Have You Paid Attention to Your Tax Compliance?

Have You Paid Attention to Your Tax Compliance?

Companies that have obtained a Taxpayer Identification Number (NPWP) or earned from profits such as wages, dividends, income, and other sources of income, are both required to report taxes to the Indonesian tax authorities. And the deadline for the payment arrives this April!

The Directorate General of Taxes of the Ministry of Finance requested that all companies that are corporate taxpayers immediately report their Annual Tax Returns (SPT) no later than April 30, 2022, at 24.00 WIB. "There is no plan to extend the SPT submission period. The SPT report closes at 24.00 WIB," said the Director of Dissemination, Services and Public Relations of DJP Neilmaldrin Noor.

Yes, the changes on tax laws in Indonesia are indeed quite dynamic, so companies often have to struggle to remain compliant in submitting their tax documents.

Did you know through Circular Letter Number 4 Year 2021 regarding the Implementation of Provisions for Criminal Acts Related to Taxation, the Supreme Court of the Republic of Indonesia imposes heavier sanctions on companies that do not comply with taxes?

The Director General of Taxes requested that every corporate taxpayer to comply with the reporting deadline because there are sanctions if the deadline is exceeded. The sanction that has been prepared is a fine of Rp1 million for every delay in the Corporate Taxpayer.

Indonesia implements a self-assessment system, in which taxpayers are entrusted with calculating, paying, and reporting their own taxes in accordance with applicable laws and regulations. However, the DGT may send a Tax Assessment Letter to a certain taxpayer if it is known that based on the additional information provided by the Tax Auditor, the taxpayer has not yet paid the tax.

Another factor that can cause the DGT to issue a tax assessment letter is for not keeping the books in accordance with the established standards. Depending on the tax liability in question, tax payments and returns must be filed online, either on a monthly or annual basis. Direct payments, third party withholding, or a combination of both may be used to meet a company's tax obligations.

If the total amount of prepaid taxes for the year is less than the total amount of corporate income tax payable, the company must cover the difference before finalizing the corporate income tax report.

Failure to submit tax returns, whether intentionally or not, especially the act of falsifying supporting data for tax reports or submitting incorrect tax reports, will have serious consequences for your organization. Thus, make sure you pay close attention to this tax deadline season.

When you feel overwhelmed and want to focus on clearing your company taxes, try to check which administrative aspects in your organization can actually be transferred to a service provider such as KPSG. We provide high quality services by seeking to understand your organization's problems and needs. Contact us for further consultation!

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