Taxpayers with Taxpayer Identification Number are required to report their annual Income Tax Return (ITR). The deadline for reporting the annual ITR for Individual Taxpayers is 3 months after the end of the fiscal year. Meanwhile, the deadline for reporting the annual ITR for corporation is no later than 4 months after the end of the fiscal year.

If annual ITR is reported late, there will be sanctions in the form of fines and penalties that will be imposed on the Taxpayer. Taxpayers who are late or do not report their annual ITR will be subject to a certain amount of fine, as regulated in Article 7 of General Tax Provisions and Procedures Law. For individual Taxpayers, the fine is IDR100,000 (one thousand rupiah). Meanwhilethe fine is greater for corporate taxpayers, namely IDR1,000,000 (one million rupiah). The fine is paid if the Taxpayer has received Tax Collection Letter (Surat Tagihan Pajak or STP).

Reported from kompas.com, besides fines, there are criminal sanctions that threaten those who intentionally do not report their ITR or report ITR with incorrect entries. "There is a law that also stipulates that criminal sanction can be imposed if it is proven that they intentionally did not report ITR, or reported ITR but the contents were incorrect or Taxpayers intentionally did not report their income, or were incomplete." Said Neilmadrin Noor, Director of Extension, Services and Public Relations of the Directorate General of Taxes (DGT).

This is in accordance with Article 38 of General Tax Provisions and Procedures Law regarding the criminal provisions for Taxpayers who do not submit their ITR due to negligence or submit their ITR with incorrect or incomplete content. A fine of at least 1 time the amount of unpaid or underpaid tax payable and a maximum of 2 times the unpaid or underpaid tax payable, or a minimum imprisonment of 3 months or a maximum of 1 year.