Filing Annual Tax Returns for MSMEs with Below IDR500 Million Turnover

The government continues to support MSMEs through various fiscal incentives. One of these incentives is that the fraction of gross business turnover of up to IDR500 million in one tax year is not subject to income tax (PPh).

At least three main requirements must be fulfiled to enjoy this incentive. First, the MSME is an individual taxpayer. Second, the MSME has a business turnover not exceeding IDR4.8 billion in one year. Third, not subject to Income Tax based on the rates under Article 17 paragraph (1) of the Income Tax Law and Article 31E of the Income Tax Law.

With this incentive, individual MSMEs with a turnover of less than IDR 500million in one tax year are not subject to 0.5% final Income Tax. However, this does not nullify the taxpayer’s obligation to file the annual Tax Return.

This time DDTCNews will discuss how to file the Annual Income Tax Return for individual MSMEs with a turnover of less than IDR500 million.

First, log in to the DJP Online webpage by entering your TIN, password and security code. After logging in, select the Lapor menu and click e-Form PDF. Make sure your computer device is installed with Adobe PDF Reader at least version 2.0.

Select Buat SPT and the system will ask if you conduct business or independent personal services, please answer Ya. Next, click the yellow button that says E-Form SPT Tahunan Orang Pribadi Formulir 1770. Afterwards, complete the data on form 1770.

Next, fill in the tax year to be filed, for the Tax Return status, select Normal and the desired token delivery media. Press Kirim Permintaan, thereby, the pdf of e-form 1770 is automatically downloaded and the token will be sent to the selected delivery media.

Then, open the downloaded e-form 1770 file. You will be asked to complete attachment IV first. After completing Attachment IV, press Selanjutnya which is located at the top right of the webpage. Later, you will be directed to complete Attachment III.

In Attachment III Section A Number 16 concerning other income subject to final tax, you will find a box and the words PP23/PP55. Press the box to cross it. The PP23/PP55 button will appear at the top of the webpage. Click the PP23/PP55 button.

You are now on the webpage listing the amount of gross income and final Income Tax payments pursuant to Gov. Reg. 23 of 2018 and/or Gov. Reg. 55 of 2022 per taxable period and from each place of business. You can complete the list by importing data or manually.

If you complete it by importing data, press Import Data and select the CSV file that has been prepared. However, if you complete it manually, click the Tambah button. You can fill in the column of the amount of Income Tax paid with the answer 0.

Upon completion, at the bottom, there is a question Pindahkan ke Lampiran III?, press Ya. Next, press Selanjutnya located at the top right of the webpage. Afterwards, complete the other required data in Attachment III, Attachment II, Attachment I and the main webpage.

Double-check the results of your Tax Return. Afterwards, you can press the Submit button at the top of the master attachment. You will be asked to upload the required documents in pdf format.

Taxpayers previously experiencing an underpayment will be asked to fill in tax remittance data for the underpaid Income Tax.

Afterwards, enter the verification code received via email or mobile number, then press Submit. If successful, you will receive a notification Submit SPT berhasil. You will receive an electronic receipt via email. The process is complete. (rig)