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Jakarta, Ideatax -- Are you still confused about the difference between annual and monthly tax reporting? To manage finances well, a deep understanding of the differences between the two is crucial. Where these two types of reporting are known as Notification Letters (SPT).
Notification Letters (SPT) themselves are grouped into two based on the reporting period, namely Periodic SPT and Annual SPT. To understand the differences between the two, see the full review below!
Differences in Annual and Monthly Tax Reporting
The basic difference between the two types of reporting is that the Periodic SPT must be reported within a certain time period (monthly). Meanwhile, Annual SPT must be reported every year, precisely at the end of the tax year. Apart from that, there are also other differences between these two tax reports, namely:
1. Type of Tax
Based on the type, the Annual SPT is only for personal and corporate taxpayers. Meanwhile, the Periodic SPT includes PPh articles 21, 22, 23, 25, 26, 15, PPh article 4 paragraph 2, VAT and PPnBM which are reported monthly.
2. Reporting Objectives
Monthly SPT is used to report taxes for withholding or collection of PPh to other parties. Meanwhile, the Annual SPT is used to report personal and corporate income, including assets and debts as well as taxes that need to be paid/taxes payable at the end of the year.
3. SPT form
The SPT forms used in annual and monthly tax reporting are different. For individual annual SPTs, there are three forms, namely SPT 1770, SPT 1770 S, and SPT 1770 SS and for annual corporate SPTs, use the SPT 1771 form. Meanwhile, monthly SPTs have formats that vary according to the type of tax.
4. Reporting Limits
Monthly SPT or what is usually called Periodic SPT must be reported every month on the 20th of the following month for Periodic Income Tax SPT and the end of the following month for Periodic VAT SPT, while annual SPT is only reported once a year. Individual taxpayers must report their SPT no later than March 31, while corporate taxpayers have a deadline of April 30.
5. Late Sanctions
Then there are also sanctions or fines for taxpayers if they are late in reporting their SPT. Here are the conditions:
Annual SPT:
Individual: Fine of IDR 100,000.
Business Entity: Fine IDR 1,000,000.
Late Payment: Interest rate based on PMK which applies per month of unpaid tax.
Monthly SPT:
Late reporting of Periodic VAT SPT: Sanction of IDR 500,000.
Late reporting of Periodic Income Tax Return: Penalty IDR 100,000.
Late Payment: Interest rates based on PMK apply per month of unpaid tax
That's an overview of the differences between monthly and annual tax reporting types. By understanding the difference between annual and monthly tax reporting, you can better manage your tax obligations and personal or business finances.
If you still feel confused and need further guidance and consultation regarding filling out or reporting a Tax Return (SPT), don't hesitate to contact Ideatax. Our team is ready to provide the assistance and information needed so that your tax process runs smoothly and in accordance with applicable regulations.
Contact Ideatax now to get the best service in managing your tax aspects.
