annual tax, monthly tax

Annual Tax and Monthly Tax Reporting in Indonesia: Know The Differences

Administrator

February 18, 2024

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Have you ever felt confused about annual and monthly tax reporting? Which one do you need to report, or are there any differences regarding the requirements? Let’s clear things up!

Understanding the difference between annual and monthly tax reporting is crucial for managing your finances effectively. Both are known as Notification Letters (SPT) in Indonesia, but they differ in frequency and purpose.

Here’s a breakdown to help you navigate:

Annual vs Monthly: Timing Difference

As the name implies, monthly SPT (Periodic SPT) is reported every month, usually by the 20th for income tax and month-end for VAT.

Meanwhile, the annual tax return applies once a year, by March 31st for individuals and April 30th for businesses.

Type of Tax Within The Spectrum

Annual SPT covers personal and corporate income, including assets, debts, and taxes payable for the year.

Monthly SPT primarily focuses on withholding or collecting income tax (PPh) for various categories (articles 21, 22, 23, etc.) as well as VAT and PPnBM.

Forms You Should Apply for

Annual SPT covers reports for individuals and corporate forms like SPT 1770, SPT 1770 S, or SPT 1770 SS. Businesses use SPT 1771.

Monthly SPT forms may vary depending on the specific tax type.

Late Penalties

Missing deadlines that attract fines for monthly and annual tax payments are also different.

For Annual SPT, individuals face an IDR 100,000 fine, while businesses get fined IDR 1,000,000. Late payments incur additional interest charges.

While for monthly SPT, late reporting of VAT SPT attracts an IDR 500,000 fine, and income tax SPT incurs an IDR 100,000 penalty. Late payments also involve interest charges.

Still feeling overwhelmed? Don’t hesitate to reach out!

Come Visit Indonesia can help you navigate the complexities of tax reporting. Our team of experts can provide guidance, answer your questions, and ensure your tax process runs smoothly and complies with regulations.

Remember, managing your finances effectively starts with understanding your tax obligations. By knowing the difference between annual and monthly SPTs, you can stay on top of your finances and avoid any unnecessary penalties.

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