December 2023

Directorate General of Taxation (DGT) has introduced a new feature called the Standardization of Financial Statements Information (SFSI) in the Annual Tax Return reporting for businesses. Standardization of Financial Statements Information (SFSI) with the XBRL format is introduced in light of tax reform program, aiming to create organized and standardized financial reports. SFSI is a standardized financial reporting form that aligns with the Indonesia Stock Exchange’s categorization. SFSI includes three main components, financial statements form, fiscal adjustment forms, and profit/loss forms.

The reporting process for SFSI starts with taxpayers entering their financial information, identifying fiscal adjustments, and generating profits or losses statement using standard forms. Upon entering the data, a validation process takes place. Tax reporting is considered valid upon receipt of notification from the tax reporting system. The benefit for taxpayers is that the data they input is directly integrated into electronic forms (e-form), eliminating the hassle in filling out the e-form.

According to Decree No. 159/PJ/2022, the Directorate General of Taxation (DJP) initially has appointed 37 taxpayers from 10 registered Tax Service Offices (KPP) to carry out the initial implementation of reporting for the Annual Tax Return using the SFSI form. This feature is expected available for corporate taxpayers in various sectors, including general businesses, manufacturing, trade, services, banking or financial institutions, insurance agencies, pension funds, and even infrastructure and real estate.

This publication is intended for general information only and should not be interpreted as substitute to any of  our professional advices. All of information contained in this publication refers to the featured regulation as per the date of this publication.