Tax Alert 02.2020: Option to File 1771-Y (Extension of Corporate Tax Return) by April 30, 2020

The DGT just issued DGT Regulation No. 06/PJ/2020 dated April 17, 2020 on relaxation on the requirements of attaching supporting documents for Corporate Annual Tax Return (1771). Based on this Press Release, companies that are filing their 1771 FY 2019 by this April 30, 2020 are only required to file:

Main Form of 1771, and Attachments 1771 I – VI;
Attachment 8A – Transcript of Elements of Financial Statements;
Proof of payment (Bukti Penerimaan Negara) if there is corporate tax payable.

The other supporting documents such as Attachment 1A – 7A, Nominative Lists, DER Worksheets, etc. can be provided by the end of June 30, 2020 by filing Amendment 1 of 1771 FY 2019. However, this relaxation is not applicable to those Corporate taxpayers who have corporate tax overpayments, or requesting accelerated restitution.

In addition to the above, for Corporate Clients that are not yet ready or able to file their Normal 1771 FY 2019, another option to consider is to file for 1771-Y (Extension of Normal 1771) by end of April 30, 2020. Based on General Tax Provision Law Article 3 Paragraph (4), Taxpayer may extend the period for filing an Annual Income Tax Return for a period of not more than 2 (two) months by submitting a written notice. The written notice meant in this provision is 1771-Y. The technicalities regarding filing 1771-Y is elaborated in DGT Regulation No. 21/PJ/2009 as you can find in the Attachment below.

We advise to attach the following with your Form 1771-Y:

Your tentative Financial Statements for FY 2019. Please put the word “SEMENTARA” in the title section of your Financial Statements to indicate that they are not the final version;
Your tentative calculation of Income Tax Art. 29 payable for FY 2019;
Your tentative calculation of Income Tax Art. 25 payable for FY 2020 (please remember to use the new Corporate Tax Rate of 22%, as stipulated in PERPU No. 1 Year 2020, Article 5);
If your financial statements are being audited by CPA, the original Letter from your CPA stating that your financials are currently being audited;
If your financial statements are not being audited by CPA, an original Statement Letter from Director / Partner of your Company stating that your financials for FY 2019 have not yet been closed. The letter should be printed on your Company’s Letterhead, and signed on Stamp Duty Rp. 6,000;
Proof of payment of any Income Tax Art. 29 payable (if any).

Please note that 1771-Y cannot be filed online via e-Filing, so it needs to be filed via Registered Post / Courier (JNE/TIKI/similar services). For filing via Registered Post / Courier, please follow the guidelines provided in DGT Regulation No. 2/PJ/2019, Article 10 (attached below).

Attachments :
SP-16 Relaksasi SPT
PER-06.PJ.2020
PER_21_PJ_2009 perpanjangan SPT
PER 02.2019 – Tata Cara Filing, Penerimaan, Pengolahan SPT
1771_Y_Badan_Rupiah 2016
spt1771$Y