How to Report Personal Income Tax in Indonesia?

How to Report Personal Income Tax in Indonesia?

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If you’re reading this, chances are you’re an expat worker who is a tax resident in Indonesia. And since you’re a tax resident, we assume you already own a tax identification number (NPWP). As a tax resident who owns an NPWP, every year you’re obliged to report your personal income tax.

Fortunately, in the past few years, the Indonesia tax office has introduced online tax return services on filling out their taxes. This allows the process to become easier and more efficient. However, there are certain requirements you need to meet before you can report your personal income tax in Indonesia. Here they are!

It’s called an Annual Tax Report

In Indonesia, you only need to report your personal income tax once a year. That’s why it’s also called the Annual Tax Report. For your personal income tax, there are several things you need to report. These include the income you’re earning, treasure, payable income tax calculation, liabilities, and list of your family members. Don’t try to embellish facts. Make sure to provide valid information.

And here’s the personal income tax rate based on your annual income!

Annual Income Tax Rate
Up to IDR50 million 5%
Above IDR50 million to IDR250 million 15%
Above IDR250 million up to IDR 500 million 25%
Above IDR500 million 30%
Without NPWP 20% HIGHER than those with NPWP

You need an EFIN!

Now that you know how much of your personal income tax that needs to be reported on the Annual Tax Report, it’s time to make an Electronic Filing Identification Number (EFIN). Since the last few years, tax in Indonesia can only be filed online. This is why you need an EFIN to create an account on the online filing website.

First thing first, you must fill out an activation form, which you can download here. Then submit the form to your nearest tax office (KPP). It’s important to note that you need to come to the tax office by yourself. The tax officers usually will not grant any requests for representatives.

 

 

Documents to be submitted

Before going to the tax office to obtain an EFIN, make sure to bring Limited Stay Visa and its copy, a copy of your tax identification number (NPWP), and an active email address. As long as you submit these documents, the tax officer will issue the EFIN code for you.

When reporting yourpersonal income tax, you will also be asked to provide information about your debts and assets. So it will be better if you also prepare other supporting documents such as house and land certificates and mortgage documents.

Go to DJP Online website

Now go to the online filling website. Type in yourNPWP and password you selected earlier. You will be directed to the homes screen, which will show your basic information on the left and several options on the right. Just click the e-filling button to gotothe next screen. If you reported personal income tax last year, the screen will show your previous tax return. Click “Make SPT” to make a new report.

You will find several questions. Answer these and at the final question, you will be asked how you would like to fill out your tax return. Pick the second option, click the button at the bottom, and you will be able to start the 18-steps process to report yourpersonal income tax.

 

Tax-related things do seem complicated no matter what country you work in. But thanks to the process being shifted online, now you can report your personal income tax with more ease in Indonesia. Please share this article to help a friend who might be going through the same process as yours!

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