The DGT recently released a tutorial on reporting Corporate Income Tax Returns (CITR) through the coretax system. As we know, there have been changes in the reporting of CITR before and after the coretax system era. Before the coretax era, CITR reporting was done through the DGT online system by downloading an e-form pdf and then obtaining a verification code to submit the corporate income tax return report to the DGT, where the verification code was sent via email to the company registered with the DGT. After the coretax era was implemented, there were certainly differences in CITR reporting.
What documents are add need to be prepared for reporting CITR in the era of coretax?
The documents prepared for reporting CITR are the same as those prepared before the coretax era. The documents that must be prepared for reporting CITR are (a) Balance Sheet, (b) Income Statement, (c) Proof of income tax withholding or collection, (d) other documents. Once these documents have been prepared, the next step is to log in to the coretax account through the PIC account or the representative appointed by the company, then impersonate the corporate coretax account.
How do you fill out the CITR in coretax system?
After logging into your corporate coretax account, select the tax return (SPT) menu, then create a draft SPT, select the Corporate SPT menu, and click continue. Then select the tax period and SPT model, then click edit corporate tax return. Unlike previous corporate income tax returns, which started from the back of the attachment, CITR in the coretax era start from the main section first. During the filling stage, taxpayers are first asked to choose an accounting method (accrual or cash basis) and then select the financial statement business sector according to each taxpayer’s circumstances. Next, complete attachment L1.C and answer the questions on the main tax return form by clicking according to the company’s circumstances. After answering the questions, taxpayers are asked to upload attachments in the form of financial reports and other required documents. After that, in section C, taxpayers must check the statement and fill in the position of the person signing the notification letter, then click save.
Next, you will be directed to attachment L1.C, which is a reconciliation of financial statements and inputting previously prepared financial statements, as this section contains income statements and financial position statements (balance sheets). After inputting the financial statement data and clicking save draft, you will be redirected to L2, which is the list of entity ownership. Next, proceed to L3, which contains income from abroad and income tax deducted/collected by other parties. Next, proceed to L4, which contains two sections, namely the section on income subject to final tax and the section on the list of income that is not subject to tax. Next, proceed to L8, which contains facilities for reducing the income tax rate under article 31 E paragraph 1. Next, proceed to L6, which contains income tax installments for the current tax year. Next is L9, which contains fiscal depreciation and amortization. Next is L11.B, which contains loan costs that can be charged for income tax calculation purposes. Next, ensure that all data entered is correct, then proceed to pay and report the annual corporate income tax return. The system will then provide a notification for payment, whether using the deposit system or printing the billing ID, followed by signing and entering the passphrase, then confirming the signature. The annual corporate tax return is automatically reported if the taxpayer has paid the billing id.
By Olina Rizki Arizal – Partner
TBrights is a tax consultant in Indonesia that currently serves as an Integrated Business Service in Indonesia, providing comprehensive taxation and business services.
