This is What a Correct, Complete and Clear Tax Return Means

JAKARTA, DDTCNews - The tax system in Indonesia adheres to the self-assessment system. This implies that people who have been registered as taxpayers are given the discretion to calculate, pay and file their tax affairs pursuant to statutory tax assessments.

In the self-assessment system, the Annual Tax Return (SPT) serves as a means to file and account for the calculation of the amount of tax payable.

Tax returns must be filed to the tax authority, this implies that the filing of tax returns also has a legal impact. To avoid unnecessary legal consequences, it is important to note that tax returns must be filled in correctly, completely and clearly.

Any Taxpayer shall be obliged to complete a Tax Return correctly, completely and clearly in Indonesian Language using the Latin alphabet, Arabic numerals and Rupiah currency and sign and file it to the office of the Directorate General of Taxes where the Taxpayer is registered or other places as stipulated by the Director General of Taxes.

The statement is outlined in Article 3 of Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended several times, last amended by Law Number 28 of 2007.

What does correctly, completely and clearly mean? In the elucidation memory of the General Provisions and Tax Procedures Law, tax returns must be filled in correctly, completely and clearly referring to the following:

Correct refers to correct in the calculation, including correct application of statutory tax provisions, in the writing and correct as in actual condition

For example, is the filed income in accordance with the actual condition or not? And is the calculation of tax pyable on filed income is correct or not pursuant to applicable tax provisions?

Complete refers to containing all elements related to taxable objects and other elements that must be filed in the tax return.

The definition of other elements, in this case, includes income not included as a taxable object, income subject to Final Income Tax, assets, liabilities and other information. In addition, tax returns must filed in full as well as all required attachments.

Clear implies that tax returns must be filled out clearly, in that the tax returns must report the origins or sources of taxable objects and other elements that must be filed.

For example, if a Taxpayer files a number of assets in an asset list group, it must describe when the assets are acquired and the acquisition value. Further, if the assets are acquired on credit, the Taxpayer should include a ‘credit’ clause in the information field available on the asset list. Simultaneously, the Taxpayer needs to inform of the debt balance. (Amu)