A Guidance to Submit a Personal Income Tax Return

A Guidance to Submit a Personal Income Tax Return

PPN - 26 Feb, 2024 13:02 WIB

Jakarta, Ideatax -- The deadline for filing the Annual Personal Income Tax Return for fiscal year 2023 is approaching. Taxpayers are requested to report their Annual Income Tax Return as soon as possible to avoid any obstacles in reporting, which ultimately result in late fees.
Based on the Directorate General of Taxes (DGT) report, as of January 24, 2024, the number of taxpayers who have reported their annual tax return is 1.48 million taxpayers. This number consists of 1.42 million individual taxpayers and 59,000 corporate taxpayers. According to the Director of Counseling, Services, and Public Relations of the DGT, the number of taxpayers who reported their annual tax return in 2024 grew by 38% compared to the same period the previous year (Databoks 2024). Then, how to report the Annual Income Tax Return for Individuals? Through this article, Ideatax will explain the procedures for reporting the OP Annual Income Tax Return through e-filing.


In general, the Annual Income Tax Return for individuals is submitted online through the DJP online channel. Especially with the issuance of the Minister of Administrative Reform and Bureaucratic Reform's circular letter number 41 of 2019, which requires ASN, TNI, and Polri to submit their annual tax returns through e-filing.


In terminology, e-filing is defined as a way of submitting an Annual Tax Return online and in real-time through the Internet on the DGT website or application service provider (ASP). There are three ways to submit an SPT through e-filing: filling out the SPT online, uploading the e-SPT, and e-form. Online filling of the SPT is used for types of SPT 1770SS and SPT 1770S. Meanwhile, e-SPT upload can be used for types of SPT 1770 and 1771. On the other hand, e-forms are used to report SPT 1770S, SPT 1770, and SPT 1771.

 


 

Registration
Three important things need to be prepared by taxpayers before filling out e-filing, namely: NPWP, EFIN, and an online DGT account. EFIN stands for Electronic Filing Identification Number. EFIN contains an identity number issued to taxpayers to conduct electronic transactions. To obtain an EFIN, taxpayers need to come to the registered tax office to apply for an EFIN. The EFIN application needs to be attached to an ID card or passport and an NPWP or registered certificate.

 

After obtaining eFin, taxpayers need to register themselves in the DJP online account. Registration is done by opening the djponline.go.id website. Taxpayers need to fill in the NPWP, eFin, and security code before pressing the submit registration button. After submitting, taxpayers will receive an email containing an activation link. After the DJP online account is activated, taxpayers can log in using the NPWP/NIK and password that has been created.

 

 

Reporting
As explained earlier, there are three methods of filling in the SPT through e-filing: online submission, e-SPT upload, and e-form. On this occasion, we will explain the procedure for filling out the SPT through online submission.
To submit the SPT through online submission, first, the taxpayer must open an online DGT account using the NPWP/NIK along with the password that has been created. After that, the taxpayer presses the report button and the e-filing button. Next, the taxpayer can press the "create tax return button".
 


 

After pressing the “create tax return” button, a dialog box will appear directing taxpayers whether to use the 1770S or 1770SS tax return as follows:
 


If the taxpayer runs an independent business such as a doctor's practice, lawyer, consultant, or others, then the taxpayer must press "yes" in the first question. In addition, if the taxpayer has an asset separation agreement or carries out separate tax obligations, the taxpayer needs to fill in "yes" in the second answer. The taxpayer's answer is important because it will determine the amount of PTKP used by the taxpayer. Furthermore, if the taxpayer's gross income is less than $60 million in a year, then the taxpayer needs to press the yes button on the third question. The question related to gross income determines whether the taxpayer uses Form 1770S or 1770SS.

After the taxpayer fills in all the questions in the dialog box, the next dialog box will appear, asking the taxpayer to fill in the tax year and the status of the tax return as follows:

 

 

In the next section, the taxpayer will be asked to fill out the withholding slip owned by the taxpayer. In this section, taxpayers will be asked to fill in the name of the withholding taxpayer, withholding taxpayer number, withholding slip date, type of tax, and the amount of income tax withheld as follows:

 

 

Next, taxpayers will be asked to fill in the net domestic income in connection with employment. To fill in this column, taxpayers may refer to Form 1721A1 or 1721A2, which show the net income as follows:
 

 

Next, taxpayers will be asked to fill in other domestic income and foreign income, if any. The amount of other domestic income and overseas income will increase the amount of taxable income reported by the taxpayer. The display of the other domestic income and overseas income forms is as follows:

 

 

In the next section, taxpayers will be asked to enter income that is not a tax object and final income. Income that is not a tax object, for example, assistance, donations, grants, inheritance, share of profits of a limited liability company, scholarships, and insurance claims for health, accident, or life. Meanwhile, income subject to final income tax includes income from land and building leases, land and building sales, lottery prizes, honorariums sourced from APBN and APBD, and other income. Income that is not a tax object and income that is final will not increase the amount of net income that is the basis of income tax. Thus, the filling of this column is only informative.


After filling in income that is not a tax object and income subject to final income, Taxpayers will be asked to fill in the amount of assets, debts, and family dependents. In the asset column, taxpayers are asked to fill in the asset code, asset name, year of acquisition, acquisition price, and other information. Meanwhile, in the debt column, taxpayers are asked to fill in the debt code, name of the lender, address of the lender, year of borrowing, and amount. On the other hand, in the dependent column, taxpayers are asked to fill in information about family dependents. The display regarding the columns of assets, debts, and number of dependents can be seen in the following figure:

 

   

In the next step, the taxpayer will be asked to fill out the mandatory zakat, or religious donation, paid by the taxpayer to the government-approved management institution. The amount of zakat or religious donation paid by the taxpayer will be a deduction from the taxpayer's net income. After that, taxpayers will be asked to fill in the tax status of their husband and wife. This amount will determine the amount of taxable income needed to calculate the amount of tax payable. The display regarding the zakat column and the husband and wife's liability status is as follows:

 


 
The last and crucial part of filling out the Annual Income Tax Return through e-filing is the calculation of income tax. In this column, taxpayers are asked to ensure that everything that has been filled out in the previous step is correct. After the taxpayer ensures that the calculation of PPh OP is correct, they can press the agree button and press the next step button. In the last step, taxpayers will be asked to enter the verification code obtained via email.
 
 

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