7 Common Mistakes to Avoid When Reporting Income Tax in Indonesia

Reporting income tax (PPh) in Indonesia is an annual obligation for every taxpayer, both individuals and entities. Although the process is now easier thanks to the e-Filing system and Coretax implemented by the Directorate General of Taxes (DJP) since January 1, 2025, many taxpayers still make mistakes that could lead to fines or tax audits.

We will discuss seven common mistakes when reporting income tax in Indonesia. Let’s take a look to ensure your tax report is accurate and trouble-free!

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1. Not Reporting All Sources of Income

One of the biggest mistakes is not reporting all sources of income. Many taxpayers only include their salary from their main job, but other income such as side businesses, investments, stock dividends, or property rentals must also be reported. According to the worldwide income principle, all income, whether from within or outside the country, must be included in the Annual Tax Return (SPT).

For example, if you receive stock dividends of IDR 10 million in 2024, a final tax of 10% (IDR 1 million) must be reported on form 1770S under the final income section. If not, DJP may detect discrepancies through third-party data, such as from the stock exchange, and send an SP2DK for clarification. To avoid this, record all your income throughout the year and ask for tax withholding receipts (e.g., 1721-A1 for private employees) from your employer or other parties.

Use applications like Mekari Klikpajak to keep your income records organized. Make sure all tax receipts are well stored.

2. Late Submission of the Tax Return (SPT)

The deadline for individual taxpayers to submit their Annual Tax Return (SPT) is March 31, while for entities, it is April 30. Delays often occur because taxpayers procrastinate until the deadline approaches, which leads to mistakes due to rushing or DJP Online/Coretax servers going down due to high user traffic. In 2025, DJP recorded a spike in Coretax access just before March 31, causing technical issues such as login failures.

The late submission fine for individual taxpayers is IDR 100,000 per SPT, while for entities, it can reach IDR 1 million. Additionally, delays may trigger further audits by DJP.

Start preparing your tax documents from January. Submit your SPT earlier through e-Filing on the DJP Online website or through official partner applications such as Mekari Klikpajak to avoid server disruptions.

3. Incorrectly Choosing the SPT Form

Indonesia has three types of Annual Individual Tax Return forms: 1770SS, 1770S, and 1770. Form 1770SS is for gross income below IDR 60 million per year, 1770S is for income above IDR 60 million or for those with final income, and 1770 is for taxpayers with a business or freelance profession. Incorrectly choosing a form can invalidate your report or result in incorrect tax calculations.

For example, if your income is IDR 80 million per year but you use 1770SS, the e-Filing system will reject the report because the form doesn’t match. In 2025, Coretax simplifies the form selection process with an automatic guide, but attention to detail is still necessary.

Calculate your total annual gross income, including additional income. Read the form guidelines on the tax.go.id website or consult a tax consultant.

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4. Incorrectly Reporting Assets and Liabilities

The Annual Tax Return (SPT) requires taxpayers to report their assets and liabilities as of the end of the tax year. Many ignore this, only filling in a dash (-) to speed up the process, which risks triggering an SP2DK. For example, if you own shares worth IDR 120 million (market value as of December 31, 2024), this amount must be reported on form 1770-IV under assets with code 032 (shares).

Incorrectly reporting assets may be considered tax evasion, especially if DJP finds third-party asset data. In 2025, Coretax has a stricter data validation feature, so discrepancies are easily detected.

Record all assets (homes, cars, stocks, etc.) and liabilities (loans, debts) with their actual value. Use e-Filing 1770S, which requires the complete attachment of assets.

5. Incorrectly Entering Personal Data

Mistakes in entering the Taxpayer Identification Number (NPWP), name, or address are common, especially for beginners. The NPWP must consist of 15 digits without spaces or punctuation. If incorrect, the SPT may be considered invalid. In 2025, Coretax applies facial validation that compares the taxpayer’s photo with the e-KTP, so personal data must match.

For example, if you enter one wrong digit in your NPWP, the system will display the error SO001 “NPWP Not Found.” This requires you to repeat the process or visit the KPP.

Check your NPWP, name, and address on the DJP Online/Coretax profile before filling out the SPT. Ensure the data matches your e-KTP.

Also read: How to Report Germany Income Tax in 2025

6. Using Office Email for e-Filing

Many taxpayers register for e-Filing or Coretax using their office email, which becomes problematic when they resign and lose access to that email. DJP sends OTP codes or password reset links to the registered email, so you cannot log in if the email is inactive. In 2025, DJP recorded OTP issues as one of 22 Coretax problems.

Use a personal active email to register for e-Filing or Coretax. Update your email data in your DJP Online profile if needed.

7. Not Including Tax Withholding Receipts

Tax withholding receipts (1721-A1 for private employees, 1721-A2 for civil servants) are essential documents showing that income tax has been withheld by the employer. Without this receipt, the SPT is considered incomplete, which may trigger fines or audits. For example, if you resign in mid-2024, make sure to request tax receipts from both your previous and current employers.

In 2025, Mekari Klikpajak simplifies the management of withholding receipts through integration with digital accounting, but taxpayers must still ensure these documents are included.

Store all tax receipts in digital or physical form. Attach a photocopy of the withholding receipt when submitting the SPT via e-Filing.