How to File Your Individual Tax Returns in Indonesia

Taxpayers in Indonesia must file their tax returns by March 31.

Taxation in Indonesia is governed by Law No. 6 of 1982, which has been amended several times, the last update being Law No. 7 of 2021 on the Harmonization of Tax Regulations. Under the law, taxpayers are required to fill out and submit the tax form correctly, completely, clearly, and with a signed signature.

The annual tax return is for the period January 1 to December 31.

Who is required to report their individual tax returns?

People who are required to report their individual taxes are referred to as “taxpayers”. A person can be a taxpayer when they meet the subjective and objective requirements.

The subjective requirements are of two categories:

Domestic tax subject

1. An individual residing in Indonesia, or
2. An individual who is in Indonesia for more than 183 days within a 12-month period; or
3. An individual who is in Indonesia during the tax year and plans to stay in Indonesia.

Foreign tax subject

1. An individual who does not reside in Indonesia or does not reside in Indonesia for more than 183 days within a 12-month period but runs a business or carries out activities through a permanent establishment in Indonesia; or
2. An individual who does not reside in Indonesia or does not reside in Indonesia for more than 183 days within a 12-month period but earns an income from Indonesia from means other than not from running a business.

The objective requirements are essentially any additional economic capacity received or obtained by a taxpayer, both from Indonesia and from elsewhere that can be used for consumption or to increase the taxpayer’s wealth, in whatever name and form. 

What is required to be reported on the individual tax return?

Registering a taxpayer identification number (NPWP)

An individual who meets the subjective and objective requirements of a taxpayer needs to register their tax identification number (NPWP) either online through the website of the Directorate General of Taxes or in person at their nearest tax office.

Annual tax return forms

There are three kinds of annual tax return forms that can be used for reporting individual tax returns:

1770 Form

The 1770 Form is for resident taxpayers that have business income or Income from investments, overseas income, capital gains, or compensation from employment.

1770-S Form

• The 1770-S form is for individual taxpayers who have a gross annual income of 60 million rupiah (US$3,884) or more; 
• Obtain other domestic income such as from interest, royalties, rent, or profits from the sale and/or transfer of other assets or;
• Have income that is subject to final and/or final income tax, such as bank deposits, or ownership of a Bank Indonesia Certificate.

1770-SS Form

The 1770-SS form is for taxpayers that have a gross annual income not exceeding 60 million rupiah (US$3,884).

At the end of the tax year, employees must also ask for the withholding tax forms (1721-A1 for private employees and 1721-A2 for civil servants) from their employers because the withholding tax forms serve as proof that the employee has paid income tax.

Filling out the 1770-SS form is the simplest of the three because it only requires transferring data from the 1721-A1 or 1721-A2 forms. Further, the taxpayer needs to list their assets and liabilities for the tax year.

How do you report your individual tax returns in Indonesia?

There are several ways to report your individual tax return in Indonesia:

Directly to the tax office

The taxpayers can directly report their individual tax return by themselves through:

• Tax office; or
• Other services besides the tax office (e.g., a tax corner, a tax car, or a special place for receiving annual tax returns).

Through postal or expedition services

Reporting of individual tax returns can be done via the postal or courier service.

When the reporting of individual tax returns is done by post, an expedition service, or courier service, the taxpayer submits the annual income tax return form in a sealed envelope that has been attached to the income tax return information sheet. The proof and date of the letter shall be deemed proof as the date of receipt of the annual income tax return form.

Authorized online tax services

The Directorate General of Taxes has provided an easy and efficient way to report individual tax returns through their official tax website.

The electronic annual tax submission service has two mechanisms, namely:

1. e-Filing: Direct filing, namely for the annual individual income tax return forms 1770 S and 1770 SS; and
2. e-FORM: Providing the electronic income tax form, which can be filled out offline and only requires an internet connection (online) when submitting the form.

Through a tax application service provider

In addition to the official tax website, taxpayers can also report their individual tax returns by using a tax service provider.

The tax service providers that have been approved by the Directorate General of Taxes are:

1. PT Achilles Advanced Systems
2. PT Bank Negara Indonesia (Persero) Tbk
3. PT Bank Rakyat Indonesia (Persero) Tbk
4. PT Cipta Piranti Sejahtera
5. PT Fintek Integrasi Digital
6. PT Garda Bina Utama
7. PT Hexa Sarana Intermedia
8. PT Integral Data Prima
9. PT Jurnal Consulting Indonesia
10. PT Mitra Pajakku
11. PT Nebula Surya Corpora
12. PT Prima Wahana Caraka
13. PT Sarana Prima Telematika

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.

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.

When is the deadline for reporting individual tax returns?

The deadline for reporting the individual tax return is three months after the end of the tax year, which is March 31. If the taxpayer reports their individual tax return past the specified time, then the consequences for being late are subject to administrative sanctions in the form of a fine.

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