Underpaid Tax Return? No Worries, Installment Payments Available!
Underpaid Tax Return? No Worries, Installment Payments Available!
Jakarta, CNBC Indonesia - In the annual tax return (SPT) reporting process, some taxpayers occasionally receive an underpayment status. This often causes panic among taxpayers. However, such underpayment status is very common.
Although common, taxpayers must still devise strategies for their payments. They should not let it disrupt their personal cash flow.
With the latest Coretax tax system, the Directorate General of Taxes officially provides facilities for taxpayers to make installment payments and/or deferrals of income tax (PPh) under Article 29. This allows taxpayers to more easily and flexibly manage their cash flow.
According to the official DJP website, a Directorate General of Taxes official named Ashadi Mulyadi explained that taxpayers who can utilise installment or deferral payments for PPh Article 29 are those proven to be experiencing liquidity difficulties.
“In addition, this facility is also intended for those experiencing circumstances beyond their control (force majeure), so that taxpayers are unable to meet their tax obligations on time,” Ashadi wrote in his article, quoted on Thursday (26/3/2026).
To apply for this installment/deferral, there are several administrative requirements:
The taxpayer has submitted the annual tax return for the two previous tax years and the value-added tax return for the three previous tax periods, which are their obligations.
The taxpayer submits an application letter stating the reasons for the application due to liquidity difficulties, the amount of the tax underpayment requested for installment, the installment period, and the installment amount, or the amount of the tax underpayment requested for deferral and the deferral period;
In the case of force majeure, the application is attached with a document in the form of a certificate that the taxpayer is experiencing force majeure from the authorised party;
The application is attached with documents in the form of interim financial statements or financial statements for taxpayers who keep books; or records of turnover or gross receipts and/or gross income for taxpayers who keep records for the tax year for which the installment or deferral is applied;
The taxpayer provides a guarantee in the form of a tangible asset document, with criteria that it is owned by the applicant taxpayer, proven by proof of ownership of the tangible asset, and not currently used as collateral for debt.
The taxpayer’s application must be submitted before the deadline for submitting the annual PPh tax return.
“The DJP is obliged to issue a decision, either approval or rejection of the application, at the latest three working days after the proof of receipt is issued,” he wrote.
Taxpayers who receive approval for installment or deferral of PPh Article 29 payments will be subject to administrative sanctions as regulated in Article 19 paragraph (2) of Law Number 6 of 1983 on General Provisions and Tax Procedures as amended several times, most recently by Law Number 7 of 2021 on Harmonisation of Tax Regulations.
Application Procedure via Coretax
The bureaucratic process is now made much more modern. Taxpayers wishing to apply for installment/deferral can directly submit it through their Coretax account. This innovation ensures taxpayers no longer need to visit the tax office physically.
Here are the application steps:
Open a browser and go to www.coretaxdjp.pajak.go.id
Log in using the 16-digit taxpayer identification number and password
Select the Taxpayer Services tab > select administration services > create an administration service application
Select AS.21 Installment/Deferral of PPh Article 29, then choose between LA.21-01 Installment Payment of PPh Article 29 or LA.21-02 Deferral Payment of PPh Article 29
Fill in the application information, then upload the required supporting documents
Click send. The installment/deferral application for PPh Article 29 payment has been successfully sent