The most important aspect that taxpayers must understand is the deadline for the payment and reporting of taxes, especially for income tax and value added tax. Delays in fulfilling this obligation can result in the imposition of adverse administrative sanctions. Therefore, taxpayers are expected to understand the latest regulations related to tax deposit and reporting deadlines. In accordance to the latest regulation, namely the Minister of Finance Regulation Number 81 of 2024 on January 1, 2025, the regulation explains the deposit limits and reporting limits for the income tax and value added tax.
Based on article 94 paragraph 2 of the Minister of Finance Regulation Number 81 of 2024, the time to deposit the income tax (income tax 4(2), 15, 21, 22, 23, 25, and 26) for withholding/collection tax objects and self-remitted taxes is uniform. The deposit date for withholding/collection tax objects changed to the 15th of the following month after the tax period ends, replacing the previous provision which was generally the 10th of the following month. For the value added tax and value added tax / value added tax luxury good on imports, there is no change. The value added tax deposit time remains at the end of the following month after the tax period ends, and the deposit of Income Tax Article 22 and VAT / VATLG on imports collected by the Directorate General of Customs and Excise is made 1 day of cutting / collecting taxes.
The deadline according to Article 3 paragraph 3a of the Law on General Provisions and Tax Prosedures (KUP) number 28 of 2007 for reporting Periodic Income Tax Return (such as Income Tax 21, 22, 23, 25, 26, 4(2), and 15) is the 20th of the following month after the tax period ends. For VAT Periodic Tax Return, reporting is done maximum at the end of the following month after the tax period ends. The reporting deadline for Income Tax Article 22 and VAT / VATLG on imports collected by the Directorate General of Customs and Excise is on the last working day of the following week. Meanwhile, the Personal Income Tax Return must be reported no later than three months after the end of the tax year (March 31), while for Corporate Taxpayers no later than four months after the end of the tax year (April 30). Especially for the Annual Income Tax Return for corporate taxpayers, the reporting time can be extended for a maximum of two months with applicable terms and conditions.
Delay in tax payment or reporting will be subject to administrative sanctions in the form of fines and/or interest in accordance with the KUP Law and its implementing regulations. For example, the fine for late reporting of Periodic VAT Return is Rp500,000 per tax period, while for Annual Income Tax Return for Individuals is Rp100,000 and for Corporate Taxpayers is Rp1,000,000 (Article 7 Paragraph 1 of The Law number 28 o f 2007). In addition, late tax payments may also be subject to interest at the applicable rate.
Conclusion
Deposit the income tax article 4(2), 15, 21, 22, 23, 25 and 26 –> 15th of the following month,
Reporting the income tax article 4(2), 15, 21, 22, 23, and 26 –> 20th of the following month,
Deposit and reporting value added tax –> the end of the following month.
By Olina Rizki Arizal – Partner TBrights
TBrights is a tax consultant in Indonesia that is currently an Integrated Business Service in Indonesia that can provide comprehensive tax and business services.
Reference:
- The Minister of Finance Regulation Number 81 of 2024
- The Law on General Provisions and Tax Procedures Number 28 of 2007
