Comprehensive Guide: Reporting Non-Taxable Income in Corporate Income Tax Return via Coretax

Introduction

In the Indonesian tax landscape, not all cash inflows or revenues received by a Corporate Taxpayer are categorized as Income Tax Objects (Objek PPh). The Income Tax Law (UU PPh) specifically excludes certain items from taxation, known as Non-Taxable Income (Penghasilan Non Objek). The most common example for Corporate Taxpayers post-Job Creation Law is dividends originating from domestic sources.

The implementation of the Core Tax Administration System (Coretax) brings a significant transformation in how Taxpayers report this type of income. While in the old system (PDF e-Form), reporting was often separate and fiscal reconciliation was done manually at the end, Coretax introduces an integrated approach. Non-Taxable Income reporting is now closely linked between the Master Form (Induk), Attachment 1 (Financial Statements), and Attachment 4 (List of Final and Non-Taxable Income).

Errors in mapping this income can be fatal: income that should be tax-free could be calculated as taxable income (general rate), causing unnecessary overpayment, or conversely triggering compliance indicators. This article will thoroughly explore the technical mechanism in Coretax, validation flows, and filling illustrations.

Legal Basis and Regulatory References

This reporting procedure is structured based on the latest regulatory framework in the Coretax ecosystem:

1. Director General of Taxes Regulation Number PER-11/PJ/2025: Regarding the Form, Content, and Procedure for Filling Annual Income Tax Returns for Corporate Taxpayers. This regulation governs the structure of Attachment 1 (Fiscal Reconciliation) and Attachment 4 (Final and Non-Taxable Income).
2. Law Number 7 of 1983 as amended by the Harmonization of Tax Regulations Law (HPP): Article 4 paragraph (3) which regulates types of income excluded from tax objects (such as Dividends, Grants, Inheritance, etc.).
3. Minister of Finance Regulation Number 81 of 2024: Regarding Tax Provisions for the Implementation of the Core Tax Administration System.

Trigger Mechanism in Coretax

Coretax uses wizard logic or pre-validation questions to simplify the tax return interface. The form for Non-Taxable Income will not appear automatically unless the Taxpayer provides confirmation.

Steps to Activate the Form:

1. Login & Impersonate: Log in to Coretax using the Management account, then perform impersonating to the Corporate Taxpayer account,.
2. Create Draft SPT: Enter the Corporate Annual Income Tax Return menu.
3. Question in Master Form Part C: In the Master Form, the Taxpayer will face a question in Part C number 3: "Does the Taxpayer receive or obtain income that is not a tax object?".
   • Select "YES": The system will activate Attachment 4 (L4) Part B.
   • Select "NO": The Non-Taxable reporting section will be locked/hidden.

Filling Flow and Data Integration

In Coretax, reporting Non-Taxable Income involves two main interrelated attachments: Attachment 4 (L4) as detailed breakdown, and Attachment 1 (L1) as the fiscal reconciliation worksheet.

1. Filling Attachment 4 Part B (Detailed Breakdown)

Attachment 4 Part B is titled "Income Not Included as Tax Object". Here, the Taxpayer must detail the type and value of such income. The data format filled includes,:

• Income Code: Selecting from a dropdown list (e.g., Dividends, Grants, Insurance Claims, etc.).
• Income Type: Description of income.
• Income Source: Name of the party providing the income.
• Gross Income: Gross value of revenue received.

Prepopulated Feature: Coretax has the capability to pull data (prepopulated) if the Non-Taxable income has been reported by the counterparty through the same system (e.g., dividends reported in Coretax e-Bupot as Non-Object). However, if the data has not appeared, the Taxpayer can add it manually (Key-In).

2. Filling Attachment 1 (Financial Statement Reconciliation)

This is the biggest change in Coretax. Attachment 1 (L1) now functions as an integrated fiscal reconciliation worksheet. Taxpayers no longer just input "Commercial Value" and then perform fiscal correction in a separate attachment.

In Attachment 1, every revenue account (such as Sales, Other Income) has mapping columns,,:

• Commercial Value: Value according to Financial Accounting Standards (SAK).
• Not Included as Tax Object: Specific column to separate the Non-Taxable portion.
• Subject to Final Tax: Specific column for Final Tax.
• Non-Final Tax Object: Residual column (automatic) which will be subject to the general rate.

Filling Logic: If a Taxpayer has "Other Income" of IDR 1 Billion, where IDR 200 Million is Dividend (Non-Taxable), then the Taxpayer must:

1. Input 1 Billion in the Commercial Value column.
2. Input 200 Million in the Not Included as Tax Object column.
3. The system will automatically calculate the rest as Non-Final Tax Object (if there is no Final Tax).

This replaces the manual "Negative Fiscal Correction" mechanism which was often confusing in the old system. In Coretax, the correction happens inline (in the same row) through column mapping.

Case Illustration

To clarify, let's use the case study of PT Investama Sejahtera.

Filling Steps in Coretax

Step 1: Activation in Master SPT

In Part C of the Master SPT, PT Investama Sejahtera answers "YES" to the question: "Does the Taxpayer receive or obtain income that is not a tax object?".

Step 2: Filling Attachment 4 Part B (Non-Object Detail)

Step 3: Filling Attachment 1-C (Profit & Loss - Trading)

In Attachment 1, PT Investama Sejahtera maps its revenue accounts. Below is a simulation of the input table in Coretax:

Critical Points and Validation Tips

1. Consistency of L1 and L4: The total amount in the "Not Included as Tax Object" column in Attachment 1 must match or be consistent with the total Gross Income in Attachment 4 Part B. The Coretax system likely has cross-validation that will trigger an error message or warning if these figures do not sync.
2. Foreign Dividends: Note that Dividends from Abroad can also be Non-Taxable if reinvested in Indonesia according to PMK-18/2021. If eligible, this is reported in Attachment 4 Part B and Attachment 1 Non-Object column. However, the Taxpayer is also required to submit an Investment Realization Report through a separate service menu in Coretax,.
3. Related Costs (Joint Cost): Remember the principle of Matching Cost Against Revenue. If the company has Non-Taxable income, costs incurred directly to obtain such income cannot be deducted (Non-Deductible).
   • In Attachment 1, these costs must be fiscally corrected positively.
   • Example: If there are bank administration fees specifically to disburse dividends, these costs must be corrected positively in the "Positive Fiscal Adjustment" column on the related expense account.
4. Supporting Documents: Although Coretax is data-driven, Taxpayers are still advised to keep underlying documents (such as GMS regarding dividend distribution or insurance policies) to anticipate audits (SP2DK).

Conclusion

Reporting Non-Taxable Income in the Coretax Corporate Annual SPT requires a mindset shift from merely "filling forms" to "mapping accounts". The integration feature in Attachment 1 makes it easier for Taxpayers to see the fiscal impact of each revenue account directly without complicated separate reconciliation working papers.

The key to success is a strong understanding of the definition of Non-Object according to the Income Tax Law and precision in sorting (mapping) commercial values into the "Not Included as Tax Object" column in Attachment 1, as well as detailing them in Attachment 4. With thorough data preparation, the reporting process in Coretax will be more efficient, transparent, and accountable.