Comprehensive Guide: How to Fill Out the Loss Compensation Attachment (Attachment 7) in the Corporate Annual Income Tax Return on Coretax

Introduction

In the Indonesian tax ecosystem, Corporate Taxpayers experiencing fiscal losses have the privilege to compensate these losses against fiscal profits in the following years for up to 5 (five) consecutive years. This provision is governed by Article 6 paragraph (2) of the Income Tax Law (UU PPh).

With the implementation of the Core Tax Administration System (Coretax), the loss compensation reporting mechanism has undergone a digital transformation. No longer just a static PDF attachment or a separate Excel calculation, this calculation is now integrated into the Corporate Annual Income Tax Return (SPT Tahunan PPh Badan) module through Attachment 7 (Lampiran 7). The accuracy of filling out this attachment is crucial as it directly impacts two things: the amount of Taxable Income in the current year (Master/Induk SPT) and the amount of Article 25 Income Tax Installments for the following tax year.

This article will detail the technical steps, the latest table format according to regulations, and case illustrations to ensure your reporting compliance in Coretax.

Legal Basis and Reference Regulations

This filling procedure is based on the following legal frameworks and technical guidelines:

1. Law Number 7 of 1983 concerning Income Tax as amended by the Harmonization of Tax Regulations Law (HPP).
2. Government Regulation Number 55 of 2022 concerning Adjustments to Income Tax Regulations.
3. Minister of Finance Regulation Number 81 of 2024 concerning Tax Provisions for the Implementation of the Core Tax Administration System.
4. Director General of Taxes Regulation Number PER-11/PJ/2025 concerning the Form, Content, and Procedures for Filling Annual Income Tax Returns,.

Trigger Mechanism for Attachment 7 in Coretax

Unlike the old e-Form system where Taxpayers manually selected attachments, Coretax uses logic wizards or pre-validation questions.

Steps to Activate the Attachment:

1. Login to Coretax: Log in using the Person in Charge (PIC) account and perform impersonating to the Corporate Taxpayer account,.
2. Create Draft SPT: Select menu SPT > Create Draft SPT (Buat Konsep SPT) > Select Tax Year and Status (Normal/Correction).
3. Access Master SPT: Enter the Master Form (Induk SPT).
4. Answer Trigger Question: In Part D (Income Tax Calculation) Point 8, there is a question: "Are there any fiscal losses that can be compensated?" (Apakah terdapat kerugian fiskal yang dapat dikompensasikan?),,.
   • If you select YES, the system will automatically display and require the filling of Attachment 7.
   • If you select NO, Attachment 7 will be locked/hidden.

Structure and Format of Attachment 7 (Latest)

Based on PER-11/PJ/2025, Attachment 7 functions to track loss history and its utilization (distribution) over the last 5 years. The data format to be filled is as follows,:

Table 1: Attachment 7 Format in Coretax

Important Notes:

• Data Source: The Fiscal Profit/Loss value must refer to the latest legal product. If Year 2022 has a Tax Assessment Letter (SKP) issued stating a smaller fiscal loss than the SPT, the SKP figure must be input, not the old SPT figure,.
• Compensation Order: The tax system follows the First-In First-Out (FIFO) principle for expiration. The oldest losses (closest to the 5-year expiration) must be compensated first.

Filling Case Illustration

To understand the logic of filling in Coretax, let's use the following case study.

Case Scenario: PT Maju Mundur (Manufacturing)

PT Maju Mundur is reporting its 2025 Annual Corporate Income Tax Return. Here is the company's historical fiscal data:

1. Year 2020: Fiscal Loss (IDR 1,000,000,000) (Based on SPT, not audited). Compensation expiry: 2025.
2. Year 2021: Fiscal Profit IDR 200,000,000. (Used 2020 loss).
3. Year 2022: Fiscal Loss (IDR 300,000,000) (Based on SKP). Compensation expiry: 2027.
4. Year 2023: Fiscal Profit IDR 100,000,000. (Used remaining 2020 loss).
5. Year 2024: Fiscal Profit IDR 100,000,000. (Used remaining 2020 loss).
6. Year 2025 (Current Year): Current Year Fiscal Profit is IDR 800,000,000.

Analysis of Remaining Loss as of Start of 2025:

• Remaining 2020 Loss:
  • Start: (1,000,000,000)
  • Used 2021: 200,000,000
  • Used 2023: 100,000,000
  • Used 2024: 100,000,000
  • Remaining as of Start 2025: (600,000,000). -> Must be fully used in 2025 or it expires.
• Remaining 2022 Loss:
  • Start: (300,000,000). Unused because 2020 loss had priority.

Utilization in Year 2025:

Fiscal Profit 2025 = IDR 800,000,000.

1. Compensation of 2020 Loss (Priority) = IDR 600,000,000.
2. Remaining Profit 2025 = 800m - 600m = 200m.
3. Compensation of 2022 Loss = IDR 200,000,000.
4. Total Compensation This Year (2025) = IDR 800,000,000.
5. Taxable Income 2025 = IDR 0.
6. Remaining 2022 Loss to Year 2026 (Y+1) = 300m - 200m = IDR 100,000,000.

Table 2: Illustration of Coretax Attachment 7 Filling (Tax Year 2025)

Filling Logic Reference:,,,.

Data Integration of Attachment 7 with Other Forms

After you fill in the table above and click "Save", the Coretax system will perform automatic data distribution (auto-populate) to other forms:

1. To Master SPT (Main Form): The value IDR 800,000,000 (Total Column "This Year") will flow to Master Part D Point 8 as a deduction for fiscal net income. Thus:
   • Net Income: IDR 800,000,000
   • Loss Compensation: (IDR 800,000,000)
   • Taxable Income: IDR 0,,.
2. To Attachment 6 (PPh 25 Installment): The value IDR 100,000,000 (Total Column "Next Year") will flow to Attachment 6 Point 2. This will reduce the basis for calculating Article 25 Income Tax installments for 2026, making next year's tax installments smaller or nil,,,.

Tips and Critical Points in Filling

1. SKP Validation: Ensure you check if there is a Tax Assessment Letter (SKP) issued for those loss years. If an SKP exists correcting loss to profit or reducing the loss, you must use the SKP figure. Using old SPT figures corrected by SKP will cause your Annual SPT to be considered incorrect,,.
2. 5-Year Expiration: Coretax likely has automatic year validation. Losses from 2019 can no longer be compensated in the 2025 SPT. Do not force input losses that have expired.
3. Investment Facilities: If your company receives a Tax Allowance or other facilities extending the loss compensation period beyond 5 years (e.g., up to 10 years), ensure you also fill out Attachment 13A/B/C so the Coretax system unlocks that 5-year validation,,.
4. Minus Sign: In Coretax digital data input, ensure you follow the negative number input format determined by the system (usually using a minus sign - before the number or in parentheses, e.g., -1000000000).

Conclusion

Filling out the Loss Compensation Attachment (Attachment 7) in Coretax requires Taxpayers to have neat and legally valid historical data. Automatic integration between Attachment 7, Master SPT, and Attachment 6 simplifies reporting while minimizing manual calculation errors that often occurred previously. The key to success is ensuring the opening fiscal loss balance matches the latest tax assessment and applying the FIFO principle in loss utilization.

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).
• Government Regulation Number 55 of 2022 regarding Adjustments to Income Tax Regulations.