Transforming Professional Tax Reporting: A Step-by-Step Guide to Annual Individual Income Tax Return for Independent Personal Services (NPPN) in Coretax

Introduction

The implementation of the Core Tax Administration System (PSIAP) or Coretax System brings a new paradigm to Indonesia's tax administration. For Individual Taxpayers engaged in Independent Personal Services (such as doctors, lawyers, notaries, consultants, architects, and other experts), filing the Annual Tax Return (SPT Tahunan) is now more integrated. Unlike employees who rely on form 1770 S or 1770 SS, Freelancers use a more complex form (previously 1770) that accommodates net income calculation, either through Bookkeeping or Recording with the Deemed Profit/Net Income Calculation Norm (NPPN).

In the Coretax system, the static form approach is transformed into a data-driven approach with a wizard guide. This article provides a deep technical guide for you, professionals, to navigate Coretax from preparation to submission, along with tax calculation illustrations.

I. Legal Basis and Regulatory Reference

Understanding the legal foundation is crucial to ensure compliance. This guide is based on the following regulations:

• Law Number 7 of 1983 concerning Income Tax as amended by the Harmonization of Tax Regulations Law (UU HPP).
• Minister of Finance Regulation Number 81 of 2024 concerning Tax Provisions in the Framework of Implementing the Core Tax Administration System. This regulation governs the procedures for exercising rights and fulfilling tax obligations in the Coretax era.
• Director General of Taxes Regulation Number PER-11/PJ/2025 regarding the Form, Content, and Procedures for Filling Periodic Income Tax Returns, Withholding Slips, and Annual Tax Returns. This is the main technical guide for filling out forms in Coretax.
• Director General of Taxes Regulation Number PER-17/PJ/2015 regarding the Net Income Calculation Norm (for those using the Recording/NPPN method).

II. Preparation Before Reporting

For Independent Personal Service Taxpayers, data preparation is key. Ensure you have:

• Notification of NPPN Usage: You must have submitted the notification for using the Net Income Calculation Norm within the first 3 months of the relevant tax year. In Coretax, this status will be automatically validated by the system.
• Gross Turnover Records: Recapitulation of gross income (turnover) every month for one tax year.
• Income Tax Article 21 Withholding Slips (Bupot): Withholding slips from clients or employers (if any) who have withheld tax on your services. In Coretax, this data should be prepopulated (automatically filled).
• Assets and Liabilities Data: List of assets and liabilities as of the end of the tax year.
• Family Member List: For determining Non-Taxable Income (PTKP).

III. Step-by-Step Reporting Guide in Coretax

Here are the detailed steps for reporting the Annual Individual Income Tax Return for Independent Personal Services using the Recording (NPPN) method:

Step 1: Login and Creating Tax Return Draft

• Access Portal: Open portal.pajak.go.id or coretaxdjp.pajak.go.id.
• Login: Enter NIK (16 digits) or NPWP (15/16 digits), Password, and Security Code. Click "Login".
• SPT Module: On the main menu, select the Tax Return (SPT) module, then click the Tax Return (SPT) submenu.
• Create Draft: Click the "Create Tax Return Draft" (Buat Konsep SPT) button.
• Select Tax Type:
  • Select Individual Income Tax (PPh Orang Pribadi).
  • Select Tax Year (e.g., 2025).
  • SPT Status: Normal (if reporting for the first time).
  • Click Create.

Step 2: Header and Profile Filling

At this stage, you determine your tax calculation method.

• Bookkeeping/Recording Method: Select "Recording" (Pencatatan). This is mandatory for those using NPPN,.
• Source of Income: Select "Independent Personal Services" (Pekerjaan Bebas) from the dropdown menu. You can also select more than one source if applicable (e.g., "Employment" if you are also an employee).
• Identity: The system will display Section A (Taxpayer Identity). NIK, Name, and Address data will be prepopulated. Ensure the data is correct.

Step 3: Answering Wizard Questions (Attachment Determination)

Coretax uses an interactive system to display relevant attachments.

• Section B (Net Income Summary):
  • Question: "Do you have income from business or independent personal services?" -> Answer Yes.
  • Question: "Do you belong to Taxpayers with certain gross turnover (MSME)?" -> Answer No (Because professions like doctors/notaries do not fall under the PP 55 Final 0.5% scheme).
  • Question: "Do you use the Norm in calculating net income?" -> Answer Yes.
• System Validation: The system will automatically check if you have reported the NPPN notification at the beginning of the year. If valid, the system allows you to proceed.

Step 4: Filling Gross Turnover Attachment (L-3B)

You must fill in your monthly turnover details.

• Click Tab L-3B (Attachment 3B).
• Select Section C: Gross Turnover Recapitulation for Net Income Calculation Norm (NPPN) Users.
• Fill in the List of Place of Business Activities (TKU):
  • The system displays your business/practice locations.
  • Enter the Gross Turnover amount for each month (January to December).
  • Click "Save".

Step 5: Net Income Calculation (L-3A-4)

Once turnover is filled, you need to convert it to net income using the Norm percentage.

• Click Tab L-3A-4.
• Select Section A: Domestic Net Income from Business and/or Independent Personal Services.
• Click the "Edit" button (pencil icon).
• Search for the appropriate Independent Personal Service Type (KLU) (e.g., General Practitioner, Lawyer).
• The system will display the Norm Rate (%). Ensure the rate matches your location (Provincial Capital, Other Capital, or Other Areas).
• The system automatically calculates: Net Income = Gross Turnover x Norm Rate.
• Click "Save".

Step 6: Assets, Debt, and Family Attachment (L-1)

• Assets: Click Add, enter asset code (Savings, House, Car, Practice Equipment), acquisition year, and acquisition price.
• Debt: Enter the debt balance as of year-end.
• Family: Enter family members (Spouse, Children) for PTKP calculation.

Step 7: Main Form (Tax Calculation)

Return to the Main Form (Induk) tab for final calculation.

• Section B (Net Income): Ensure the net income figure from L-3A-4 has flowed in.
• Section C (Income Tax Calculation):
  • Fill in PTKP Status (e.g., K/1).
  • The system calculates Taxable Income (PKP).
  • The system calculates Tax Payable using the progressive rates of Article 17.
• Section D (Tax Credits):
  • Check Point 10a (Withheld by Others). If your clients have issued PPh 21 Withholding Slips, the data will appear automatically (prepopulated) here. If not, you can add it manually (click Add, fill in Withholder NPWP, Slip Number, Tax Value).
  • Check Point 10b (PPh 25 Installment). If you paid monthly PPh 25 installments, the total will appear here.
• Section E (Underpayment/Overpayment):
  • The system calculates the difference between Tax Payable and Tax Credits.
  • If Underpayment (Kurang Bayar - KB): The KB value will appear.
  • If Nil: Value 0.

Step 8: Payment and Submission

• If status is Underpayment:
  • Do not exit the page. Click the "Pay" button or generate a Billing Code directly in Coretax.
  • Make payment via Bank/Post/E-wallet.
  • The system will validate the payment in real-time (NTPN recorded).
• Declaration: Check the statement box "Fully aware of all consequences...".
• Submit: Click "Save Draft" then "Report".
• Signature: Enter Passphrase or DGT Authorization Code/Electronic Certificate.
• Download Electronic Receipt (BPE).

IV. Case Illustration: Doctor "dr. Santoso"

To clarify, let's look at dr. Santoso's case.

V. Conclusion

The Coretax system simplifies Independent Personal Service Taxpayer compliance by automating Norm calculations and prepopulating withholding slips from third parties. This feature reduces calculation errors and typos. The most important thing for professionals is disciplined monthly turnover recording and ensuring the Notification of NPPN Usage has been done at the beginning of the tax year. Without this notification, the system will assume you are using bookkeeping or apply a higher rate if audited. Also, ensure all withholding slips from clients are recorded in the system to avoid double taxation.