Why Do You Have To Report Your Annual Rax Return Even Though Your Salary Has Been Deducted From Taxes?

Illustration of tax reporting (Pixabay)

YOGYAKARTA – Every taxpayer (WP), both individual and corporate, is required to report an annual tax return (SPT), even though the company has deducted their salary. The 2022 Annual SPT reporting deadline will end on March 31, 2023, for individual taxpayers. Meanwhile, the deadline for corporate taxpayers is April 30, 2023. So, why report an annual tax return?

Why do you have to report an annual tax return?

Illustration of Annual SPT reporting (Unsplash)

Annual SPT is a letter used to report the calculation and disbursement of taxes, tax objects, and non-tax objects, as well as a list of assets in accordance with tax regulations.

The Annual SPT serves as a means for citizens who already have a Taxpayer Identification Number (NPWP) to report and account for the calculation of the amount of tax for the past year.

Quoted from the Tax website, Wednesday, February 23, 2023, there are a number of reasons why taxpayers must report their Annual SPT, including:

1. The Mandate of the Law

Taxpayers (WP) are required to report taxes because of the mandate of the Law on General Provisions and Tax Administration (UU KUP). In this policy, it is stated that every taxpayer is required to fill out the SPT correctly, completely, and clearly and it is signed and submitted to the office of the Directorate General of Taxes.

2. Implications of Self-Assessment Systems

In the field of taxation, Indonesia adheres to a self-assessment system that gives full trust to taxpayers to register, calculate and calculate, deposit and report independently.

The Annual SPT itself is a means to account for the calculation and deposit of taxes that have been carried out for one tax year.

This calculation includes the calculation of gross income, costs, net income, non-taxable income (PTKP), taxable income, income tax payable, tax credits (both self-paid and deducted by other parties), and underpaid or overpaid income tax.

While tax payments include underpaid PPh deposits and PPh installment payments throughout the tax year.

The Annual SPT is also a means for reporting assets, obligations, or debts, and a list of family members.

Thus, every personal and corporate taxpayer is obliged to report an annual tax return because the annual tax return is a means of accountability for the implementation of rights and fulfillment of their tax obligations to the state.

3. Income Tax Calculation Results for One Tax Year Can Be Different

Another reason that requires taxpayers to report annual tax returns is that the results of calculating income tax (PPh) for one tax year can be different.

When the income tax for a tax year is recalculated at the end of the year, the final result may differ from the amount that was deducted by the company.

The difference can be in the form of underpayment or overpayment. There are two conditions that can cause the difference. First, employees work for more than one company.

The difference in PPh calculation results occurs because of differences in the use of PPh tariff layers between companies and employees. This is because each company in deducting PPh only takes into account the income of that company. While employees must add up all their income.

In addition, there is a double calculation of Non-Taxable Income (PTKP). The reason is, PTKP is taken into account by each company in deducting the employee's PPh. In fact, PTKP employee rights only once.

Second, employees change jobs, but do not provide proof of withholding income tax from the old company to the new company. This condition can cause differences in the calculation of income tax for one tax year. Because new companies don't get information about previous employee earnings.

This is information about why taxpayers must report an annual tax return. To get other interesting information, read on VOI.ID.