A Comprehensive Guide to Annual Individual Income Tax Returns (Manual Forms) in the Coretax Ecosystem

1. Introduction: Digital Transformation and the Remaining Manual Space

The implementation of the Core Tax Administration System (Coretax) marks a tax revolution in Indonesia that prioritizes digital business processes, integrated data (prepopulated), and borderless services. Although this system is designed to minimize physical interaction and paper usage for efficiency and data accuracy, tax regulations still provide space for the submission of Tax Returns (SPT) manually or in writing under certain conditions and for specific tax subjects.

In the Coretax system, the reporting paradigm changes drastically from previously separate forms (such as 1770, 1770 S, 1770 SS) to a unified form that is dynamic based on the Taxpayer's profile. However, a fundamental question remains: amidst this digital onslaught, who is still allowed to use paper forms? and what is the mechanism? This article will thoroughly explore these provisions based on the latest regulation PER-11/PJ/2025 and Coretax technical guides.

2. Legal Basis and Regulations

Understanding the reporting of Annual Individual Income Tax Returns (PPh OP), whether electronically or manually, is based on the following legal framework:

• Law Number 6 of 1983 concerning General Provisions and Tax Procedures as amended by Law Number 7 of 2021 (Harmonization of Tax Regulations Law).
• Minister of Finance Regulation Number 81 of 2024 concerning Tax Provisions for the Implementation of the Core Tax Administration System.
• Director General of Taxes Regulation Number PER-11/PJ/2025 concerning Provisions for Reporting Income Tax, VAT, LGST, and Stamp Duty for the Implementation of the Core Tax Administration System.
• Coretax Manual Book 2024 - Module for Annual Individual Income Tax Return Reporting.

3. Who Can Use Paper Tax Returns?

Although Coretax provides prepopulated features that greatly facilitate online reporting, the submission channel for Annual Individual Income Tax Returns does not necessarily eliminate the manual route. Based on technical guides, submission channels include Paper/Electronic, KPP Counter, Post, or Online. However, there are important exceptions or restrictions on who must use online and who may use paper. Based on the analysis of Coretax procedures:

A. Groups Encouraged/Mandated Online (Paper Not Recommended)

Non-Employee Individual Taxpayers (Business Owners/Freelancers) with Nil or Underpayment (KB) status are excluded from certain manual/paper channels in the context of digital administration ease. This group is strongly encouraged to use the Taxpayer Portal due to the complexity of attachments (Balance Sheet, Profit and Loss) which are now standardized digitally.

B. Groups Still Allowed to Use Paper

The use of paper forms (Hardcopy) is generally still permitted for:

• Employee Individual Taxpayers: Especially those working for one employer and having no business activities, who may have limited digital access.
• Taxpayers in Remote Areas: Who have internet infrastructure constraints making it impossible to access the Coretax Portal.
• Elderly Taxpayers: Who may have technological literacy barriers.
• Submission via Post/Expedition Services: Taxpayers who choose to send physical SPT via registered mail or courier/expedition services are still accommodated as part of the Omni Channels service.

4. Significant Differences: Paper vs. Coretax Online

Using paper forms in the Coretax era has different administrative consequences compared to online reporting. Here is the comparison based on Coretax features:

5. Procedures for Submitting Paper Tax Returns

For Taxpayers who meet the criteria and decide to use paper forms, the applicable procedures according to PER-11/PJ/2025 and service flow are:

• Downloading/Obtaining Forms: Taxpayers pick up physical forms at the KPP or download the PDF format from the official DGT website, then print them. It is important to note that the form format must comply with PER-11/PJ/2025, not the old forms (old 1770/1770S), because the attachment structure has changed (e.g., Attachment L1 for Financial Statements),.
• Manual Filling: Fill in the Master SPT and relevant Attachments (e.g., Attachment 1 for Profit & Loss/Balance Sheet for entrepreneurs, or Attachment for withholding slips).
• Wet Signature: The form must be signed with a wet signature (original signature) by the Taxpayer.
• Submission:
  • Direct Visit: Submit to the Integrated Service Place (TPT) at the registered KPP.
  • Post/Expedition: Send via registered mail or expedition service with proof of mailing.

6. Case Illustration: Who Uses Paper, Who Uses Coretax?

To clarify the segmentation of Paper vs Online SPT users in the Coretax era, here is a case illustration table:

Table of Annual Individual Income Tax Reporting Scenarios

7. Risks and Challenges of Using Paper SPT in the Coretax Era

Taxpayers must realize that although allowed, the use of Paper SPT brings its own challenges:

• No Real-time Validation: Calculation errors or tariff application errors (e.g., progressive rate Article 17) will not be detected upon submission, potentially causing the SPT to be considered Incomplete (SPT TL) later.
• Loss of Prepopulated Benefits: Taxpayers must collect physical withholding slips from employers themselves. If the employer already uses Coretax (e-Bupot 21/26), the data is actually already available in the system,. Filling manually means double work.
• Longer Processing Time: Paper data must be re-recorded by tax officers into the Coretax system (Taxpayer Ledger), which takes longer than digital data entering the Core System directly.

8. New Form Structure (According to PER-11/PJ/2025)

If Taxpayers choose to use paper, they must understand the new form structure to be filled (no longer the simple 1770 S/SS):

• Master SPT: Contains identity, income summary, and tax calculation.
• Attachment L1 (Financial Statement/Record Keeping): For entrepreneurs/freelancers, the balance sheet and profit & loss formats are now standardized,.
• Asset & Liability Attachment: Must be filled manually without the help of last year's data which usually appears automatically online.
• Family Attachment: Family Tax Unit (DUK) data must be filled manually.

9. Conclusion

Although Paper Annual Individual Income Tax Returns are still possible (especially via post/expedition and for certain employees), the DGT's policy direction through Coretax clearly points towards full digitalization. The use of paper forms in the PER-11/PJ/2025 era becomes an "emergency" or "last resort" option which is less efficient because it eliminates the benefits of prepopulated features and automatic validation.

For Non-Employee Taxpayers (Entrepreneurs/Freelancers) with Nil or Underpayment status, the system implicitly closes the convenience of the manual route and directs to the online route to ensure the accuracy of complex data. Therefore, migrating to online reporting via the Taxpayer Portal is the wisest step for effective and efficient tax compliance.