As is known, the deadline for corporate Annual Tax Return (SPT) reporting is April 30, but taxpayers can apply for an extension of time through procedures established by law. Yes, the Directorate General of Taxes (DGT) provides an opportunity for corporate taxpayers to apply for an extension of the Annual Tax Return reporting time by fulfilling the requirements accompanied by the attachment of several documents. This is in accordance with the provisions contained in DGT Regulation No. PER-21/PJ/2009 concerning Procedures for Submitting Notification of Annual Tax Return Extension. Then, how long is the extension period for the reporting of the agency’s Annual Tax Return? And what are the terms and conditions?
Deadline for Extension of Corporate Tax Return Reporting
The time limit for requesting a postponement or extension of the Annual Tax Return reporting time in Indonesia has been regulated in the tax laws and regulations. Corporate taxpayers can submit an application for extension or postponement of Annual Tax Return reporting within a maximum period of up to two months from the normal deadline for Annual Tax Return submission. So, if the normal deadline for corporate Annual Tax Return reporting is until April 30, then the limit can postpone its submission until June 30 of the same year. This is also stated in Article 2 of the Director General of Taxes Regulation No. 21/PJ/2009 related to the Procedure for Submitting Notification of Annual Tax Return Extension, stated as follows:
- The deadline for submission of Annual Tax Return for Corporate Taxpayer is at the latest 4 months after the end of the Tax Year.
- Corporate Taxpayers may apply for an extension of the deadline for submitting Annual Tax Return up to a maximum of 2 months calculated from the deadline for submitting Annual Corporate Tax Return, which is done by submitting Annual Tax Return Extension Notice.
Requirements for Filing an Extension of Corporate Tax Return Reporting
Corporate taxpayers can apply for an extension if they cannot submit the Annual Tax Return in accordance with the set deadline for certain reasons. “Due to the extent of business activities and technical problems in preparing financial statements, or other reasons, it is difficult to meet the completion deadline and requires leeway from the predetermined time limit,” reads the explanation of Article 3 paragraph (4) of the KUP Law. In other words, the relevant reason related to the obstacle of the Public Accounting Firm (KAP) that has not been able to complete the audit of the company’s financial statements is because the corporate taxpayer has more businesses. Furthermore, the requirement that must be met by the corporate taxpayer is to make a notification in the form of SPT-Y form and submitted to the Tax Office (KPP) before the deadline for submitting the annual corporate tax return ends-before April 30. DGT also elaborated that based on Article 14 of Minister of Finance Regulation (PMK) Number 243/PMK.03/2014, the application for extension of annual tax return submission time is submitted by attaching several documents, namely provisional calculation of tax payable in one tax year whose submission deadline is extended; provisional financial statements; Tax Payment Slip (SSP) or other administrative means whose position is equal to SSP.
READ ALSO: Haven’t filed your annual tax return yet?
“SSP as proof of repayment of the tax underpayment owed, in the event that there is a tax underpayment,” added the DGT.
What is the Procedure for Submitting an Application for the Extension of Corporate Income Tax Return?
In accordance with Article 4 paragraph (1) and paragraph (2) of PER-21/PJ/2009, the following are the procedures that must be carried out by Corporate Taxpayers in applying for an extension of Annual Tax Return reporting, among others:
- Taxpayers must make a notice of extension of the Annual Tax Return made in writing in the form 1771-Y.
- The form must be signed by both the taxpayer and the appointed proxy by attaching a power of attorney.
- The taxpayer must explain the reason for needing the time allowance. The reason is filled in the column provided on form 1771.
The submission can be submitted directly, by post by attaching proof of mailing, or by other means. The other method referred to here is that it can be delivered through an expedition service company or courier service by enclosing proof of mailing, and can be through e-filing through an ASP in accordance with applicable regulatory provisions. Based on the direct submission of the renewal notice, the Taxpayer will be given a receipt of the letter. Meanwhile, for Taxpayers who submit it by post, they will be given Electronic Receipt (BPE). The receipt received if submitting the notification directly or submitting it using the expedition service, then the receipt becomes the Receipt of the Annual Tax Return Extension Notification submitted.
KH Contact
That is the explanation about the request for an extension of the corporate Annual Tax Return reporting period. If you have submitted an extension request, then the corporate taxpayer can postpone the SPT reporting until June 30. If it exceeds the submission deadline, a late penalty of Rp1 million will be imposed, in accordance with what has been regulated in the KUP Law. So, what about your business entity, have you done the Annual Tax Return reporting? Or apparently still need time but don’t know how to apply for an extension? Just leave the management to Kontrak Hukum!
In order to make it easier for businesses to run their business, we present the first subscription service in Indonesia, Digital Business Assistant (DiBA) for all backoffice needs, including taxation, finance, and legality. Let’s fulfill your business entity tax obligations with KH by visiting the KH Services – DiBA page. If you still have questions, you can also consult for free at Tanya KH or send a direct message (DM) to Instagram @kontrakhukum.
