INCOME TAX RETURN

Monthly and Annual Income Tax Return

After registering and obtaining the NPWP, a taxpayer has to file the following tax returns:

a. Monthly Article 25 income tax return using tax payment slips (SSP) at the latest 20 days from the end of the month. An individual who is not conducting a business or who is not an independent professional is exempted from filling the monthly returns.

b. Annual individual tax return (Form 1770; Form 1770 S; or Form 1770 SS) at the latest 3 months from the end of a tax year. The form 1770, form 1770 S and form 1770 SS can be obtained from the tax office or from Directorate General of Taxation (DGT) web page: www.pajak.go.id. (Article 3-paragraph (3) Law No. 28 Year 2007).

What the taxpayer should know before completing the tax return:

a. Every taxpayer has to complete the tax return in Bahasa Indonesia using Latin Letters, Arabic numerals, and Rupiah currency, then sign and file it at the tax office where the taxpayer is registered. (Article 3-paragraph (1) and (1) a Law No. 28 Year 2007).

b. A taxpayer has to complete and file a tax return correctly, thoroughly and clearly. The tax return has to be signed. (Article 4-paragraph (1) Law No. 28 Year 2007).

c. Where a tax return is completed and signed by a person other than the taxpayer, a power of attorney must be attached. (Article 4-paragraph (3) Law No. 28 Year 2007).

d. Completion of annual income tax return by taxpayers who have to maintain bookkeeping records must be accompanied by financial statements in the form of balance sheet and income statement as well as other information required to calculate the amount of taxable income.

(Article 4-paragraph (4) Law No. 28 Year 2007).

e. For filing of annual income tax return, a taxpayer has to attach a statement of assets and liabilities.

f. The filing of a tax return may be done by registered mail through the Post Office or by such other means as regulated by the decree of the Director General of Taxation. (Article 6-paragraph (2) Law No. 28 Year 2007).