Who is it for?

1. Individuals:

   • If you’re an individual residing in Indonesia and earning income (including wages, dividends, or any other source of income), you are required to file an Annual Tax Report.
   • Individuals with a Tax ID (NPWP) are obliged to report their annual taxes.
   • Expatriates: Foreign nationals living and earning in Indonesia are also required to file annual tax reports, particularly if they stay in Indonesia for more than 183 days within a taxable year.

2. Corporates:

   • Businesses, whether local or foreign-owned, that have a Tax ID (NPWP) and are generating income must file annual tax reports.
   • Corporates must report their taxes in the form of Corporate Annual Tax Reports, which cover taxes for the entire business year.

What Are the Benefits of Annual Tax Reporting?

1. Compliance with Indonesian Law:

   • Filing your Annual Tax Report on time is mandatory by Indonesian law. Non-compliance could result in penalties, surcharges, and even potential legal issues.
   • Avoiding non-filing ensures that you adhere to the country’s tax rules and regulations.

2. Avoid Penalties and Fines:

   • Late submission of the tax report incurs a 2% monthly interest on the payable tax.
   • Administrative Fees: If the filing is late, you may incur fines:
     • Rp. 100,000 for individuals.
     • Rp. 1,000,000 for corporate entities.
   • Timely submission helps businesses and individuals avoid these unnecessary costs.

3. Proper Documentation:

   • Submitting your tax report provides official records of your income and taxes paid, which can be important for future financial and legal purposes, such as visa applications, loans, or any legal transactions.

4. Clear Financial Management:

   • Annual tax reporting helps businesses and individuals track income and tax payments. It provides a comprehensive overview of your financial obligations, ensuring proper budgeting and planning.

5. Professional Assistance:

   • By using tax reporting services, businesses and individuals gain peace of mind that their tax filings are accurate and comply with all relevant tax regulations, making tax matters less stressful.

Key Deadlines for Annual Tax Reporting

1. For Individuals:

   • The deadline for individuals to file their Annual Tax Report is March 31st of each year.

2. For Corporates:

   • The deadline for businesses or corporate tax reports is April 30th of each year.

3. Extension:

   • You can apply for an extension if you need more time. However, the request must be submitted in advance to the Directorate General of Tax.

Consequences of Late Filing

• If you miss the deadline for submitting your Annual Tax Report, the following penalties will apply:
  • 2% interest will be charged for each month your payment is delayed.
  • Administrative fees of Rp. 100,000 for individuals and Rp. 1,000,000 for corporates.
• Exemptions:
  • Individuals who stay in Indonesia for less than 183 days during the taxable year are not required to file the Annual Tax Report.
  • If you are leaving Indonesia permanently, you must notify the Indonesian Tax Authority and cancel your Tax ID (NPWP).

What If You’re Leaving Indonesia?

• Temporary Stay: If you’re leaving Indonesia temporarily, you’re still required to file your Annual Tax Report for that year.
• Permanent Departure: If you’re leaving Indonesia permanently, you must inform the Indonesian Tax Authority and cancel your Tax ID (NPWP). Failing to do so may result in issues related to tax compliance.

Fully Inclusive Tax Packages

To make the process of Annual Tax Reporting easier and stress-free, we offers exclusive tax packages designed for both individuals and corporates. These packages include:

• Monthly and Annual Tax Reporting
• VAT Reporting
• EFIN Registration
• Payroll and Accountancy Services

By choosing a fully-inclusive package, you can ensure that your taxes are managed efficiently, without the hassle of dealing with the complexities of tax regulations on your own.

Annual Tax Reporting is an essential requirement for anyone earning income or running a business in Indonesia. Timely and accurate tax reporting ensures that you comply with Indonesian tax laws, avoid penalties, and maintain good financial standing. If you need assistance, we offers tailored tax services to ensure your business or personal tax filings are handled professionally and on time.

For more information or to get assistance with your Annual Tax Report, feel free to contact us. Our experienced team is here to make tax matters as straightforward as possible!