taxation mistakes in indonesia - kesalahan perpajakan di indonesia

5 Frequent Taxation Mistakes in Indonesia to Avoid

InCorp Editorial Team

Table of Content

When you are awaiting a tax refund in Indonesia, you definitely would want to receive it as soon as possible. The best way to assure this is to make sure that your tax refund in Indonesia is not delayed due to some frequent taxation mistakes.

There are tonnes of mistakes for tax submission received by the Indonesian Tax Revenue every year. It might not only cause your refund to be delayed for a long period of time, but it will also cost you or your company in the form of monetary penalties.

This year, do not let the common mistakes get the better of you. In this article, Cekindo has prepared a list of 5 taxation mistakes to avoid so that you can ensure that your tax return submission is error-free for every of your annual tax filing season.


1. Filing Tax Return and Doing Tax Payment Late

This is definitely one of the biggest taxation mistakes of all time. Failing to fulfil tax filing and tax payment deadlines will cause severe tax penalty such as fine.

There are different tax payment dates for different taxes in Indonesia. Most of the taxes are due for payment on the 10th of the following month. However, some taxes such as VAT should be paid at the end of the following month.

As for tax filing deadlines, the deadline for an individual tax return is on 31st March and the deadline for company tax return must be submitted within 4 months after the end of the taxable year.

Do not want to be late again? Download our handy Indonesian Tax Compliance Calendar 2019 for free.indonesia tax compliance calendara

2. Doing the Calculation Wrong

According to the Tax Revenue in Indonesia, one of the most common tax mistakes includes doing the math calculation wrong. In order to avoid this pitfall, it is highly recommended for you to to take your time and enter all the correct data.

You can also use an online software program to do the tax calculation, but the easiest and convenient way is to outsource your accounting by a professional agency.


3. Forgetting the Tax Deductions

If you are unsure about a particular category for a tax deduction in Indonesia, it is recommended for you to read the prints of the instructions on the form carefully. Besides, you might want to check with your tax professional for certain tax deduction category.

You might want to check: An Overview on Indonesia’s Tax Reporting and Planning


4. Mixing up Both Personal Tax and Business Tax

If you mix up your personal and business taxes, no accurate record of funds exists for your tax calculations, which leads to further issues.

In order to prevent this from happening, business owners are always advised to have a clear fund statement by separating their personal and business taxes and funds.

Read also: Accounting and Tax Reporting in Indonesia: Deadlines, Warnings and Recommendations


5. Using the Wrong Tax Filing Form

When you are filing your return, make sure you have clearly chosen the correct tax filing form as a wrong form (that also means wrong filing status) will cause your return to be rejected.

You can obtain all these forms at your local tax offices (KPPs) or even download them online at Directorate General of Taxes (DGT) website. Cekindo can work with you and provide you with all necessary forms and documents with no hassles.


Final Word

Do yourself a favour and make sure that you are not one of those millions of taxpayers in Indonesia who commit the mistakes mentioned above. Your tax returns will be sent back even they consist of minor errors.

Contact Cekindo, and we will make sure that your tax return application, as well as tax compliance in general, is hassle-free and legitimate.

Daris Salam

COO Indonesia at InCorp Indonesia

With more than 10 years of expertise in accounting and finance, Daris Salam dedicates his knowledge to consistently improving the performance of InCorp Indonesia and maintaining clients and partnerships.

Get in touch with us

Lead Form

Disclaimer: The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind.

We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials.

We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.

Frequently Asked Questions