Annual Tax Return (SPT) Filling Guidance for Freelancers – Did you know that the status of permanent employees and temporary employees or freelancers can affect the tax obligations of the employees concerned? The answer is yes, the tax provisions for permanent and non-permanent employees are different.
The difference between them is the method of calculating Article 21 income tax (PPh). Generally, employees are still subject to the tariff of Article 17 paragraph (1) letter (a) of the Income Tax Law. But for non-permanent employees a rate of 5% can be charged.
So, what about filling the Annual Tax Return for freelancers? Well, this time we will describe how to fill out and report the Annual Tax Return for temporary employees or freelancers.
Annual SPT reporting for freelancers is actually the same as permanent employees as long as they only have one job. Taxpayers can choose form 1770S or 1770SS according to their income in a year.
1. Prepare withholding tax slips
First, you must request withholding tax slip 1721 A1/A2 to the company you work for. If you are a private employee, then your tax slip withholding is A1.
2. Visiting the DGT Online page
Filling out SPT online is done on the DGT Online page. But before starting the report, make sure you already have a DJP Online account and activate the Electronic Filing Identification Number (EFIN). You can directly visit https://djponline.pajak.go.id. Then, type the Taxpayer Identification Number (NPWP) and password. Don’t forget to fill in the captcha code and login immediately.
3. Choose e-filing or e-form
After logging in and you have successfully logged in, you will see a brief profile of yourself. To report the tax return, please click ‘Report’. Then, you will be given two choices of SPT submission, namely through e-filing or e-form. Choose e-filing.
4. Answer the question
After you sign in, click ‘Create SPT’ which is on the far right side of the computer screen. Then, follow the next steps and answer each question correctly, until all questions have been answered.
No need to be confused which form 1770 will be used, because the form will be automatically selected according to your answer. Form 1770 S is given if your income is above IDR 60 million/year, and 1770 SS if under IDR 60 million/year.
If your salary is above or beyond IDR 60 million/year, then you will be given three options for the SPT form, namely ‘with the form’, ‘with the guide’, and ‘with the upload of SPT’. Choose one of these three options.
If you already know how to fill out form 1770 S, then you can select the answer ‘with the form form’. However, if you want to be guided and made the display form easier, select the answer ‘with guidance’.
After that, you will enter a page that guides you to fill out the form according to instructions. Select the tax return year 2019, then select the tax return status in ‘Normal’, and click ‘Next Steps’.
5. The amount of tax collected
Then you will go to the next page. Here it will be automatically printed ‘Name of Withholder / Tax Collector’ alias the company where you work, and other information until it contains the nominal amount of withholding tax.
6. Fill up the treasure
This treasure column is important to be filled with truth, because it will determine the success of filling out or reporting your SPT. Often, SPT reporting fails because this Treasure column has been missed.
Click ‘Yes’ if you have the treasure. Then click ‘Add’ on the top right hand side of the screen. Then a column appears to be filled. If you have savings, land, accounts receivable, please fill in the nominal amount correctly.
Make sure to fill everything in, including the bottom ‘Description’ section. If there is one column that is not filled in, you will receive a notification in the form of tidak incomplete data ’, so you have to repeat filling in the Treasure column.
On the next page, you will be asked about debt ownership. If you have debt, just mention whether it is KTA (Unsecured Credit), KPR (Mortgage Credit), or others, except credit cards. After that, there will be a number of other questions to be answered.
7. Status of tax obligations of husband and wife
If you are married, click ‘Married’ and fill in your dependents. After that, you will see the total non-taxable nominal income (PTKP). If not married, please click ‘Not Married’. After that there will be several other questions.
8. Calculation of income tax (PPh)
Here you will see the value of net income, taxable income up to withholding income tax. If you do not have additional income other than income that has been deducted by tax, there will be information that says your tax return is zero.
9. Submitting the tax return
After filling the SPT, the next step is verification. Get the verification code by clicking ‘Here’. Later, DGT will send a token to your personal email. After that, enter the verification number from the DGT to the column on the bottom side of the screen. Then click ‘Submit Tax Return’. Done.
In filling the tax return online, it is possible that there will be a number of things that you might not understand, especially for the first time filling out the tax return. We Indoservice, an experienced tax compliance service provider ready to ease your hustle. Contact us now for special offers.