Personal Income Tax Return | Indonesian Tax Guide 2025 (34)
Indonesia
Personal Income Tax
Personal income tax
Tax Return
Tax return
2025-03-04 09:13:25
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This issue's introduction
Tax Return-Personal Income Tax
Tax Administration Agency
All individuals must file a tax return within 3 months after the end of the tax year.
Some tax offices make electronic filing mandatory.
Taxpayers must register with the tax office's electronic filing system to obtain an electronic filing identification code. Incomplete annual income tax returns will be considered unfiled.
Married couples can choose to file separately or jointly.
The tax office can audit a taxpayer and correct the tax return after the taxpayer has paid all taxes for a tax year or within 5 years after the end of the tax year, whichever is later.
If the tax office has not yet conducted a tax audit on an individual, the taxpayer can correct the tax return on his own within 5 years after the end of the tax year. If the correction results in underpayment or overpayment of tax, the corrected return must be filed within 2 years before the end of the assessment period.
Advance and withholding taxes paid during the tax year can be used to offset the final income tax and can also be used to offset taxes paid abroad.
Article 25 of the Income Tax Law provides that certain individual entrepreneurs need to pay taxes in monthly installments within a year based on the tax return of the previous year. The installment tax should be paid within 15 days after the end of each month. The monthly tax payment is 0.75% of the total monthly turnover. Employees must submit tax returns only after paying all taxes assessed for the year (after completing advance tax, withholding tax and foreign tax credits), and submit a copy of the tax receipt (as proof of payment) at the same time, as of March 31 of the following year.
The tax bureau shall make a decision within 10 days after receiving the application. The period for deferring or paying taxes in installments shall not exceed 12 months.
Taxpayers can apply for a reduction in monthly income tax installments after the third month of the tax year. If the tax bureau does not make a decision within 1 month, it is deemed to have approved the application.
Taxpayers can apply in writing for delayed payment of taxes or installments.
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