Filling Out Gross Turnover to Calculate Art. 31E Income Tax in Corporate Annual Tax Return in Coretax

1. Introduction

The implementation of the Core Tax Administration System (Coretax) brings significant modernization to tax reporting procedures in Indonesia, including for Corporate Taxpayers. One crucial feature undergoing automation is the calculation of the Rate Reduction Facility pursuant to Article 31E of the Income Tax Law (UU PPh).

The Article 31E facility provides an incentive in the form of a 50% rate discount from the general rate (currently 22%) applied to Taxable Income (PKP) derived from the portion of gross turnover up to IDR 4,800,000,000. This facility is available to resident Corporate Taxpayers with a gross turnover of up to IDR 50,000,000,000 in one tax year.

In the old system (e-Form), Taxpayers often had to manually calculate the proportion of this facility on separate worksheets before entering it into the main tax return. However, in the Coretax ecosystem regulated under PER-11/PJ/2025, this calculation is done systematically through Attachment 8 (Lampiran 8). This article will guide you in detail on how to fill, validate, and illustrate the calculation within Coretax.

2. Legal Basis and Regulations

Before entering technical filling, it is important to understand the legal foundation that forms the basis of the Coretax algorithm logic:

1. Income Tax Law Article 31E Paragraph (1): Regulates the right to rate reduction for Corporate Taxpayers with turnover up to IDR 50 Billion.
2. Minister of Finance Regulation Number 81 of 2024: Tax Provisions for the Implementation of the Core Tax Administration System.
3. Director General of Taxes Regulation Number PER-11/PJ/2025: Regulates the form, content, and procedure for filling Annual Corporate Income Tax Returns in Coretax, specifically designating Attachment 8 as the form for this facility calculation.

3. Workflow in Coretax

In Coretax, the process of claiming the Article 31E facility is not done directly on the Main Page (Induk), but through the following flow:

1. Data Preparation: Taxpayers fill out Financial Statements (Balance Sheet and Profit & Loss) in Attachment 1 (e.g., L1-C for Trade or L1-B for Manufacturing) to generate Fiscal Net Income.
2. Loss Compensation: If any, filled in Attachment 7.
3. Tariff Selection in Main Form: In the Main Form Part D Point 11, the Taxpayer selects the option "c. Facility Tariff as per Article 31E paragraph (1) Income Tax Law".
4. Filling Attachment 8: Once the above option is selected, the system will direct or require the filling of Attachment 8. This is where Gross Turnover is input.
5. Automatic Calculation: The Coretax system will calculate the portion of PKP receiving the facility and the portion that does not, then calculate the total Income Tax Payable.
6. Population to Main Form: The Income Tax Payable value from Attachment 8 will flow automatically to Main Form Part D Point 12.

4. Technical Guide for Filling Attachment 8

Based on the Coretax layout, Attachment 8 is titled "Calculation of Income Tax Rate Reduction Facility for Resident Corporate Taxpayers Based on Article 31E Paragraph (1) of the Income Tax Law". Here are the column details:

A. Input Component (Taxpayer)

B. Output Component (System Automatic Calculation)

Taxpayers do not need to manually calculate this part but must understand it for verification:

5. Case Illustration

To clarify, let's use a case study of a medium-sized trading company.

Taxpayer Profile: PT Sukses Mandiri

• Business Type: Electronic Trading (Wholesale).
• Tax Year: 2025.
• Status: Resident Corporate Taxpayer.
• Financial Data:
  • Business Gross Turnover: IDR 20,000,000,000 (20 Billion).
  • Non-Business Income (Deposit Interest - Final): IDR 100,000,000.
  • Non-Business Income (Equipment Rent - Non-Final): IDR 500,000,000.
  • Deductible Expenses (3M): IDR 18,000,000,000.
  • Positive Fiscal Correction: IDR 200,000,000.

Step 1: Determining Gross Turnover for 31E Requirement

Gross Turnover for facility determination is the total gross revenue before expenses.

• Business Turnover: IDR 20,000,000,000
• Rental Income (Non-Final): IDR 500,000,000
• Total Gross Turnover: IDR 20,500,000,000

Step 2: Calculating Taxable Income (PKP)

This data flows from Attachment 1 to the Main Form.

• Commercial Net Income: (20.5 B - 18 B) = IDR 2,500,000,000.
• Fiscal Correction: + IDR 200,000,000.
• Taxable Income (PKP): IDR 2,700,000,000.

Step 3: Filling and Calculation in Coretax

Below is a simulation of the data display in Attachment 8 of Coretax based on PT Sukses Mandiri's case.

Coretax Attachment 8 Simulation Table

Analysis:

1. PT Sukses Mandiri is entitled to the facility because the turnover of IDR 20.5 Billion is still under the IDR 50 Billion limit.
2. Since the turnover is above IDR 4.8 Billion, the 50% facility does not apply to the entire PKP, but proportionally.
3. Coretax performs mathematical rounding according to system rules.
4. The figure IDR 524,458,536 will automatically appear in the Main SPT Part D number 12 as Tax Payable.

6. Critical Points and Validation Tips

When filling out Gross Turnover in Coretax, pay attention to the following to avoid errors or underpayment:

1. Data Consistency: The Gross Turnover value input in Attachment 8 must be consistent with the data in Attachment 1 (Financial Statements). If Attachment 1 Sales are IDR 20.5 Billion, do not enter IDR 20 Billion in Attachment 8. Coretax has cross-validation features that may reject the SPT if data is not synchronized.
2. Non-Business Income: Ensure to include regular non-business income into the gross turnover component if referring to commercial accounting definitions, as the 31E divisor is "Gross Turnover," not just "Business Turnover."
3. Tax Tariff: Ensure you have selected the option Tariff Facility Article 31E in Main SPT Part D Number 11. If you choose "General Tariff," the system will not display Attachment 8 and will directly multiply PKP by 22%, which would be detrimental to the Taxpayer (paying more).
4. IDR 50 Billion Limit: If the Gross Turnover you input exceeds IDR 50,000,000,000, the Coretax system will usually issue a warning or disable the 31E facility calculation and direct to the general tariff (Article 17).

7. Conclusion

The Article 31E PPh calculation feature in Coretax is designed to reduce human error in calculating facility proportions. Taxpayers only need to focus on ensuring the accuracy of the Total Gross Turnover input in Attachment 8. This automation simplifies tax compliance but requires Taxpayers to be more meticulous in presenting Financial Statements in Attachment 1 because those figures become the basis for automatic calculations throughout the system.

Reference Regulations

• Director General of Taxes Regulation Number PER-11/PJ/2025 regarding the Form, Content, and Procedures for Filling Annual Income Tax Returns,.
• Minister of Finance Regulation Number 81 of 2024 regarding Tax Provisions for the Implementation of the Core Tax Administration System.
• Law Number 7 of 1983 regarding Income Tax as amended by the Harmonization of Tax Regulations Law (HPP).