Annual Corporate Tax Return (SPT 1771)

Annual Corporate Tax Return (SPT Tahunan PPh Badan 1771)

Every PT PMA must file an annual corporate income tax return reporting total income, deductions, and tax owed for the fiscal year.

Due date: April 30 (for companies using January-December fiscal year) Cost: Free to file. Preparation by tax consultant: Rp 2-5M typical. Form: SPT Tahunan PPh Badan 1771

Before You Start

You need:

• Financial statements (balance sheet + income statement) for the full fiscal year
• All monthly PPh 25 payment receipts (these count as installments against annual liability)
• Receipts for any withholding (PPh 23, PPh 4(2), PPh 26) you received from other companies
• e-Faktur reconciliation (should match your VAT returns)
• DJP Online account with EFIN activated
• Digital signature/certificate (required for electronic filing)

Step 1 — Calculate Taxable Income

Taxable income = Revenue - Deductible expenses

Revenue includes:

• All operating income (from sales, services)
• Other income (interest, dividends received, foreign exchange gain, etc.)

Deductible expenses include:

• Cost of goods sold
• Salaries (including foreign workers' salaries once PPh 21 is withheld)
• Rent, utilities, office expenses
• Depreciation (per official rates — see PMK 96/2009)
• Interest expense (subject to thin capitalization rules)
• Marketing and advertising
• Director's compensation

Non-deductible expenses:

• Dividends paid to shareholders
• Entertainment and representation
• Personal expenses of owners
• Penalties and fines
• Donations (with exceptions)

Step 2 — Determine Tax Rate

Indonesia corporate income tax rate (as of 2026):

• Standard rate: 22%
• Small enterprise discount: 50% reduction (rate = 11%) for companies with revenue < Rp 50 billion, on the first Rp 4.8B of taxable income
• Public companies with 40%+ free float: 19%
• Qualifying MSME under PP 55/2022: 0.5% of gross revenue (optional, for turnover < Rp 4.8B)

Most PT PMAs will use the 22% standard rate.

Step 3 — Calculate Annual Tax Liability

`` Annual Tax = Taxable Income × 22% ``

Then subtract installments already paid:

`` Tax Due / Refund = Annual Tax - (PPh 25 installments + any withholding credits) ``

• Positive: you owe additional tax by April 30
• Negative: you have a refund/carry-forward credit

Step 4 — Access DJP Online

1. Go to https://djponline.pajak.go.id
2. Log in with your NPWP + password
3. Click Lapor → e-SPT → SPT Tahunan
4. Select 1771 (for Badan Usaha)
5. Choose the relevant tax year

Step 5 — Fill Out Form 1771

Main form (1771 Induk):

• Tahun Pajak: Tax year being reported
• Nama WP: Company name
• NPWP: 15-digit tax ID
• Alamat: Tax address
• KLU: Business classification
• Revenue: Total gross revenue
• HPP: Cost of goods sold
• Biaya Usaha: Operating expenses
• Penghasilan Neto Komersial: Commercial net income
• Penghasilan Neto Fiskal: Fiscal net income (after tax adjustments)
• Pajak Terutang: Tax owed

Attachments required:

• 1771-I: Revenue details by source
• 1771-II: Cost of goods sold breakdown
• 1771-III: Tax credits (PPh 25 installments, withholding received)
• 1771-IV: Balance sheet + income statement
• 1771-V: Additional schedules as needed
• 1771-VI: Adjustments between commercial and fiscal income

Step 6 — Submit Electronically

1. Upload all attachments as PDFs
2. Sign digitally using your DJP certificate
3. Submit
4. Receive BPE (Bukti Penerimaan Elektronik / Electronic Receipt) — save this

Step 7 — Pay Any Tax Due

If you owe additional tax:

1. Generate payment code via DJP Online
2. Pay via bank transfer to state treasury account
3. Upload payment receipt to DJP Online
4. Must be completed by April 30 (or accrues 2%/month late penalty)

Step 8 — Keep Records

Keep for 10 years:

• Signed SPT 1771 + all attachments
• Financial statements
• Supporting invoices and bank statements
• BPE confirmation
• Payment receipts

Common Mistakes

• Missing the deadline: Rp 1,000,000 late filing penalty + 2%/month on unpaid tax
• Under-reporting revenue: Cross-matched with your VAT returns. Discrepancies trigger audits.
• Mis-classifying non-deductible expenses as deductible: Entertainment, personal use, and penalties cannot be deducted. Including them and getting caught in audit results in back-tax + penalty.
• Filing without proper bookkeeping: You need a proper general ledger. Self-filing without accounting software (Zahir, Accurate, Jurnal) is very error-prone.

Do You Need a Tax Consultant?

Yes, if:

• Revenue > Rp 5 billion
• You have multiple income sources
• You did international transactions (transfer pricing applies)
• You have complex depreciation (fixed assets, intangibles)
• First year of operation

No, if:

• Simple single-product/service business
• Revenue < Rp 4.8 billion (you can use PPh Final 0.5% under PP 55/2022)
• No employees other than director
• All income from Indonesian sources

Extension

You can request a 2-month extension (until June 30) by submitting a written request to your KPP at least 2 weeks before April 30. Approval is automatic for most cases.

_Source: UU 36/2008 on Income Tax; UU 7/2021 (HPP); pajak.go.id official guide._