Corporate Annual Tax Return – SPT

The company’s annual tax return (SPT) contains confirmation of the payment of the income tax (PPh) levied on the company’s profits, which must be included in the process of filing the annual corporate tax declaration.

The obligation to file annual corporate tax returns is mandated by Law (UU) No. 7 of 2021, “On Harmonization of Tax Legislation,” and Resolution of the Director General of Taxes No. PER-30/PJ/2017.

All companies, regardless of whether they operated during the reporting period or have founders and directors located outside Indonesia, must submit an annual tax return.

There are exceptions* to submitting tax returns, including:

Companies with Official Status of Inefficiency
Specific Industry Exemptions
Small or Micro Enterprises
Non-Profit Organizations
Special Economic Zones or Free Trade Zones

*It’s important to note that the specific exceptions or exemptions from tax reporting obligations may vary depending on the nature of the entity, its activities, and the relevant laws and regulations in Indonesia. Therefore, it’s advisable to consult with legal professionals (@legalindonesia +62 817 967 77 71) for specific guidance and advice tailored to your situation.

The deadline for submitting the tax return is no later than four months after the end of the tax year, which means the deadline falls on April 30th.

You can prepare and file your annual tax return through the website of the General Directorate of Taxes: https://djponline.pajak.go.id/

To complete the company’s annual tax statement, you will need:

The company’s tax number (NPWP)
Company’s Electronic Filing Identification Number (EFIN)
The company’s annual financial report
Monthly company tax returns from January to December
Electronic form SPT 1771 (to be completed online)

Note that Article 7 of Law No. 28 of 2007 imposes a fine of 1 million IDR on corporate taxpayers failing to submit an annual SPT.

It’s crucial to approach financial tax reporting with due care. Article 39 of the same law stipulates imprisonment of company officials for 6 months to 6 years, plus a fine ranging from twice to four times the unpaid tax amount for failure to pay taxes.

If you require assistance with preparing and filing your annual tax return, please feel free to contact us for a complimentary, no-obligation consultation.