely the SPT 1771 form.

Business entities or companies that use SPT 1771 are applied to business entities such as Limited Liability Companies (PT), Commanditer Venture (CV), Trade Enterprises (UD), organizations, foundations and associations.

The rules regarding the obligation to report the annual corporate income tax return are regulated in Directorate General of Taxes Regulation No. PER-30/PJ/2017 concerning the Fourth Amendment to PER-34/PJ/2010.

Provisions for Corporate Tax Return Reporting

There are several things that corporate taxpayers need to know regarding the reporting of the Annual Corporate Tax Return, including:

Fill out the tax return correctly, completely, and clearly.
The SPT must be filled in Indonesian, using Latin letters and units of Rupiah or foreign currency with permission from the Ministry of Finance.
Taxpayers are required to sign the tax return.
Submission of SPT in accordance with the Tax Office where the taxpayer is registered.
Taxpayers can apply for an extension of the Annual Income Tax Return reporting time within a maximum period of two months from the reporting deadline.
The extension of reporting time must be submitted to the DGT before the reporting deadline.
Attach supporting documents in accordance with the provisions stipulated in the Minister of Finance Regulation.

What are the Sanctions for Late and/or Non-Reporting of Corporate Income Tax Return?

Based on the regulations in the Law on General Provisions and Tax Procedures (UU KUP), corporate taxpayers who are late or do not report their annual tax return will be subject to sanctions in the form of fines to criminal sanctions. The amount of the fine for late reporting the Annual Corporate Tax Return is IDR 1 million. In addition, tax administration interest sanctions are also imposed based on the Bank Indonesia (BI) benchmark interest rate in accordance with Law No. 7 of 2021 concerning Harmonization of Tax Regulations. Meanwhile, criminal sanctions for corporate taxpayers who deliberately do not report their Annual Tax Return in the form of imprisonment in accordance with Article 39 paragraph (1) of the KUP Law. Imprisonment for a minimum of 6 months and a maximum of 6 years for corporate taxpayers who deliberately do not report their Annual Tax Return.

Criminal sanctions are also given to any entity that intentionally does not register to be given an NPWP or does not report its business to be confirmed as a Taxable Entrepreneur, misuses or uses without the right to NPWP or Pengukuhan Pengusaha Kena Pajak.

KH Contact

Those are some of the sanctions imposed on corporate taxpayers who are late and/or intentionally do not report the Annual Tax Return. This form of sanction is the last effort that will be made by the government so that taxpayers have the awareness to report the Annual Tax Return. Moreover, the government has also facilitated access to Annual Tax Return reporting either by manually coming to the nearest pratama tax service office, through the DGT tax representative service telephone hotline, to online on the website. So, what are you waiting for? Immediately report the Annual Corporate Tax Return before April 30, 2024! If you still have difficulties or questions, you can just leave it to Contract Law. In order to bring convenience in taking care of business needs including taxation, Kontrak Hukum presents the first subscription service in Indonesia Digital Business Assistant (DiBA). Subscribing to DiBA is like having a complete team because we can provide tax reporting services, to finance and other legalities. Guaranteed to be easy, safe, and affordable because it will be handled directly by experienced professionals.

For more information, visit KH Services – DiBA page. If you have any other questions, you can also consult for free via Tanya KH or send a direct message (DM) to Instagram @kontrakhukum. With KH, #semuajadiberes!