How to File Your Individual Tax Returns in Indonesia

Fulfilling tax obligations is crucial for individuals in Indonesia, with the deadline for tax returns swiftly approaching on March 31. Individuals can file tax return in indonesia by the end of the month. This blog post will help you understand how you can file tax return in indonesia.

Taxation regulations in Indonesia are governed by Law No. 6 of 1982, which has undergone several amendments, the latest being Law No. 7 of 2021 on the Harmonization of Tax Regulations. According to these laws, taxpayers must accurately and completely fill out their tax forms, ensuring clarity and a duly signed signature.

The annual tax return covers the period from January 1 to December 31.

Who Needs to File Individual Tax Returns?

Individuals required to file their taxes, known as “taxpayers,” must meet both subjective and objective criteria.

Subjective requirements are categorized as follows:

1. Domestic Tax Subject:

   • Individuals residing in Indonesia.
   • Individuals present in Indonesia for more than 183 days within a 12-month period.
   • Individuals in Indonesia during the tax year with intentions to stay.

2. Foreign Tax Subject:

   • Individuals not residing in Indonesia or not exceeding 183 days within a 12-month period but operating a business or activities through a permanent establishment in Indonesia.
   • Individuals earning income from Indonesia through means other than business operations.

What Information is Needed for Individual Tax Returns?

To ensure compliance, individuals meeting the subjective and objective criteria must:

1. Register for a Taxpayer Identification Number (NPWP):

   • Registration can be completed online via the Directorate General of Taxes website or in-person at the nearest tax office.

2. Complete Annual Tax Return Forms:

   • There are three types of forms:
     • 1770 Form: for resident taxpayers with various income sources.
     • 1770-S Form: for individuals with a gross annual income exceeding 60 million rupiah or other domestic income sources.
     • 1770-SS Form: for taxpayers with a gross annual income not exceeding 60 million rupiah.

3. Obtain Withholding Tax Forms:

   • Employees must request withholding tax forms (1721-A1 for private employees and 1721-A2 for civil servants) from their employers, serving as proof of paid income tax.

Read More: Investor KITAS Indonesia: The Complete Guide To Getting One

 How to File Individual Tax Returns?

Taxpayers have several options for filing their returns:

1. Directly to the Tax Office:

   • Individuals can submit their returns at the tax office or designated service centers.

2. Postal or Courier Services:

   • Returns can be sent via post or courier services, ensuring the form is sealed and accompanied by necessary documentation.

3. Authorized Online Tax Services:

   • The Directorate General of Taxes offers e-Filing and e-FORM services through their official website for efficient online filing.

4. Tax Application Service Providers:

   • Approved providers facilitate tax return filing, providing additional support and guidance.

Obtaining an Electronic Filing Identification Number (EFIN):

Every taxpayer who uses the Online Tax Service must have an Electronic Filing Identification Number (EFIN). EFIN is a unique number issued to taxpayers in Indonesia by the Directorate General of Taxes. This number is needed to fill out tax forms, make payments, and complete other transactions related to taxation. Taxpayers must apply for EFIN at the tax office before they can register with the Online Tax Service.

Taxpayers using online services must obtain an EFIN, which is necessary for completing tax-related transactions. EFIN can be obtained directly from the tax office or through online application submission to file tax return in indonesia.

Read more: Company Registration Number In Indonesia: All You Need To Know 2024

How do I obtain an EFIN?

The taxpayer can obtain an EFIN in several ways:

Directly through the tax office

The taxpayer can go to their registered tax office (according to their tax identification) and request an EFIN.  The taxpayer also needs to bring their original and scanned copy of their national ID card and tax card.

Online

This can be done by sending a request through email to the tax office’s email account. The taxpayer needs to send their scanned request EFIN form, national identification card, and tax card. The request EFIN form can be downloaded from the official tax website at http://djponline.pajak.go.id. In addition, the taxpayer also needs to send a selfie holding their identification card and tax card.

Deadline for Filing Individual Tax Returns:

The deadline for filing individual tax returns is three months after the end of the tax year, which falls on March 31. Late filing may incur administrative sanctions in the form of fines.

Fulfilling tax obligations in Indonesia is not just a legal requirement but also contributes to the nation’s economic stability. Ensure compliance with these guidelines to avoid penalties and maintain financial transparency.