Entering 2022, Taxpayers Need to Know These 5 Things

Tax revenue in 2021 has successfully exceeded the target set in the 2021 State Revenue and Expenditure Budget (APBN). This 2021 tax revenue achievement was recovered by the Directorate General of Taxes (DGT) after 13 years.

Based on DGT data as of December 26, 2021, the net tax revenue amounted to Rp1,231.87 trillion. This amount exceeded the target mandated in the APBN for Fiscal Year 2021 of IDR 1,229.6 trillion or equal to 100.19% of the APBN target.

Minister of Finance Sri Mulyani Indrawati said that the performance of tax revenue achievement which continues to show improvement efforts must be maintained in its momentum so that it can continue towards the 2022 State Budget. Especially in 2022, the Law on the Harmonization of Tax Regulations (UU HPP) has already started to apply.

There are also several things that must be known and done by taxpayers, ranging from formal compliance such as Periodic Tax Return (SPT) and Annual SPT to material compliance. The five important things that must be known and done by taxpayers when entering 2022 are as follows.

1. Voluntary Disclosure Program (PPS)

The HPP Law contains a Voluntary Disclosure Program (PPS). PPS is an opportunity for taxpayers to report/disclose tax obligations that have not been fulfilled voluntarily through the payment of income tax based on the disclosure of assets.

PPS aims to improve taxpayer voluntary compliance based on the principles of simplicity, legal certainty, and expediency. Taxpayers can report/disclose tax obligations through PPS starting January 1, 2022. PPS will be implemented until June 30, 2022.

This program is divided into two conditions. The first condition, when there are tax amnesty participants who have not declared all assets at the time of tax amnesty. The second condition is that there are still individual taxpayers who have not disclosed all of their income in the 2016 to 2016 Annual Tax Returns. 2020.

Disclosure is carried out electronically through the tax.go.id/pps page by submitting a Notice of Asset Disclosure (SPPH). Additional completeness for policy II participants is a statement withdrawing the application for legal remedies that are being carried out in the event that the taxpayer is submitting the application and a decision or decision has not been issued.

If there are errors in filling out or correcting, PPS participants are allowed to submit the second, third, and so on until the data is correct as desired. For taxpayers who have submitted SPPH, but change their mind and do not want to participate in PPS, they can revoke their participation by filling in SPPH with a value of 0. Taxpayers who have withdrawn their participation in PPS can no longer submit SPPH.

2. Changes in Tax Rates

The rate of Corporate Income Tax (PPh) is set to 22% which will be effective starting from the fiscal year 2022. Meanwhile, individual taxpayers with a certain gross turnover are given an exemption from taxation on gross turnover of up to Rp. 500,000,000.00.

In addition, the VAT rate will increase to 11% starting April 1, 2022. Then the VAT rate will increase to 12% which will be implemented no later than January 1, 2025.

3. Submitting the Annual Tax Return at the Beginning of the Year

It is possible that there are still taxpayers who think that the reporting time for the Annual SPT is only in March and April. Even though March 31 and April 30 are only the deadline for reporting the Annual Income Tax Return, it does not mean that reporting is carried out in those months only.

Taxpayers can report their Annual SPT before March and April. The deadline for reporting for the Annual Personal Income Tax Return is March 31 and for the Annual Corporate Income Tax Return it is April 30. This causes taxpayers to queue at the tax office in March and April. Annual SPT reporting can also be done online via e-Filing, so taxpayers do not have to come and queue at the tax office.

Some of the documents that need to be prepared by taxpayers in reporting the Annual Income Tax Return are as follows:

a. Proof of withholding Income Tax Article 21 (Form 1721-A2 for civil servants/TNI/POLRI and Form 1721-A1 for permanent private employees). Taxpayers can obtain proof of withholding Income Tax Article 21 from the treasurer or employer.

b. Proof of withholding/collecting income tax other than Article 21 income tax (if any).

c. Financial Statements and their attachments (if any) for corporate and individual taxpayers who maintain bookkeeping.

d. List of assets, list of debts, and list of dependents.

e. If the status of the taxpayer’s Annual SPT is underpaid, then the taxpayer is obliged to pay the shortfall first.

4. Submitting Periodic SPT

In addition to the Annual SPT, the Periodic SPT also has a deadline for submitting its reports. For example, the SPT Period PPh Article 21/26 has a deadline for reporting no later than 20 days after the end of the tax year, so the deadline for reporting the SPT Period PPh Article 21 for the December tax period is January 20. If the reporting limit falls on a holiday, then the SPT reporting can be advanced to the next working day.

5. Pay off Taxes

Taxpayers who have received a letter from the tax office containing a lack of tax payments, sanctions, fines, or tax debts, must immediately pay off their tax debts or can apply for installments for payment of tax debts. Taxpayers can contact the tax office if they want to know and confirm whether the taxpayer has any remaining tax debts.

Those are some important things that taxpayers need to know and do when entering the new year 2022. Director General of Taxes, Suryo Utomo, revealed that there are many factors that have contributed to the success of achieving tax revenue this year, one of the main factors is the support and participation of all taxpayers who have complied and complied with paying taxes.

Tax revenue is one of the current national economic recovery systems and can be used for the maximum welfare of the Indonesian people. Hopefully the performance of this 2021 tax revenue achievement can be maintained and continue to support the 2022 State Budget and the following years.