Things You Should Know Before Submitting the Annual Tax Return
Jakarta, Ideatax -- The deadline for submitting the Annual Corporate Tax Return for the 2022 tax year is approaching. The busyness of taxpayers and tax authorities is increasing. Moreover, the deadline for submitting the Annual Corporate Tax Return this time coincides with the Eid holiday.
Through a Joint Decree (SKB) of the Ministry of Religious Affairs, Ministry of Manpower, and Ministry of PANRB, the Government has determined the Eid 2023 joint leave starting on April 19 to 25, 2023. This means that the effective time for reporting the Annual Corporate Tax Return is only a few days away.
Therefore, to prevent delays in reporting the Annual Corporate Tax Return, there are several things that taxpayers need to pay attention to. First, taxpayers must ensure that the Annual Corporate Tax Return has been filled correctly, completely, and clearly using the Indonesian language, using Latin letters, Arabic numerals, and rupiah currency. This provision is regulated in Article 3 paragraph (1a) of KUP Law.
Second, the Annual Tax Return shall be signed by the management (owner and/or commissioner), board of directors, and/or person authorized to sign the Annual Tax Return. Furthermore, the general provision stipulates that the Annual Corporate Tax Return may be signed manually, stamp signature and/or electronic or digital signature as regulated in Article 3 paragraph (1b) of Law Number 6 Year 1983.
Third, the Annual Corporate Tax Return must be supplemented with Financial Statements containing information on assets, liabilities, capital, income and expenses as well as sales and purchases so that taxpayers can calculate the amount of tax payable. In addition, the financial statements must be organized in Indonesia using Latin letters, Arabic numerals, Rupiah currency units, and prepared in Indonesian or a foreign language permitted by the Ministry of Finance.
Fourth, taxpayers who organize financial statements and bookkeeping using foreign languages and currencies other than rupiah, must ensure that they have received permission from the Ministry of Finance before submitting the Annual Tax Return. This provision is regulated in Ministry of Finance Regulation Number 196 Year 2007 as amended by Ministry of Finance Regulation Number 198 Year 2019 which states that the use of bookkeeping using English and US Dollar currency by taxpayers must first obtain written permission from the Ministry of Finance, except for taxpayers in the framework of Contract of Work or taxpayers in the framework of Production Sharing Contract.
Fifth, the Annual Corporate Income Tax Return must be completed with NTPN as proof of payment of Income Tax Article 29. In addition, the Annual Corporate Income Tax Return must also be completed with a transcript of the financial statements. This attachment is an inseparable attachment of the Annual Corporate Income Tax Return. Therefore, if the Taxpayer does not submit or neglects to submit the attachments, the Tax Return shall be deemed not submitted.
Sixth, for Taxpayers who have affiliated transactions both domestically and overseas must attach special attachment 3A, special attachment 3A-1 and special attachment 3A-2.
Special appendix 3A is an appendix containing information on transaction description with related parties. While special appendix 3A-1 is an appendix containing information on the report of transactions with related parties, including: overview of related party transactions, analysis of arm's length principles, transfer pricing methodology, and others.
Meanwhile, special appendix 3A-2 is an appendix containing information on transaction reports with parties who are residents of tax heaven countries. According to Investorpedia (2023), tax haven countries are countries that offer low or no tax rates for foreign investors. Tax haven countries can be used illegally by hiding money from native tax authorities.
Seventh, for taxpayers obtaining overseas investment facilities, taxpayers must fill in Appendix 4A, which is an appendix containing information on investment facilities including: BKPM approval number/date, approved investment amount, investment business field, facilities provided, and investment realization.
Eighth, taxpayers with assets or turnover above 50 billion are required to submit annual reports that have been audited by a public accountant. This provision is regulated in Article 68 paragraph (1) of Law No. 40 Year 2007 on Limited Liability Companies which states that the Board of Directors is obliged to submit the Company's financial statements to a public accountant for audit if the Company has total assets and/or total business turnover of at most Rp50.000.000.000,- (fifty billion rupiah).
Ninth, Taxpayers must ensure that the Annual Income Tax Return is submitted before the deadline. Delay in submitting the Annual Income Tax Return may be subject to a late fee of Rp1.000.000,- (one million rupiah). However, if the taxpayer feels that they are not ready to submit the Annual Corporate Income Tax Return, the taxpayer can submit an extension of the Annual Tax Return submission time through the online DGT website.
Those are the things that need to be considered in submitting the Annual Corporate Income Tax Return. Hopefully it helps taxpayers in submitting the annual corporate income tax return.
- Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law Number 7 of 2021 concerning General Provisions and Tax Procedures.
- Law Number 40 of 2007 concerning Limited Liability Companies.
- Ministry of Finance Regulation Number 196/PMK.03/2007 concerning Procedures for Conducting Bookkeeping in a Foreign Language and Currency Unit Other than Rupiah and Obligation to Submit Annual Income Tax Return for Corporate Taxpayers as amended by Ministry of Finance Regulation Number 123/PMK.03/2019
- Regulation of the Director General of Taxes Number PER-39/PJ. / 2009 concerning Annual Income Tax Return for Corporate Taxpayers and its Filling Instructions
Investorpedia. (2023, April 14). Tax Haven: Definition, Examples, Advantages, and Legality. Retrieved from investorpedia: https://www.investopedia.com/terms/t/taxhaven.asp
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