Preparation for Corporate Tax Income Reporting 2022

Mr. Mikail Jaman talked about TGS AU and his material is about CIT return is one of the source information that will become a determining factor to trigger tax audit. Any misstatement in CIT return could lead to tax enquiry and escalate to tax audit. The data must be match to one another. CIT filing administration, this year tax return will use E-Form instead of online filing in E-SPT. Corporate income tax rate (it was going to set on 20% but cancel, remain 22% in 2022). Dividend income exempted from tax with certain requirement. VAT taxable goods and services changes in classification (may need adjustment of the way company report its revenue “breakdown of revenue/sales category” to make it easy in reconcile with VAT), Accounting IFRS 15 and 16 (PSAK 72 Customer contract revenue and 73 lease), and adjustment of deferred tax assets/liabilities. Tax amnesty 2 (“Voluntary disclosure program”) related to CIT is only for corporate taxpayer who have participate in Tax Amnesty program 2016.

Mrs. Desy Dwi Yanti explained that Transfer Pricing Requirement for Corporate Income Tax (“CIT”) Return Reporting Purposes. CIT Incentives include: CIT Incentives, Tax Holiday, Tax Allowance, Super Deduction Facility, Covid-19 Income Tax Facility. In the Article 31E The Income Tax Law stipulates that the price on the purchase or sale of goods, services and intangibles which is influenced by a special relationship shall be the amount that should be paid or received in a transaction between independent parties (the arm’s length value). The Ministry of Finance issued new Tax Holiday regulation on September 18, 2020 (PMK-130/2020). Under PMK-130/2020, pioneer industries (the regulation has listed 18 eligible business sectors) are entitled to corporate income tax reduction, 50% corporate income tax reduction for a minimum new investment of IDR 100 billion up to IDR 500 billion with 5-year concession period; 100% corporate income tax reduction for a concession period up to 20 years depending on the value of the investment made. At the end of the concession period, taxpayer will be provided with further income tax reduction of 25% or 50% for the following two fiscal years depending on the value of the investment made. GR-78/2019 introduces the use of the Online Single Submission (OSS) system to process tax allowance application (which must be made before the start of commercial production).

Mrs. Yuli Aldyanti was explaining step by step how to fill e-SPT form to perform the corporate tax reporting