The deadline for submitting the 2021 Annual Income Tax Return for corporate taxpayers (SPT Tahunan Badan) will end on April 30. For information, the Annual Corporate Income 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. Every business entity that has been registered as a taxpayer and has a Taxpayer Identification Number (NPWP) is required to report the Annual Income Tax Return. The type of Annual Income Tax Return referred to is Annual Income Tax Return Form 1771. The Annual Income Tax Return contains income, expenses and calculation of income tax (PPh) payable within one tax year. Business entities or companies that use SPT 1771 apply to business entities such as Limited Liability Companies (PT), Commanditer Venture (CV), Trade Enterprises (UD), organizations, foundations and associations. Business entities must submit the Annual Tax Return correctly, completely and clearly no later than 4 months after the end of the tax year or before April 30. To find out more about the Annual Income Tax Return, how to report the Annual Income Tax Return for corporate taxpayers, and the sanctions obtained by business entities if they do not report the Annual Income Tax Return, the explanation is as follows.
Definition of Annual Tax Return
Quoted from the Director General of Taxes’ website, the notification letter, hereinafter referred to as SPT, is defined as a letter used by taxpayers to report the calculation and / or payment of taxes, tax objects and / or non-tax objects, and / or assets and liabilities in accordance with the provisions of tax laws and regulations. Meanwhile, the Annual Income Tax Return (Annual Income Tax Return) is an Income Tax Return for a Tax Year or Part of a Tax Year, which includes an Individual Annual Return and a Corporate Annual Return.
Taxpayer
According to Law No. 28 of 2007, taxpayers are defined as individuals or entities, including taxpayers, tax withholders, and tax collectors, who have tax rights and obligations in accordance with the provisions of tax laws and regulations. The entity referred to is a group of people and/or capital that constitutes a unit both conducting business and not conducting business which includes:
- Limited liability company.
- Limited liability company.
- Other companies.
- State-owned enterprises or regional-owned enterprises by whatever name and in whatever form.
- Firm.
- Kongsi.
- Cooperative.
- Pension fund
- Alliances.
- Association.
- Foundation.
- Mass organizations, socio-political organizations, or other organizations.
- Institutions and other forms of entities including collective investment contracts and permanent establishments.
How to Report Annual Corporate Income Tax Return
Submission of the Annual Income Tax Return report for corporate taxpayers can be done in various ways, including:
Come directly to the Tax Office (KPP)
Taxpayers can report the Annual Tax Return directly to the Tax Office, where the taxpayer is registered. However, with the Covid-19 pandemic, this is not preferred. If taxpayers are forced to come to the Tax Office, then taxpayers can take a queue ticket online first by filling out the page https://kunjung.pajak.go.id/app. After getting a queue number, taxpayers are required to go to the Tax Office according to the specified schedule.
Sent by Post/Expedition Service
If the taxpayer chooses to send the Annual SPT report by post or expedition service, the Annual SPT must be inserted into a sealed envelope and on the outside an information sheet has been attached. The information sheet can be downloaded from https://www.pajak.go.id/id/lembar-informasi-amplop-spt-tahunan. If it has been sent, then the proof mark and date of sending the letter can be considered as evidence. So, don’t throw away the proof of delivery.
Through DGT Online
The third way to report the Annual SPT for corporate taxpayers is online through electronic services. The mechanism for reporting Annual Tax Return for corporate taxpayers is called e-filing service. Before reporting taxes online, taxpayers are required to have an Electronic Filing Identification Number (EFIN). To obtain an EFIN, taxpayers must make an application to the nearest tax office or tax office where the taxpayer is registered.After obtaining an EFIN, taxpayers must register on the DJP Online website. The next step that taxpayers must do is upload the CSV of the SPT 1771 form and the required attachments. After uploading it, taxpayers will receive an email containing a receipt, immediately save and archive the receipt because the email is proof of electronic receipt of the Annual Tax Return.
Through Legal Contract
Taxpayers can also report the Annual Tax Return through Kontrak Hukum. Contract law is the right choice for KH friends who want to avoid sanctions and report the Annual SPT easily considering that the company’s tax reporting activities will be handled by trusted professionals.
Attachments for Annual Tax Return
As mentioned earlier, in addition to the 1771 SPT form, there are complementary documents that must be attached by corporate taxpayers when reporting the Annual SPT. The documents in question include:
- Balance sheet/financial statement containing data on assets, liabilities, and capital.
- An income statement that contains data on income and expenses, as well as sales and purchases.
- Public accountant audit report.
- Current account/company savings account
- Company deed.
- Other tax-related documents such as periodic tax returns, withholding receipts, and proof of payment of tax bills if taxpayers make payments.
- Nominative list of entertainment expenses (if any).
- Nominative list of promotion costs (if any)
Sanctions for Not Reporting Annual Tax Return
Based on Law No. 16 of 2009, the fourth amendment to Law No. 6 of 1983 concerning General Provisions and Tax Procedures (KUP Law), the amount of sanctions imposed for corporate taxpayers who are late in submitting SPT is IDR 1,000,000 and for personal taxpayers is IDR 100,000. If the taxpayer has paid but there is still tax payable or income tax underpayment, the tax is subject to an interest sanction of 2% per month. Taxpayers who due to their negligence do not submit the Annual Tax Return or submit it but the contents are incorrect or incomplete, or attach information whose contents are incorrect so that it can cause losses to state revenue, are not subject to criminal sanctions but are subject to administrative sanctions if the negligence is first committed by the taxpayer. In this case, the taxpayer must pay off the underpayment of the amount of tax owed along with administrative sanctions in the form of an increase of 200% of the amount of tax underpaid. The imposition of criminal sanctions is possible to be implemented and is the last resort to improve taxpayer compliance. This is as stated in Article 39 of the KUP Law which states that if the SPT is not submitted or the SPT is submitted by the taxpayer with information whose contents are incorrect or incomplete so as to cause losses to state revenue, it can be subject to criminal sanctions, namely imprisonment for a minimum of 6 months and a maximum of 6 years. Meanwhile, the fine is at least 2 times the amount of tax payable to a maximum of 4 times the amount of tax payable.
KH Contact
This is an explanation of the Annual Income Tax Return, how to report the AnnualIncome Tax Return forcorporate taxpayers, to the documents that must be attached to report the Annual Income Tax Return. For KH Pals who have not reported the Annual Income Tax Return of their business entity, don’t forget and don’t be late to report because there are sanctions waiting if the taxpayer deliberately does not report or exceeds the specified deadline. If you still have questions about the Annual Tax Return or need assistance to report the Annual Tax Return of your business entity, do not hesitate to contact Kontrak Hukum at the following link Tanya KH or through social media Instagram @kontrakhukum. Kontrak Hukum is ready to help and provide the best solution.
