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View all search resultsIndonesia sees slight dip in tax compliance amid extended holidays
Only 12.34 million taxpayers submitted their tax returns before this year's April 1 deadline. The figure falls short of last year’s 12.7 million tax return submissions under a similar deadline.
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Tax matters: A tax officer provides consultancy services on Sept. 1, 2020, at the regional chapter (KKP) of the Taxation Directorate General (DJP) in the Cicadas area of West Java’s capital, Bandung. (Courtesy of/Bandung tax office)
T
ax compliance has declined slightly this year, with the Taxation Directorate General (DJP) reporting that only 12.34 million taxpayers submitted their tax returns by the April 1 deadline. Of these, 12 million were individual taxpayers, while the rest were corporations.
This figure falls short of last year’s 12.7 million tax return submissions under a similar deadline. This year’s realization also lags behind the DJP’s target of 16.21 million taxpayers, or 81.92 percent of those required to report.
According to DJP spokesperson Dwi Astuti, the drop in compliance was largely due to an unusually high number of national and extended holidays, which shortened the working days.
The tax reporting deadline landed between an extended holiday stretching from March 28 to April 7, covering Nyepi and Idul Fitri celebrations.
To mitigate it, the tax office has waived administrative penalties for individuals who submit their tax returns by the end of April 11.
Corporations still have time to file their tax returns by the end of April 30, a month later than individual taxpayers.
In Indonesia, certain taxes are dealt with by third parties, such as employee income tax, with employers deducting the amount directly from salaries and paying the sum to the state.
