Corporate Income Tax Return (SPT PPh Badan)

The Annual Corporate Income Tax Return (SPT PPh Badan) is a mandatory financial commitment that Indonesian companies must settle no later than the fourth month following the close of the tax year. Indonesian companies are obligated to file their Corporate Income Tax Return annually.

 

Filing Process

Preparation

Companies must prepare their financial statements based on accounting standards and regulations, including the income statement, balance sheet, and cash flow statement.

Submission

The Corporate Income Tax Return is submitted to the Indonesian tax
authorities by a specified deadline. Late submissions may result in penalties and interest charges.

 

Key Considerations

Accuracy

Filing an accurate Corporate Income Tax Return is crucial to avoid legal issues and penalties. Companies should ensure that all income sources, deductions, and exemptions are correctly reported.

Tax Planning

Strategic tax planning can help companies optimise their tax liabilities. This may involve making use of available tax incentives and deductions.

Corporate Income Tax Rates

The standard corporate income tax rate in Indonesia is 22%. Certain industries and activities may be eligible for reduced tax rates or incentives to promote investment and economic growth.