The importance of filing Annual Corporate Tax Returns cannot be ignored in the ever-evolving business world. As an integral part of tax obligations, this filing not only fulfills company responsibilities but also provides long-term benefits.
Also read: What is SPT (Tax Return) in Indonesia?
Regulations for Filing Annual Corporate Tax Returns
The requirements for filing Annual Tax Returns must be carefully followed to ensure a smooth process. For corporate taxpayers who wish to file their taxes online, there are general and specific requirements that must be met. What are these requirements?
General Requirements
Generally, online annual tax return filing involves having a Corporate Tax ID (NPWP). A Corporate Tax ID is a taxpayer identification number issued by the Directorate General of Taxes (DJP) to corporate taxpayers. Additionally, another requirement is to have an EFIN (Electronic Filing Identification Number) and Electronic Certificate (digital certificate) for tax purposes.
Specific Requirements
Besides the general requirements, corporate taxpayers must attach several documents as specific requirements for filing annual tax returns, including:
- Form 1771 (annual tax return form for corporate taxpayers).
- Financial Statements , at minimum proft and loss and balance sheet, depreciation schedules, and proof of installment payments for Income Tax Article 25.
- Other Financial Statements or Supporting Documents (optional).
For more details on the documents that need to be prepared, you can refer to the article in Point B about Detailed Documents for Filing Corporate Taxes Online.
For individual taxpayers who are entrepreneurs, the requirements for online annual tax return filing include:
- Form 1770 (annual tax return form for individuals who have a business or freelance work).
- Withholding Tax Receipt 1721-A1 or 1721-A2.
- Balance Sheet and Income Statement (if using the bookkeeping method).
- Monthly Gross Revenue and Expense Recapitulation (if using the NPPN method).
- Gross Revenue Calculation List (if using the calculation method according to PP 23/2018).
- Income Tax Calculation Sheet for those with separated assets (PH) or Separate Management (MT).
Also read: Indonesia Corporate Tax Rate: Navigating the Business Landscape
Deadline for Filing Annual Corporate Tax Returns
The Annual Income Tax Return for Corporate Taxpayers must be submitted no later than 4 months after the end of the Tax Year. The Tax Year for Corporate Taxpayers is the same as for Individual Taxpayers, which is one calendar year, unless the Taxpayer uses a fiscal year different from the calendar year.
How to File Annual Corporate Tax Returns (SPT Badan)
Filing taxes is now easier with the DJP Online e-Filing system, accessible via personal devices. However, make sure you understand the steps to avoid mistakes. Here is how to file annual tax returns online.
Registering EFIN at the Tax Office
Although annual tax return filing can be done online, the first step is to visit the Tax Office to create and activate EFIN, a mandatory reporting identity used for e-filing on the DJP online system.
Creating CSV Files in the Electronic Tax Return Application
After registering EFIN, you may create your online tax account through the Directorate General of Taxes (DJP) website. This will facilitate the e-Form for both corporate tax returns and individual tax returns.
Preparing the Required Documents
The next step is to prepare the supporting documents that need to be uploaded when doing e-filing. Here is a list of the documents that need to be prepared:
- Completed Form 1771.
- Company financial statements.
- Other supporting documents.
Starting the Online Filing of Annual Tax Returns
After completing the EFIN registration, CSV creation, and document preparation, you can start filing annual tax returns. Here are the steps:
- Go to the DJP online page using your device.
- Log in to your account by entering the username and password you created.
- Find the e-filing menu and click “Create Tax Return”.
- Answer all the questions to determine the type of tax return form to be filled out.
- Fill out the form carefully to avoid data entry errors. Be sure to check the data entered at least three times.
- After filling out the form, you may be asked to enter a verification code. Usually, the DJP online system will send it via email to be entered into the form field.
- Check your email to get the verification code and enter it into the provided field on the form.
- Upload the required documents.
- Once the form is completely filled out and the documents are uploaded, proceed by clicking “Submit Tax Return”.
The process of filing annual corporate tax returns is complete, and you just need to wait for the Electronic Receipt (BPE) which will be sent within less than 24 hours via email.
Also read: Indonesia-Singapore Tax Treaty: Updated Guide
Tips for Simpler Corporate Tax Returns and Reporting
Corporate tax return and reporting in Indonesia can be time-consuming. To make it easier, you can rely on InvestinAsia’s Indonesia Accounting and Tax Services. Our experienced accountants and tax consultants will help you report your tax return and other things like:
- Indonesia Tax Compliance Services
- Indonesia Payroll Services
- Indonesia LKPM Reporting Services
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The success of a company in tax matters is determined not only by regular filing but also by the implementation of effective strategies. By uncovering success secrets, which include a deep understanding of the rules, the application of the right strategies, and discipline in execution, companies can face tax obligations more efficiently. This shows that preparing annual tax returns is not just a routine but an opportunity to optimize finances and ensure sustainable growth.
Article reviewed by:
Tax Consultant of InvestinAsia
