GENERAL PROVISION WHAT KIND OF TAX DOES THE DIRECTORATE GENERAL OF TAXES ( D G T ) ADMINISTER ?
DGT administers income tax, value addes tax and acquisition duty of land and building
WHO QUALIFIES AS TAXPAYER ?
Taxpayer are individual or corporation who has any tax obligation either income tax (PPh) or Value Added Tax (PPN)
REGISTRATION
How do get a taxpayer identification number (TIN)
The requirement of registration are :
- Certification from Board of Investment (BKPM)
- Notary deed for establishment of the corporation
- Power of attorney if the application is signed by person who is not the authorized person in the company
WHERE DO HAVE TO REGISTER IF I HAVE SERVERAL BRANCHES ?
Taxpayer who has more than one place of business, branches, representative which are located outside Jakarta, should register at each tax office which is responsible for each place of business for the purpose of witholding taxes and value added tax only.
WHEN DO I HAVE TO HAVE A T IN ?
Corporations and individuals that are liable ton be taxed shall have TIN as an identitiy for tax purpose. Single TIN will apply for both Income Tax and Witholding Tax
IS IT POSSIBLE TO REGISTER VIA INTERNET ?
Yes, you may register via internet by application of E-registration
IS THERE ANY ACTION TAKEN BY DGT IF A FIRM WHICH HAS ANY OBLIGATION IN VAT NOT REGISTER ?
The Directorate General of Taxes may issue a Taxpayer Identification Number and / or to confirm a firm as a Taxable Person for VAT Purposes ex-officio in case a Taxpayer for VAT Purpose does not fulfill the obligation to register
HOW LONG DOES THE REGISTRATION PROCESS TAKE ?
The registration process will take about one working day
HOW DO I PAY MY TAX ?
The tax due can be paid byn taking a payment slip (SSP) to a bank
WHEN DO I HAVE TO FILE THE ANNUAL CORPORATE TAX RETURN ?
The Annual Income Tax Return of a Taxpayer who is obliged to maintain bokkeeping must be accompanied by financial statement in the form of balance sheet and income statement as well as other information required to calculate the amount of Taxable Income
WHAT IS A COMPLETE TAX RETURN ?
The return is considered as a complete return if the information listed in the form all fulfilled the attachment is complete and the return is signed by the authorized person
HOW DO I FULFILL MY TAX RETURN ?
Every Taxpayer shall be obliged to complete its Tax Return in Indonesia Languange, Latin alphabet, Arabic numerals, and Rupiah currency, and to sign and submit it to the district tax office where the Taxpayer is registered.
A Taxpayer which has obtained a permission from the Minister of Finance to use foreign language and Non-rupiah currency in its Tax Return, shall fill its Tax Return in the language and the currency other than Rupiah as permitted, as regulated by a decree of the Minister of Finance
HOW DO I SUBMIT THE ANNUAL TAX RETURN ?
The tax return should be submitted at the tax office with which the Taxpayer is registered or sending it by a certified delivery either through post office or courier service. If you submit directly to the tax office, you will get a receipt of your filling. If you use a post office or courier service, the documentation received from that office, may be used as a filing receipt. Failure to comply with the filing deadline will be subjected to an adminstrative sanction of rupiah.
CAN I ASK FOR ANY EXTENSION TO SUBMIT THE ANNUAL TAX RETURN ?
Timing to submit the corporate tax return has a prescribed due date. However, a corporation may request an extension to submit with the following documents / condition :
- Letter of Request
- A Temaporary Tax Return (code Y)
- An Interim Financial Statement, and
- Pay the estimated tax due based on the temporary tax return
The extension is given for a maximum of six months after the end of the period of filing
IS IT POSSIBLE TO MAKE ANY CORRECTION IF AN ERROR(S) IS FOUND IN MY TAX RETURN ?
Taxpayer may amend a submitted Tax Return voluntarily by submitting written statement, within two years from the end of a Taxable Period, provided that the Director General of Taxes has not commenced a tax audit
IS THERE ANY PENALTY FOR THE INCREASE OF TAX PAYABLE DUE TO AN AMENDED TAX RETURN ?
In case a Taxpayer voluntarily amends a submitted Tax Return which results in an increase of the tax payable. The Taxpayer shall be subject to an administrative penalty of 2 % interest per month on the underpaid tax, calculating from the original due date for filling the Tax Return up to the date of payment of the underpaid tax arising from the connection of the Tax Return
WHEN DO I HAVE TO PAY THE TAX ?
The tax due based on an annualn tax return should be paid not later than 25th of month in which to file the tax return, For instance, if the taxable year in January-Decembeeer payment should be done not later than March 25 of the succeeding year.
Due date for payment of monthly corporate income tax installment is 15 days from the end of a month
WHAT IS THE PENALTY FOR LATE PAYMENT ?
If a payment or remitatance of tax payable is made after the due date of the payment or remittance and administrative penalty in the form of 2 % interest monthly, calculated from the due date of payment up to the date of payment where fraction of the month is treated as one full month shall be imposed
WHAT IS THE STATUTE OF LIMITATION FOR TAX MATTERS ?
Within ten years from the date a tax is payable or from the end of Taxable Period the Directorate General of Taxes may issue a Notice of Tax Underpayment Assessment in the following conditions :
- Based on the result of a tax audit or other information, a tax payable is unpaid or underpaid
- A Tax return is not filed within certain period and after being warned in writing, the Tax Return is not filed within the time specified in the Letter of Reprimand
- Based on the result of a tax audit of VAT and Sales Tax on Luxury Goods, it is found that a tax overpayment should not have been carried over or that 0% rate should not have been applied
- The obligation to maintain bookkeeping have not been met so that the amount of tax payable cannot be determined
