Why Do You Have to Report Taxes Even if It's Late?

In general, January to April is a busy period for taxpayers to report taxes. The Annual Tax Return (SPT) is something that must be reported by both individual taxpayers and corporate taxpayers. Individual taxpayers can report their Annual SPT before March 31, and Corporate Taxpayers can report their Annual SPT before April 30 each year. This has been regulated in Law Number 7 of 1983 concerning Income Tax (UU PPh), as amended several times, most recently by Law Number 6 of 2023 concerning the Determination of Government Regulations in Lieu of Law Number 2 of 2022 concerning Job Creation into Law -Law (Creation Law).

Taxpayer compliance is a very important factor in realizing the achievement of tax revenue targets and annual SPT reporting. If a taxpayer reports his/her Annual SPT beyond the predetermined reporting limit, according to Law Number 6 of 1983 concerning General Provisions and Tax Procedures (UU KUP), as amended several times most recently by the Ciptaker Law, then the delay will be subject to administrative sanctions. a fine of IDR 100,000 for individual taxpayers and an administrative sanction of IDR 1,000,000 for corporate taxpayers.

The fine will be collected through a Tax Bill and the taxpayer must pay the sanction in the form of a fine in accordance with the time period specified in the Tax Bill. So why must the Annual Tax Return be reported even if it is late?

Legal Compliance

As a good Indonesian citizen, it is appropriate to report the Annual Tax Return as a form of taxpayer obligation and compliance.Even though it's late, it doesn't mean you can't report it.

The Annual SPT is the taxpayer's responsibility for their tax obligations during the year which are regulated in existing laws and regulations. Every citizen has the obligation to report their income to the tax authority within the specified time. Annual SPT as a check and balance on rights and obligations will improve the quality of taxpayer compliance, and of course will increase state revenues from the taxation sector.

Increasing a country's revenues will greatly help in accelerating development, both infrastructure and human resources. This development includes public facilities, the health sector, education, providing subsidies and social assistance for people in need, and others.

Avoiding Larger Sanctions

By continuing to delay reporting the Annual Tax Return, the administrative sanctions or fines you will receive will also be greater. This is regulated in the KUP Law jo. The Ciptaker Law states that taxpayers who are late or do not report their annual tax return will be subject to administrative fines, criminal sanctions and criminal sanctions.

Even if a taxpayer deliberately does not report his Annual Tax Return, he may be subject to sanctions in the form of criminal sanctions in the form of imprisonment for a maximum of six months to six years and may be subject to fines as regulated in Article 39 paragraph (1) of the KUP Law jo. Job Creation Law. Reporting the Annual Tax Return on time is a preventive step that can avoid the risk of being subject to criminal sanctions which can have serious financial, reputational and legal impacts on taxpayers. Therefore, apart from being a legal obligation, reporting the Annual Tax Return on time is also a wise action to avoid greater consequences in the future.

State Revenue Support

As an obedient citizen, reporting taxes is a form of high compliance as a taxpayer. It is not just a legal obligation, but also indicates a moral commitment to the country's development. Success in complying with tax obligations creates a strong foundation for sustainable economic growth and improving the welfare of society as a whole.

Although reporting the Annual SPT after the specified time limit can result in losses as mentioned above, this does not change the fact that reporting the Annual SPT is still an obligation that must be fulfilled by every taxpayer.

The Director General of Taxes continues to provide outreach to the public regarding awareness of tax payments and reporting. This is expected to increase public knowledge and awareness, especially taxpayers, of the importance of taxes for the country's development. By holding socialization, it is hoped that it can increase taxpayer compliance. In turn, the number of tax reports can increase according to the target. However, the socialization held by the government needs to be balanced with the condition of taxpayers in knowing, understanding and implementing tax provisions correctly and obediently. The higher the level of taxpayer awareness, the better understanding and tax reporting will be.

Apart from that, taxpayers' concern in reporting taxes on time will certainly have various good impacts on Indonesian society in the future. Timely tax revenues enable the government to allocate resources more efficiently to infrastructure development projects, education, health, and other social programs that provide direct benefits to citizens. Thus, reporting taxes on time is not only an individual responsibility, but also an investment in a better future for the country and society as a whole.

Therefore, the best thing is to report taxes on time.

More at: https://stats.pajak.go.id/id/article/mengapa-besar-lapor-pajak-walau-tertengah