Are Taxpayers Who Earn Below The PTKP Required To Report The Annual SPT?

Basically, Taxpayers (“TP”) who fulfill the subjective and objective requirements and exercise their tax rights and obligations effectively in accordance with the provisions of laws and regulations in the field of taxation will be categorized as Active Taxpayers (hereinafter referred as “Active TP”). Where this Active WP is required to report the Annual Tax Return (hereinafter referred to as "Annual TR") to the Directorate General of Taxes. However, in reality, there are still many Indonesians who already have a Taxpayer Identification Number (hereinafter referred to as “NPWP”) and are classified as Active TP but do not report their Annual TR because they earn below Non-Taxable Income (hereinafter referred to as “PTKP”). However, is it true that Active TP who earn below PTKP do not need to report the Annual TR?

Based on the direction of the P2 Public Relations of the North Jakarta Regional Office of the DJP which is stated on the www.pajak.go.id website, the Taxpayers who earn income under PTKP do not need to report the Annual TR, but that TP must submit an application to the KPP to be registered as a non-effective taxpayer hereinafter referred to as “NE TP”). However, not everyone can apply as a NE TP, because there are several criteria in determining Active TP to become NE TP.

Therefore, for Active TP, even though their income is below PTKP, if they do not apply as a NE TP, it is better to do an Annual TR, so that the tax reporting data can be received properly by the Directorate General of Taxes. By reporting the Annual TR, it will prevent Active TP that earning under the PTKP from getting a Tax Collection Letter by the Directorate General of Taxes.

Suria Nataadmadja & Associates Law Firm

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