Annual Corporate Tax Reports Due Last Month, And Failure To Report Will Face Fines

2020 Corporate Income Tax Declaration

1. What is an annual corporate income tax declaration?

Companies in Indonesia must make an annual tax declaration every year. The last date is April
30 of the following year.

2. Who is the subject of corporate income tax declaration?

 All organizations that already have an NPWP (PT Limited Liability Company, CV, Permanent
Establishment, Cooperative, Foundation) must declare it.

3. How to declare?

Filing annual corporate income tax is less complicated than before. Reforms of Indonesia's
government institutions and systems have achieved remarkable results in recent years. In
addition to the tax number that must be obtained by the company, EFIN (electronic tax number)
can be used for annual declarations. Prior to the declaration, companies must prepare a balance
sheet and income statement, as follows:

a. Cash and bank account (must be the same as the bank account at the end of the year)

b. Assets and depreciation (makes financial reporting unreasonable because many companies do
not list assets or do not have depreciation)

c. Inventory/Inventory (Each trading/retail company must have inventory records so that the
value/balance of payables can be seen clearly)

d. Proof of all tax withholdings (If at the time of the transaction we as entrepreneurs make tax
deductions, then we must ask for proof of tax withholding.

4. When is the deadline for reporting the Annual Corporate Income Tax Return?

The deadline for the annual corporate income tax return is April 30, 2021. So please Don't be
late! If the company is late in submitting, it will be fined 1 million rupiah. Specifically for
certifications such as BPOM, SNI, and medical devices, companies that have not made a
declaration are not entitled to submit an application. Tax rates for the annual declaration of
corporate income tax

Opinion:
Every company is required to report its annual tax as a taxpayer who has income in Indonesia, I
agree that it is mandatory for PKP to have an NPWP in order to avoid even bigger fines.