Pensioners Need Not File Annual Tax Returns, Here Are the Provisions

JAKARTA, DDTCNews - Taxpayers who have entered retirement age remain obliged to file their Annual Tax Returns insofar as their Taxpayer Identification Numbers remain active.

Nonetheless, pensioners may no longer be obliged to file Annual Tax Returns if their Taxpayer Identification Numbers are deactivated. The deactivation of the Taxpayer Identification Numbers or non-effective (NE) Taxpayer Identification Number is valid if at least 2 criteria are fulfiled, namely the income is below the personal tax relief threshold and having no income other than pension funds.

"If after retirement, a person no longer receives income or his/her income is below the personal tax relief, he/she may apply for NE Taxpayer Identification Numbers. If the Taxpayer Identification Numbers are NE, there is no obligation to file Tax Returns,” tweeted the Directorate General of Taxes (DJP) via account @kring_pajak, Thursday (2/2 /2023).

The application for non-effective (NE) Taxpayer Identification Numbers may be submitted via Kring Pajak 1500200 or live chat on the pajak.go.id webpage. The application may also be submitted in writing to the Tax Office where the taxpayer is registered by completing the non-effective taxpayer determination form attached with supporting documents.

The application letter for NE Taxpayer Identification Numbers may be submitted in person or by post/forwarder services. The non-effective taxpayer determination form may be downloaded on the pajak.go.id webpage. On the other hand, the Tax Office contact list can be checked on the pajak.go.id/unit-kerja webpage.

It should be underlined that if a pensioner does not fulfil the above criteria for NE Taxpayer Identification Numbers, the pensioner remains required to file the Annual Tax Return by completing his/her income data.

Income data completed by a pensioner may be obtained from the Taspen application (services.taspen.co.id) or by visiting the Taspen office directly. Later, the Taspen officer will provide the Pension 1721-A2 Form withholding receipt as a basis for completing the Annual Tax Return.

Next, if a pensioner has other sources of income, the income will also be included in the pensioner’s Annual Tax Return. (sap)