Technical Provisions for Annual Tax Return Extension

Technical Provisions for Annual Tax Return Extension

PPN - 26 Apr, 2024 10:04 WIB

The deadline for submitting the annual corporate income tax return is ending. Directorate General of Taxes (DGT) recorded that as of April 17, 2024, the number of taxpayers who have reported corporate income tax returns was 444,400 (Kontan, 2024). This number grew by 5.15% compared to the same period last year (Liputan 6, 2024).

 

For your information, the Law on General Provisions and Tax Procedures states that the deadline for submitting the Annual Corporate Income Tax Return is four months after the end of the tax year. In other words, if the end of the tax year is December last year, the taxpayer must submit the annual corporate income tax return in April this year. 

 

The KUP Law also stipulates that if a taxpayer submits the annual corporate income tax return late, the taxpayer may be subject to a late fee of one million rupiah. The penal provisions of the KUP Law state that if the taxpayer does not submit the annual income tax return intentionally to cause a loss to state revenue, it may be subject to imprisonment of between six months and six years and a fine of between two and four times the amount of tax payable.

 

To avoid penalties or charge for late submission of annual income tax returns, taxpayers are encouraged to submit their annual income tax returns on time. However, if the annual income tax return is not ready by the submission deadline, taxpayers may apply for a time extension to submit their annual corporate income tax return. 

 

The extension of the annual income tax return submission time is regulated in the Minister of Finance Regulation Number 243, Year 2014, on the annual tax return. Based on the regulation, among others, taxpayers may submit an extension of the annual corporate income tax return no later than two months after the deadline for submitting the annual corporate income tax return. It means that if the taxpayer submits the extension of the 2023 corporate income tax return, then the taxpayer must submit the annual corporate income tax return no later than the end of June 2024.

 

The extension of the annual income tax return submission is done by submitting a notification to the DGT through paper (hardcopy) or electronic forms. Later, the notification letter of the extension of the annual income tax return is referred to as SPT-Y.

 

In the tax provisions, the SPT-Y must be included with the provisional calculation of income tax payable for a year, provisional financial statements, and tax payment letters or other documents equal to tax payment letters in the event of underpayment.

 

Furthermore, SPT-Y must be signed by the taxpayer or the taxpayer's attorney. If the SPT-Y is signed by the taxpayer's attorney, the SPT-Y requires a power of attorney to comply with tax provisions.

 

Related to submission, SPT-Y can be submitted directly, by post with proof of delivery, or by other means determined by the DGT. Therefore, direct proof of submission of SPT-Y, electronic channels, or proof of postal delivery of SPT-Y is equal to the proof of submission of the annual corporate income tax return. 

 

However, if the submitted SPT-Y does not meet the requirements, it is not considered a Notice of Annual Tax Return Extension. The DGT, through the Head of the Tax Office, must notify the taxpayer if the file sent by the taxpayer does not meet the requirements for the extension of the annual tax return. The notification is sent within seven working days after the Annual Tax Return extension file is received. If the DGT does not send the notification letter, the notification of the annual SPT extension shall be deemed accepted. 

 

Taxpayers can still submit a notice of extension of the annual income tax return as long as it is submitted before the deadline for the annual income tax return submission.

 

That concludes the explanation of the procedures for submitting the extension of the annual corporate income tax return. In case you need further assistance, Ideatax is the right solution. 

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