Know the Monthly Tax Obligations that are Often Ignored by Taxpayers

The types of monthly taxes consist of Income Tax (PPh) and Value Added Tax (VAT). Where the monthly income tax liability is determined by transactions made by the taxpayer, while the monthly VAT tax is determined by the taxpayer’s turnover in one year.

The types of monthly taxes are:

  • Income Tax Article 21

Income Tax Article 21 is a tax imposed on income received by an employee who works for a company. So, when a corporate taxpayer employs employees with wages exceeding the PTKP, the corporate taxpayer has the obligation to collect, deposit, and report the Article 21 SPT PPh.

  • Income Tax Article 22

Article 22 Income Tax is a tax imposed on income received from transactions regulated in Article 22 of the Income Tax Law. Among them: are imports, transactions with government treasurers.

  • Income Tax Article 23

Income Tax Article 23 is a tax imposed on income received by an entity. The income can be in the form of: interest, royalties, gifts, dividends, rent, and services.

  • Income Tax Article 24

Article 24 income tax is something that is paid abroad on income earned from abroad. The tax that has been paid abroad can be credited in the Annual Income Tax Return.

  • Income Tax Article 25

Income Tax Article 25 is a tax paid by individual or corporate taxpayers at each tax period to reduce the amount of annual tax that must be paid.

  • Income Tax Article 26

Income Tax Article 26 is a tax imposed on income received by foreign tax subjects who work for a company or earn income from an entity in the form of sales of assets, interest, royalties, gifts, dividends, rent, and services.

  • PPh Article 4 paragraph 2

Income Tax Article 4 paragraph 2 is a final tax on transactions carried out as regulated in tax regulations. Among them are land and building leases, transfer of land and buildings, bond interest, lottery prizes, and others.

  • Income Tax Article 15

Income Tax Article 15 is a tax imposed on income received in connection with shipping and aviation.

  • value-added tax

VAT is a tax that must be collected on the delivery of Taxable Goods and/or Taxable Services by entrepreneurs who have been confirmed as Taxable Entrepreneurs (PKP). The taxpayers who must be confirmed as PKP are when the turnover in one year has exceeded IDR 4.8 billion. 

VAT is a tax imposed on transactions of goods or services that are included in the category of VAT objects. As regulated in Paragraph 1 Article 7 of Law Number 42 of 2008, Taxable Goods (BKP) and Taxable Services (JKP) are subject to a flat rate of 10%. However, specifically for exports in the form of Tangible BKP, Intangible BKP and JKP may be subject to a 0% VAT rate. Then in Paragraph 3, it is stated that the VAT rate can be changed to a minimum of 5% and a maximum of 15%. 

In the new provisions stipulated in the HPP Law, the VAT rate will increase gradually. The VAT rate effective from April 2022 is 11% and will increase to 12% effective no later than January 1, 2025. In addition to the VAT rate, there is a special final rate aimed at facilitating the collection of VAT. For example, the tariff is 1%, 2%, or 3% of the business circulation regulated in the PMK. The tariff is only intended for certain goods/services or certain business sectors.

The limits for depositing and reporting SPT are:

Type of SPT Tax deposit deadline
Annual corporate income tax return Before the delivery of SPT
Annual Personal Income Tax Return Before the delivery of SPT
SPT Period PPh 21/26 Every 10th of the following month
SPT Period PPh 23/26 Every 10th of the following month
SPT Time 25 Every 15th of the following month
SPT Period PPh 22-Specific Collector Every 10th of the following month
PPh 22-Pertamina SPT Period Before Delivery Order is paid
Income Tax Return Period 4(2)-Deducted Every 10th of the following month
SPT Period of PPh 4(2)-Self-Paid Every 15th of the following month
15-Deducted PPh Period SPT Every 10th of the following month
15-Self-Paid PPh Period SPT Every 15th of the following month
SPT Period of VAT & PPnBM-Non Treasurer Every 15th of the following month
22-Treasurer PPh Period SPT At the time of delivery of goods
SPT Period of PPh, VAT & PPnBM-Customs 1 day after collection
SPT Period VAT-Treasurer Every 17th of the following month
VAT-PKP Period SPT Before the delivery of SPT
Type of SPT Tax reporting deadline
SPT Period PPh 21/26 Every 20th of the following month
SPT Period PPh 23/26 Every 20th of the following month
SPT Time 25 Every 20th of the following month
SPT Period PPh 22-Specific Collector Every 20th of the following month
Income Tax Return Period 4(2)-Self Paid Every 20th of the following month
15-Self-Paid PPh Period SPT Every 20th of the following month
SPT Period of VAT & PPnBM-Non Treasurer Every end of the following month
22-Treasurer PPh Period SPT 14 days after the tax period ends
SPT Period of PPh, VAT & PPnBM-Customs 7 days after payment
SPT Period VAT-Treasurer 14 days after the tax period ends

Don’t be late in submitting your monthly SPT because you will be subject to a fine for late reporting as regulated in Article 7 of the KUP Law, which is as much as:

  • IDR 100,000 for reporting of PPh Period SPT that exceeds the tax reporting deadline
  • IDR 500,000 for VAT Period SPT reporting that exceeds the tax reporting deadline

Then if you are late in paying, you will be subject to a late payment penalty in the form of monthly interest, referring to the policy of the minister of finance.

We Tax.io provide several features that can help you to more easily manage your company’s tax obligations. For those of you who are already PKP, only with a premium package of IDR 5,000,000 per year, you can use the eFaktur and eBupot Unification features with monthly issuance of up to 500 Invoices & 500 Bupot, Taxomatic PPh Unification up to 50 Bupot per month. Then, free tax management (company tax PPh and monthly VAT) DOES NOT INCLUDE the management of PPh 21 Employees.

But for companies that have PKP and the number of transactions is very large, the premium package of IDR 10,000,000 per year is suitable for you! With this package, you can issue up to 1000 Invoices & 1000 Bupot per month, Taxomatic PPh Unification up to 100 Bupot per month. Then, free tax management (company tax PPh and monthly VAT) INCLUDING the management of PPh 21 employees and annual corporate tax returns. Not only that, but every time you take a premium package on Tax.io you will also get a dedicated account manager for assistance.

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