Learn the Basics of Annual Tax Return Filing in Indonesia Today and Worry Less About Doing It Wrong
Tax return filing is crucial though it may seem very technical. In truth, it is simple. If you are looking to file in your annual tax return, properly, we at 3E Accounting Indonesia can gladly show you the ropes. Learn the basics of Annual Tax Return Filing in Indonesia today and worry less about doing it wrong.
What is an Annual Tax Return?
It is a form(s) that you will use to report your income or corporate income to the Directorate General of Taxes (DGT), which is the governmental body responsible for tax collection In Indonesia. If you have received a tax ID or income via wages, salaries, dividends, interests, revenues, and other sources of profit; you need to file for annual tax returns.
How to File?
You will first have to register yourself or your company and obtain a tax ID (Nomor Pokok Wajib Pajak – NPWP). You can also have us to register it for you.
Depending on your income and if you are a local, the rates are different, usually between 5% to 30%. That is for personal rates; however, if you own a company, you will be subjected to a 25% standard corporate income tax. On top of that, the forms are also a bit different depending on the type of company you own or the number of incomes you possess. It may seem daunting at first, but should you need assistance, we have the accounting expertise that can help you in determining the right rate.
Net Income Tax Norm (Norma Penghitungan Penghasilan Neto/ NPPN)
If you are interested in understanding how to calculate your tax rates, do invest time in learning the calculation norms used. NPPN is the standard calculation for all tax affairs.
Know Your Forms
Depending on who you are, there are different forms, and you will have to determine which suits best to the nature of your business or best represent you. These forms can be downloaded from the DGT Website, or you can request them at the tax offices (KPPs)
- Form 1770 for sole proprietors.
- Form 1770-S for individuals with multiple incomes
- Form 1770-SS is for full-time employees (Annual gross income not more than IDR 60 million).
- Form 1721-A1 (Given by employers to employees as proof of payment).
Documents You Will Need for Corporate Filing
You will need the following documents to proceed:
- Monthly withholding tax report.
- Annual withholding tax report.
- Monthly income tax report.
- Annual income tax report.
- Investment Plan.
Accounting for Individual and Corporate
If you are filing for yourself, you may calculate it based on the calculation norms stated earlier, or you can have us do it for you. If you are filing for a corporation, it takes both accounting and recording. Which can involve extensive document work? Naturally, possess the expertise to help in this regard as well.
Where to Submit?
All annual tax return filings are to be sent to the tax office (KPPs).
For individuals, it is the 31st of March, every year. For corporate is within four months after the end of the calendar year or taxable year. You can appeal to DGT to have extensions of two months.
The DGT Website houses many conveniences such as E-Filing and E-Billing. You can also gather additional information from the website as well as make inquiries. Filing your annual tax returns can be a tedious process, but fret not. We at 3E Accounting Indonesia stand ready to assist, and our team of experienced professionals can both guide and account for you in this endeavour. Consult us today to learn more on Annual Tax Return Filing in Indonesia!