Individual taxpayers are required to report their income and pay taxes based on Indonesia’s tax regulations. The individual tax report, commonly known as the annual Personal Income Tax (PIT) return or SPT (Surat Pemberitahuan) PPh 21, is a document that taxpayers must submit to the tax authorities to declare their income, deductions, and calculate the tax payable for the tax year.

Individuals who meet certain criteria are obliged to file an individual tax report. The primary criteria include:

Residency Status: Indonesian residents are generally required to report their worldwide income to the tax authorities. An individual is considered a tax resident if they have either lived in Indonesia for 183 days or more in a 12-month period or have the intention to reside in Indonesia.

Income Threshold: Individuals whose annual income exceeds the non-taxable income threshold (which is subject to change each year based on government regulations) are required to file an individual tax report. Non-taxable income includes certain allowances and deductions.

Income Sources: Individuals who earn income from various sources such as employment, business or profession, rental income, capital gains, dividends, interest, royalties, and other sources are obligated to report their income and pay taxes accordingly.

Special Circumstances: There may be additional requirements or exemptions based on specific circumstances, such as foreign nationals working in Indonesia, retirees, or individuals with specific types of income.

It’s essential for individuals to stay informed about the latest tax regulations and consult with tax professionals if they are unsure about their tax obligations. With our registered tax consultants with more than a decade of experience,  you can start consultation to assist with your tax report & enjoy an easy and smooth tax report process.