Tax Reporting

As provided in the Act, the notice of Taxation (SPT) has the function as a means for the taxpayer in reporting and calculating the amount of Tax charged is actually payable. In addition the notice function to report the payment or repayment of Tax the taxpayerwell done itself or through the mechanism of cutting and the voting is done by thecutter/Gleaner, reported assets and liabilities, and the payment of a cutter or acollector of the Tax collection and cutting have been carried out.

So the notice has important significance both for the Taxpayer and Tax reform. Tax reporting delivered to KPP or KP2KP where the Taxpayer is registered. SPT can be distinguished as follows:

SPT SPT, i.e. the Period used for the monthly tax payment melakukanPelaporan.

There are some Time namely: SPT PPh Pasal 21, PPh Pasal 22, PPh Pasal 23, PPh PasalPPh 25, Article 26, article 4 of the PPh (2), PPh Pasal 15, PPnBM, as well as VAT andVAT Collector

SPT annual, i.e. SPT used annual untukPelaporan.

There are several types of SPT: Annual tax payers and tax payers Private People

Currently specific to the SPT The VAT already can be submitted electronically via the e-Filing application. Submission of SPT's annual income tax can also be made online through the application of e-SPT.

KeterlambatanPelaporan for The SPT VAT subject to a fine of $ 500,000 (five hundredthousand dollars), and to other Time SPT fined Rp 100,000,-(one hundred thousandrupiah). As for the delay in Annual Personal income tax People SPT especiallybeginning in the 2008 Tax imposed a fine of Rp 100,000,-(one hundred thousand dollars), and Annual income tax Agency SPT imposed fines amounting to Rp.1,000,000(one million rupiah).

Taxpayer Registration Services

The Directorate General of Taxes provides special service to citizens who have not registered as taxpayer yet. The registration service gives them opportunity to have Taxpayer Identification Number (NPWP). The service completion period is 1 (one) working day after the application is fully received. Citizens can directly go to tax office to apply the registration or they can also get it through e-Registration

They need to support the application with additional documents as follow:
a. Individual Taxpayers both those who run their own businesses or not (employees) have to prepare:
- Copy of Resident Identification Card, or Passport for Foreigners.
b. Entities/Corporate Taxpayers have to attach:
- Copy of Deed of the entity estabishment.
- Copy of Certificate as Branch/Permanent Establishment (BUT) from the central office abroad.
- Copy of Corporate�s leaders� Taxpayer Identification Number.
- Copy of Resident Identification Card of corporate�s Leaders (Indonesians), or Passports if the Leaders are Foreigners.
c. Government Treasurers need to prepare:
- Letter of Appointment as Government Treasurer.
- Copy of his/her Resident Identification Card.
d. Joint Operation as Tax Withholder:
- Copy of Certificate/Agreement Letter/Deed of Establishment as a Joint Operation.
- Copy of Resident Identification Card of corporate�s Responsible Persons (Indonesians), or Passports if the Responsible Persons are Foreigners.
- Copy of Responsible Persons� Taxpayer Identification Number.

The applicants have to consider that according to PER 44/PJ/2008, they should fill out the registration form clearly based on the real identity stated in Resident Identification Card or other certificates such as name, address, domicile or place of business. It will avoid the difference identity as taxpayer and as resident or business entity.

In conclusion, the DGT will always serve every single citizen or entity who wants to register as taxpayer. The service starts when they apply the registration and the process finishes right after tax authority sign out the Letter of Taxpayer Registration and print out the Tax Identification Number Card within one business day.

Observing unauthorized taxable employers list, to avoid tax pinalty

Taxable Employers

Entrepreneurs are Taxable according to the law (Act) Number 42 year 2009 on value added tax (VAT) is a businessman who does the surrender of Taxable Goods (BKP) and/or delivery of Taxable Services (JKP) which are taxed under the value added tax law. So, we can conclude that Employers are Taxable subject to the value added tax. It means that entrepreneurs must charge VAT when doing the delivery of goods and/orServices taxed under law (in this case the value added tax). However, not all employershave the obligation. Small entrepreneurs are exempt from these obligations.

What is meant by small entrepreneurs are entrepreneurs who during one fiscal yeardid surrender the goods and/or Taxable Taxable Services by the amount of the grosscirculation and/or gross receipts of not more than $ 600.000.000 fare (six hundredmillion rupiah). The amount is the sum of the overall delivery of the BKP and/or JKPconducted by Employers Taxable activities in the framework of his efforts. For example, consider the illustration below.

PT ABC is a company that has a bookstore that trade in Stationery Office books andschool textbooks. The company was established in 2010. In 2010, the company's grosscirculation reached Rp fare 300,000,000 (three hundred million rupiah). Based on the above mentioned limitations, PT ABC still belongs to small entrepreneurs and not obliged to charge VAT.

In 2011, the sale of PT ABC from his fare of Rp 520.000.000 (five hundred and twentymillion rupiah). Because of advances in his PT ABC intends to replace the car companythat has been used by shareholders. Old cars are sold for Rp 100,000,000 entrance(one hundred million rupiah).

When we look at the overall gross PT ABC circulation in 2011 of 620.000.000 fare (six hundred and twenty million rupiah). With a gross of the circulation, PT ABC no longeris a small businessman. However, because the turnover of Rp 100,000,000 entrance(one hundred million rupiah) is not a submission made by the employers within the framework of its business activities, then the PT ABC in 2011 remain entitled to bear the name of a small Businessman, except PT ABC enlisted as a Taxable Entrepreneur.

Rights and obligations of Taxable Employers

As a businessman who has been confirmed as Taxable Employers, PT ABC has an obligation to:

levy,

deposit, and

report

VAT and/or Vat payable upon submission of the BM Goods and/or Taxable TaxableServices it does.

In addition to these obligations, PT ABC has the right to:

credit the VAT charged by supplier

get back (restitution) or compensate the excess taxes that have been withheld by its supplier in terms of taxes withheld its supplier is greater than the tax that has beenpicked up from ABC'S customers, PT.

For more details, let's look at the following example (we still use PT ABC that is similar to the example above):

To satisfy its trading goods stock, PT ABC bought ATK to several suppliers, includingPT XYZ (Taxable Entrepreneur, too).

In January 2011 a total transaction both companies were as follows:

PT ABC buying office stationery "only" from PT XYZ of Rp 10,000,000 fare (ten million dollars)

PT ABC did direct sales to buyers 15,000,000 fare of Rp (fifteen million rupiah)

Aspects of Taxation (VAT) from two of the above transactions is as follows:

PT XYZ issue a tax receipt for their sales to PT on ABC. PT ABC charged VATamounting to Rp 1,000,000 fare.

This Tax invoice has two different functions:

For PT XYZ is a tax invoice Tax Invoices Exodus;

As for PT on ABC, this tax invoice Tax Invoice is input.

PT ABC issued a tax receipt for their sales to consumers directly with memunut VAT of Rp 1,500,000 fare:

For PT ABC tax receipt is a Tax Invoice Output; and

For the Consumer Direct PT ABC, the Tax Invoice Tax Invoice is input.

PT ABC will then deposit and reporting of VAT as follows:

On sale January 2011 (Total Output Tax Invoice) 1,500,000 fare

Upon purchase of the January 2011 (Total Input Tax Invoice) 1,000,000 b

That remains to be paid in VAT amounting to 500,000 fare

The process of reduction of the Input Tax on the Invoice obtained from PT XYZ abovereferred to the input Tax Crediting.

A number of Rp 500,000 for above mentioned, must be deposited by PT ABC to the State Treasury through perception.

Repeal The Inaugural Taxable Employers

When a confirmation field, based on known data of Taxpayers/Taxable Entrepreneurproved to be untrue, the address is not found, for example, the Tax Directorate General will issue a letter of endorsement for the removal of Taxable Entrepreneur.