Running a business isn't just about chasing profit; it's also about fulfilling your responsibilities as a taxpayer.
Based on Law No. 6 of 1983, every corporate entity is required to report their taxes by filing the Annual Tax Return (SPT) Form 1771, no later than four months into the new tax year.
Tax reporting for corporate entities varies by business sector, which dictates the specific documents required for the report. However, the general procedure for filing a corporate tax return remains the same across all sectors and can be done online via coretaxdjp.pajak.go.id.
In this article, you'll see:
- Steps to file CIT report in Indonesia
- Documents you need to prepare
- How ERP helps simplify tax reporting
How to File Your Annual CIT Report in Indonesia
Though 4 steps look simple, filing a Corporate Income Tax (CIT) return is much more complex than a personal one. Therefore, it requires extra time and careful attention to avoid any errors during data entry. Here are the steps to report your Annual CIT:
Prepare the supporting documents for your corporate tax return.
Log into the coretax portal using the PIC (Person in Charge) account.
Fill out the main tax return form and the annual Income Tax (PPh) attachments.
Click Pay and Report.
Supporting Documents for Annual CIT Reporting
Before filling out the form, taxpayers are expected to prepare several documents to be entered into the tax return, which is divided into two main parts: the core form and the annual attachments.
These prepared documents are used to answer each prompt within the system. In addition to filling out the form, taxpayers must also attach several documents to substantiate their report.
The supporting documents required for data entry and attachments include
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- Taxpayer identity (name, Tax ID/NPWP, EFIN, address, and tax year).
- Articles of incorporation and business licenses.
- Financial statements (assets, liabilities, equity, income, expenses, sales, and purchases), whether audited by a public accountant or unaudited.
- Audit opinion (must be included if the financial statements are audited).
- Proof of Income Tax (PPh) payments.
- Income subject to final tax and non-taxable income.
- Income tax calculations.
- Deductions for tax payable.
- Underpaid/overpaid income tax.
- Calculation of Article 25 income tax installments for the current year.
- Transaction statements.
- Financial statement reconciliation.
- Shareholder data, dividend distributions, and affiliate transactions.
- List of business locations and gross turnover (for final tax rate users).
- Calculation of fiscal loss compensation.
- Corporate tax rate reduction claims for gross turnover under IDR 50,000,000,000.
- List of fiscal depreciation and amortization.
- Related party transactions and transfer pricing documents.
- Nominative list of expenses, debts, and DER (Debt-to-Equity Ratio) calculations.
- Tax calculation and reinvestment details for Permanent Establishments (BUT/PE).
- Tax facilities (including super tax deductions).
- Utilization of surplus balances for foundations and educational institutions.
- Consolidated financial statements for Permanent Establishments and corporate groups with domestic or overseas subsidiaries.
- Proof of reinvestment types and realization for Permanent Establishments.
- Reports on tax rate reductions on dividends.
- Proof of foreign tax credit withholding for taxpayers crediting foreign taxes on income received from abroad.
- Calculation letters for dividend tax crediting from non-listed foreign entities.
- Electronic receipts for Country-by-Country (CbC) reports.
- Proof of zakat or religious donation payments.
All prepared documents can be entered step-by-step into the forms provided by coretax. Don't forget to clearly indicate your business sector, as some documents may not be applicable or required depending on the industry.
The Easy Way to Collect Data for Annual CIT Reporting
The list of documents above might seem overwhelming. Fortunately, companies no longer need to dig through physical archives just to find data.
With an ERP system like Odoo, data extraction can be done in just a few clicks because business records throughout the year from expenses and income to asset depreciation are recorded automatically.
Odoo features that help simplify CIT Report
XML e-Faktur File Export
Function in Odoo
Automatically extracts sales invoice data into an XML format ready to be uploaded to the DJP’s e-Faktur application.
Role for CIT
Crucial for the tax equalization process. Tax auditors will definitely compare your total sales (Revenue) in the Profit & Loss statement with the total Tax Imposition Base (DPP) for VAT reported monthly. Because the XML file is generated directly from Odoo invoices, the revenue figures in your Corporate Tax Return are guaranteed to sync with your monthly VAT reports.
Instant Profit & Loss (P/L) Report
Function in Odoo
Provides a real-time summary of revenue, cost of goods sold (COGS), and operational expenses.
Role for CIT
The P/L is the heart of the Annual CIT Return. With automated P/L generation, you no longer need to compile 12 months of transaction data from scratch. You get your Commercial Profit figures instantly, allowing your team to focus on Fiscal Corrections (separating deductible and non-deductible expenses) to determine the Fiscal Profit, which dictates the tax payable.
Real-time Balance Sheet
Function in Odoo
Displays the company's assets, liabilities, and equity at a specific point in time.
Role for CIT
The Balance Sheet must be attached to the Annual Tax Return. Having an integrated balance sheet in Odoo ensures that your company's assets and liabilities are perfectly balanced and ready to be transferred directly into the tax forms without the need for manual compilation that is prone to discrepancies.
Automated General Ledger
Function in Odoo
Records every journal entry (debit/credit) for all accounts in detail throughout the fiscal year.
Role for CIT
The General Ledger is the ultimate tracking and audit tool. When preparing your tax return, you can drill down directly into the General Ledger in Odoo. This is incredibly helpful for verifying whether an expense is legally deductible or needs to be adjusted.
Vendor Bills Tracking for Withholding Tax
Function in Odoo
Identifies and tracks which Vendor Bills are subject to Income Tax withholding.
Role for CIT
Helps with two vital things: ensuring your expenses are safely recognized by the DJP to reduce taxable profit, and tracking tax credits that can be used to deduct your total Corporate Income Tax bill at the end of the year.
With Odoo's integrated ecosystem, your administrative tax work is automatically resolved as your daily operations run.
Ready to say goodbye to the hassle of Annual CIT Reporting? Click the button below to try Odoo for yourself, or discuss with our team to find the best solution for your business!
