Failure to File Tax Returns Can Result in Fines Up to Rp1 Million

The deadline for reporting annual tax notifications (SPT) is approaching. For individual taxpayers (WP), the latest reporting deadline is March 31, 2024, while for corporate taxpayers it is April 30, 2024.

This obligation is regulated in Law Number 28 of 2007 concerning the Third Amendment to Law Number 6 of 1983 concerning General Provisions and Tax Procedures.

Based on Article 3 Paragraph (3) of Law 28/2007, the deadline for submitting SPT is:

1. For Period Tax Returns, a maximum of 20 (twenty) days after the end of the tax period.
2. For the Income Tax Return of individual taxpayers, a maximum of 3 (three) months after the end of the tax year.
3. For the Income Tax Return of corporate taxpayers, a maximum of 4 (four) months after the end of the tax year.

Article 3 Paragraph (4) of Law 28/2007 states that taxpayers can extend the deadline for submitting Income Tax (PPh) returns for a maximum of 2 (two) months by submitting a written notification or other means to the Director General of Taxes. Regulations regarding this matter are stipulated through the Minister of Finance Regulation.

Furthermore, based on Article 7 of Law 28/2007, if the SPT is not submitted within the timeframe as stipulated in Article 3 Paragraph (3) or the extended deadline for submitting the Tax Notification as stipulated in Article 3 Paragraph (4), administrative sanctions in the form of fines will be imposed:

* Rp500,000.00 (five hundred thousand rupiah) for Value Added Tax (PPN) Period Tax Returns.
* Rp100,000.00 (one hundred thousand rupiah) for other Period Tax Returns.
* Rp1,000,000.00 (one million rupiah) for the Income Tax Return of corporate taxpayers.
* Rp100,000.00 (one hundred thousand rupiah) for the Income Tax Return of individual taxpayers.

There is also the threat of criminal sanctions as stipulated in Article 39 of Law 28/2007. This article states that anyone who intentionally fails to submit an SPT, or submits an SPT and/or information that is incorrect or incomplete, thus causing losses to state revenue, will be subject to criminal sanctions.

"Imprisonment for a minimum of 6 (six) months and a maximum of 6 (six) years, and a fine of at least 2 (two) times the amount of unpaid or underpaid tax and a maximum of 4 (four) times the amount of unpaid or underpaid tax," states the regulation.

SPT tax reporting can be done directly at the nearest Tax Service Office (KPP) or online at www.pajak.go.id.