Depok-The 2024 Annual Tax Return Reporting has been opened by the Directorate General of Taxes (DJP) of the Ministry of Finance of the Republic of Indonesia since January 2025. Reporting of the Annual Tax Return is recommended on time to avoid fines and reprimands from the tax authorities. The reporting of the 2024 Annual Tax Return for Individual Taxpayers (WP) must be done no later than March 31, 2025, while for Corporate Taxpayers the latest is April 30, 2025 through the official DJP website at pajak.go.id. When filling out the Annual Tax Return form, WP will find the deductible and non-deductible expense columns.
Expense is a cost in the context of taxation referring to expenses that can be deducted from gross income to calculate taxable income. Expense in taxation has two main pillars, namely deductible and non-deductible. Deductible expense refers to various costs that can be deducted from tax calculations as a reduction in the Annual Corporate Income Tax Return. Meanwhile, non-deductible expense refers to costs that cannot be used as a tax deduction in calculating gross income. This was conveyed by Gary Yosua Aditya, Tax & Advisory Partner at PRAS Inc, at a guest lecture activity in the Tax Administration study program, Vocational Education Program, Universitas Indonesia (UI) on February 24, 2025.
(Photo: Gary explains the difference between deductible and non-deductible expenses)
Gary explained that there are three main principles in determining whether a cost can be categorized as a deductible expense. “The three principles are that the cost is directly related to business activities, the expenditure is intended to obtain income that is the object of tax and the costs incurred are not for someone’s personal interests,” Gary explained.
Gary explained the various types of costs that include deductible expenses and non-deductible expenses. According to him, determining the types of costs needs to be studied in depth so that the identification of tax calculations is precise and concrete. On that occasion, Gary also provided a number of case studies to students to make correct tax calculations.
Head of the Tax Administration Study Program, Thesa Adi Purwanto, S.Sos., M.T.I., said that this guest lecture aims to provide students with direct experience from practitioners in the tax industry. “I hope students will get new explanations and insights according to industry needs. Especially in calculating various taxes as the main competency of graduates of the Tax Administration study program,” concluded Thesa.
