The Indonesian tax system applies the self-assessment principle, which entrusts taxpayers to independently calculate, pay, and report their own tax obligations. This principle also applies to the filing of the Annual Individual Income Tax Return (SPT), as regulated under the General Provisions and Procedures of Taxation Law (UU KUP).
Through this system, taxpayers can manage their tax reporting. However, this freedom comes with the responsibility to ensure that all information submitted to the Directorate General of Taxes (DGT) is accurate and perfectly aligns with actual conditions.
Why Do Withholding Tax Receipts Cause an Underpayment Status?
The introduction of the DGT's Coretax includes a "Posting SPT" feature, which allows tax withholding data to automatically populate into the annual tax return. This feature certainly makes it easier for taxpayers, as they no longer need to enter all withholding receipts manually.
On the other hand, this automation means that all income reported by employers or other withholding parties will be fully reflected in the taxpayer's return.
This is often a concern for those who work for more than one company in a single tax year, receive commissions, or earn additional income. This happens because the annual tax calculation considers all combined income, not just income from a single employer.
Consequently, the amount of tax that has been withheld throughout the year may not necessarily be sufficient to cover the total annual income tax obligation. This difference is then recorded as an underpayment status in the tax return.
So, are taxpayers allowed to delete the withholding tax receipts that cause this underpayment? Technically, withholding tax data can be deleted from the tax return currently being prepared. However, this action does not mean the actual income received is erased from tax administration records.
Withholding tax receipts are issued by the withholding party, such as the employing company, which also reports the tax withholding data to the DGT. This information remains recorded in the tax administration system even if it is no longer displayed in the taxpayer's return.
Furthermore, Article 3 paragraph (1) of the KUP Law requires taxpayers to fill out their tax returns correctly, completely, and clearly. This means all income that must be reported should be stated according to the actual situation, including income that has had tax withheld by other parties.
Deleting a withholding tax receipt simply to change the tax return status from underpaid to nil can actually lead to problems in the future. Data inconsistencies can trigger follow-up actions from the DGT and may result in tax liabilities and administrative sanctions under applicable regulations.
What If the Tax Return Shows an Underpayment?
When facing an underpayment status, taxpayers should re-examine all their income and withholding tax receipts. Ensure there are no recording errors, double calculations, or withholding tax receipts that have not been accounted for as tax credits.
If all the data is accurate but the calculation still shows an underpayment, the taxpayer must pay off the tax underpayment using the billing code provided during the tax return payment and filing process in the DGT’s Coretax.
The convenience of the self-assessment system and the automation features of the DGT’s Coretax must be balanced with the taxpayer's diligence. Deleting a withholding tax receipt might change the numbers visible on the tax return, but it does not erase the responsibility for the income actually received.
Reporting all income correctly, completely, and clearly remains the best way to fulfill tax obligations. If you have any questions about validating your withholding tax receipts or calculating your annual tax obligations in the Coretax system, the Ideatax team is ready to help you ensure safe, risk-free tax compliance.
Also Read:
Why Can Tax Deposit Balances in Coretax Sit Idle?
SP2DK Challenges in Amending Tax Returns in the Coretax Era
Royalties and Affiliate Management Services: Prepare Evidence Before an Audit
Writer: Fiorentina Renata Trixie | Editor: Thomas Rizal
