A tax return is a formal declaration submitted to a government tax authority, detailing a taxpayer’s income, deductions, tax paid and tax owed during a given period. Universally, this document serves to provide transparency, enable assessment and ensure that taxes are paid in accordance with law.
In Indonesia, a corporate income tax return (Surat Pemberitahuan Tahunan Badan or SPT Badan) serves a similar purpose. It’s a yearly report submitted to the Directorate General of Taxes (DGT/DJP) that details your company’s income, expenses, and tax payments for the fiscal year. It verifies whether your organisation has paid the correct amount of corporate income tax (PPh Badan) — currently set at 22% for 2025, in line with Indonesia’s fiscal consolidation efforts.
Filing accurately and on time not only ensures compliance but also builds a credible tax record — vital for foreign investors, shareholders, and banks assessing your company’s integrity.
Income Tax Return Filing: Why You Should File a Tax Return in Indonesia
Under Law No. 7 of 2021 and related regulations, every registered business entity, from PT PMA (foreign-owned companies) to PT PMDN (local companies), must file an annual income tax return. Filing your return means more than avoiding penalties; it demonstrates operational legitimacy and fiscal responsibility.
Timely tax reporting also protects your business from audit complications and ensures continued access to essential corporate services such as licensing renewals, financing, and immigration sponsorship. For foreign investors, a clean tax track record is essential for dividend repatriation and future expansion.
Types and Formats of Tax Return in Indonesia
Corporate taxpayers in Indonesia typically deal with two major categories of tax returns:
- Annual Corporate Income Tax Return (SPT Tahunan Badan) — submitted once a year, summarising total revenue, deductible expenses, and tax liabilities.
- Monthly Tax Returns (SPT Masa) — covering Value-Added Tax (VAT), employee income tax (PPh 21), and withholding taxes (PPh 23, PPh 26, etc.), filed each month.
The annual return consolidates all these monthly reports into a final, reconciled statement for the fiscal year.
Filing is now fully electronic through the DJP Online and e-SPT/e-Filing systems, which require a valid electronic certificate (Sertifikat Elektronik) issued by the DGT.
Also read: Guide to Monthly and Annual Income Tax in Indonesia
Tax Reporting Schedule
Tax compliance in Indonesia runs on two cycles: monthly and annual.
Monthly Tax Reporting includes:
- Withholding Taxes (PPh 21, 23, 26): on employee income, vendor payments, and foreign transactions.
- Value Added Tax (VAT): reporting for taxable business activities.
- Installment Corporate Income Tax (PPh 25): monthly advance payments toward annual income tax.
- These are due by the 20th of the following month (payment) and the 20th–30th (reporting), depending on the tax type.
Meanwhile, Annual Tax Reporting consolidates the year’s performance into one comprehensive filing — the Corporate Annual Income Tax Return (PPh 29) — and must be submitted by the end of the fourth month after the fiscal year ends, typically 30 April for companies operating on a January–December calendar.
Steps to Submit an Annual Income Tax in Indonesia
Prepare Financial Statements
Compile audited or management-approved financial statements for the fiscal year, including income, expenses, assets, liabilities, and equity.
Calculate Taxable Income
Adjust accounting profit to fiscal profit according to Indonesian tax regulations — adding back non-deductible expenses and subtracting allowable deductions.
Compute Income Tax Liability (PPh 29)
Apply the prevailing Corporate Income Tax (CIT) rate of 22% to the fiscal profit, offset by any prepaid taxes (PPh 25) and tax credits.
Complete and File Form 1771
Fill out the SPT Tahunan PPh Badan electronically through the DJP Online system (https://djponline.pajak.go.id) using your corporate e-FIN and login credentials.
Attach Supporting Documents
Upload scanned or electronic copies of audited financial statements, tax payment slips, withholding tax certificates, and other required attachments.
Submit and Obtain Acknowledgement
Once the filing is complete, the system will generate an electronic receipt (Bukti Penerimaan Elektronik – BPE), confirming that the return has been officially submitted.
Monthly Tax Return Filing
While the annual return serves as a year-end summary, monthly filings ensure continuous compliance throughout the year.
Businesses are required to:
- Deduct and remit employee income taxes (PPh 21) and third-party taxes (PPh 23, 26).
- Report VAT (Pajak Pertambahan Nilai) for all taxable goods and services.
- Pay monthly instalments of corporate income tax (PPh 25) as prepayments toward the year-end total.
These filings must be done electronically through DJP Online, using e-Bupot and e-Faktur systems. Timely and accurate submissions help avoid penalties and maintain credibility during potential audits.
Common Questions
Do expats in Indonesia have personal tax obligations?
Every individual who earns income in Indonesia is required to pay taxes and report income through an individual income tax return. This includes both residents and certain non-residents who derive income from Indonesian sources. LMI Consultancy assists clients in preparing and submitting their personal tax reports accurately and in line with Indonesian tax law.
When does the tax year apply in Indonesia?
Indonesia’s tax year follows the calendar year — from 1 January to 31 December. Companies and individuals have a specific time to file their annual tax returns in the following year. LMI Consultancy ensures that all submissions are made on schedule to prevent administrative penalties or non-compliance issues.
What is the due date for filing tax returns?
The Direktorat Jenderal Pajak (Directorate General of Taxes) sets the official due date for filing annual tax returns. For corporate taxpayers, this is generally four months after the end of the fiscal year, while individual taxpayers must file by 31 March of the following year. Our team monitors updates from the tax authority to make sure our clients remain fully compliant.
Do expats have to file taxes in Indonesia?
Yes. Expat professionals who spend more than 183 days in Indonesia within a 12-month period are considered tax residents and must file your tax return locally — even if they also report to their federal tax authorities in their home country. LMI Consultancy provides tailored assistance to help expatriates navigate dual-reporting obligations smoothly and lawfully.
Can I get a tax refund in Indonesia?
Yes. A refund may be available if you have overpaid taxes or if tax credits exceed your final liability for the year. The refund process is handled through the Directorate General of Taxes after submission and verification of your annual tax return. LMI Consultancy helps ensure your refund claim is properly documented, maximising your chances of successful approval.
How LMI Consultancy Can Help?
LMI Consultancy provides comprehensive, end-to-end tax support designed to keep you compliant, stress-free, and confident every step of the way.
Our team assists both individuals and corporations in preparing, reviewing, and filing their Annual Income Tax Return (SPT Tahunan) according to the latest Indonesian tax regulations. From tax calculation and document preparation to cross-checking financial records and liaising with the Directorate General of Taxes (DGT), we ensure your reporting is seamless and fully compliant.
Stay compliant with the Tax Reporting Obligation in Indonesia with LMI Consultancy. Click here to learn more.
