End of March, Here’s How to Report Annual Personal Tax Return

The annual tax return reporting period in 2024 has begun.

Yes, as you know, individual taxpayers, both those who work as employees and business owners / freelancers must report annual tax returns every year. This tax return contains the total gross income and taxes that have been paid to the state. The deadline for reporting the Annual Tax Return for individual taxpayers is March 31, 2024. Then, what are the provisions and how to report SPT for individual taxpayers? Check out the further explanation in the following article.

What is a tax return?

According to Law No. 28 of 2007 concerning General Provisions and Tax Procedures, SPT is a letter used by taxpayers to report the calculation and payment of taxes, tax objects, and/or non-tax objects, and/or assets and liabilities.

SPT is used to report tax payments that have been made in a certain period, report assets owned outside of fixed income from the main job, and report other income that is included in the category of tax objects and not tax objects.

SPT itself is divided into two, namely Periodic SPT and Annual SPT.

Periodic SPT is a SPT that is reported every month, for example Income Tax 21, Income Tax 22, Income Tax 23, Income Tax 25, Income Tax Article 4 paragraph (2), Income Tax 15, VAT for Collectors, VAT for Retail Merchant Taxable Entrepreneurs who use other values as the Basis for Tax Imposition, and Sales Tax on Luxury Goods (PPnBM).

ALSO READ: Check out the Provisions of the Latest Income Tax Rate (PPh) 2023 Here!

Furthermore, the Annual Tax Return is a tax return that is reported at the end of each tax year. Annual SPT is divided into individual Annual SPT and corporate SPT.

Legal Basis and Provisions for Annual Personal Tax Return Reporting

Individual taxpayers are required to report personal annual tax returns every year. This is stated in Law No. 6 of 1982 which has undergone several amendments and the last one that applies is Law No. 7 of 2021 or the Law on Harmonization of Tax Regulations. In the law, it is written that taxpayers are required to fill and submit tax returns correctly, completely, clearly and sign them. Apart from being an obligation, SPT reporting also has a function to report and account for the calculation of taxes payable to report these things:

Payment or repayment of taxes that have been made by yourself and/or through withholding or collection of other parties in one tax year.
Income that is a tax object and/or not a tax object.
Taxpayer’s assets and liabilities.
Payment from the withholder/collector about the withholding and collection of taxes of individuals or other entities in one tax period in accordance with the applicable tax law.

Well, for the Annual SPT of individuals, there are three forms used, namely:

SPT 1770 used by taxpayers with employee status who do not have certain employment ties;
SPT 1770 S used by taxpayers with employee status who have a maximum of IDR 60 million per year; and
SPT 1770 SS used by taxpayers with employee status who have an income of more than IDR 60 million per year.

The deadline for reporting the individual Annual Tax Return is at the end of the third month after the end of the year or part of the tax year, which this year falls on March 31, 2024.

Requirements to Report Annual Personal Tax Return

There are several documents required to fill out and report the Personal Annual Tax Return, one of which is the Electronic Filing Identification Number (EFIN). However, based on PER-04/PJ/2020, personal taxpayers no longer need an EFIN to report SPT and no longer need a token. However, personal taxpayers are required to attach an electronic certificate and passphrase. In addition, there are other documents that personal taxpayers need to fill out the Annual Personal Tax Return, including:

Form 1721 A1 or A2

Ask the employer for form 1721 A1 or A2. The data from this form should be reported when accessing the OnlinePajak or DJP Online Personal Annual Tax Return e-Filing portal.

Data on other income, liabilities / debts, assets (if any)

If the personal taxpayer has other income outside of regular employment, liabilities/debts, or assets, then prepare these data so that you can fill out the Personal Annual Tax Return easily.

Steps for Reporting Annual Personal Income Tax Return

For tax collection, Indonesia adopts a self-assessment system that gives trust to taxpayers to calculate, pay, and report the amount of tax themselves based on tax laws and regulations. To facilitate reporting, people can utilize online services or e-filing. This is a way of submitting SPT online that can be done from anywhere and anytime as long as it is connected to the internet network. Through e-filing services, taxpayers can save time and money because they do not need to come directly to the tax office. For those of you who want to fill out the form online, here’s how:

Taxpayers enter the official website of the Directorate General of Taxes (DGT) Online, www.pajak.go.id via mobile phone or laptop.
Login by entering your NIK/NPWP number, password and security code.
If you have logged in, then click report and select e-filing and create a tax return.
After that, there will be options to fill out the tax return forms provided, both 1770 and 1770 S. Choose the one that suits your income per year.
Fill in the form based on the tax year and tax return status and click the next step.
Here the taxpayer will be directed to fill in the data step by step consisting of 18 stages. Starting to fill in data related to final income, assets owned until the end of the tax year, to a list of debts owned in the tax year.
If the taxpayer does not have tax debts and others, the tax return status will appear, namely nil, underpayment, or overpayment. Then, fill in the SPT according to the status.
If completed, click the agree button and a verification code will be sent to the registered email address or phone number.
Enter the verification code sent and click the submit tax return button.
Then, taxpayers will get an electronic receipt of the Annual Tax Return sent to email.

No Annual Tax Return Report, Here are the Sanctions!

Because it is an obligation, taxpayers who are late or do not report the Annual Personal Tax Return will get sanctions in the form of fines to criminal sanctions. Based on the law, the amount of fines imposed for taxpayers who are late in reporting the Annual Personal Tax Return is IDR 100,000. However, the fine for being late or not reporting this Annual Tax Return will not be imposed on:

Individual taxpayers who have passed away.
Individual taxpayers who are no longer engaged in business activities or independent work.
Personal taxpayers who are foreign nationals and no longer reside in Indonesia.
Other taxpayers specified by the applicable Minister of Finance Regulation.

In addition, the fine also does not apply if the taxpayer:

Exposed to mass unrest.
Affected by fire.
Being hit by a bomb blast or terrorist attack.
Experiencing tribal wars.
Experiencing a failure of the state revenue or tax administration computer system.

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Every taxpayer including individuals is obliged to report the Annual Tax Return correctly, completely, and clearly. If not implemented, it will be subject to sanctions. Not only that, taxpayers are also able to ward off forms of fraud from a number of individuals. For example, tax deductions that are not in accordance with tax provisions and regulations.

So, immediately report the Annual SPT of Sobat KH before March 31, 2024! To make it easier, you can also leave it to Kontrak Hukum. In order to bring convenience in taking care of taxation, Kontrak Hukum presents the first subscription service in Indonesia Digital Legal Assistant (DiLA). Subscribing to DiBA is like having a complete team because we can provide tax reporting services, to finance and other legalities. It is guaranteed to be easy, safe, and affordable because it will be handled directly by experienced professionals. For more information, visit our KH Services – DiLA page. If you have any other questions, you can also consult for free via Ask KH or send a direct message (DM) to Instagram @kontrakhukum. With KH, #semuajadiberes!