When filing your Annual Individual Income Tax Return (SPT Tahunan Orang Pribadi) through Coretax, the system generally uses two input methods: Prepopulated: Data is automatically filled in by the system Key-in: Data is manually entered by the taxpayer
In Appendix I Section D (Other Domestic Income), you may find income data that appears automatically (prepopulated). One possible source of this data is a withholding slip (bukti potong) issued by the income payer—including, in certain cases, when you receive cashback.
Why Can Cashback Appear Automatically in Coretax?
According to the Directorate General of Taxes (DGT), income will automatically appear in your tax return through Coretax if:
- It qualifies as an object of Income Tax (PPh), and
- The income payer issues an official withholding slip in accordance with tax regulations.
This means Coretax displays data based on officially issued withholding slips. If any information appears incorrect, the best course of action is to confirm directly with the party that issued the withholding slip.
When Is Cashback Subject to Income Tax?
The DGT explains that cashback may be considered income if it increases the recipient’s economic capacity. In such cases, cashback can be treated as an object of Article 21 Income Tax (PPh 21) and may be subject to withholding by the cashback provider.
Below are two common types of cashback that may fall under PPh 21:
1) Cashback as a Prize or Reward
Cashback is taxable if it is granted to specific individuals under certain conditions and has economic value that increases the recipient’s income.
2) Affiliate Commission Cashback
Cashback or compensation earned from marketplace affiliate programs is generally treated as commission income. The organizer may withhold PPh 21 upon payment.
When Is Cashback Not Taxable?
Cashback is not subject to tax when it functions as a regular price discount, such as:
- A direct price reduction available to all buyers
- Part of a general marketing strategy (not a prize, reward, or commission)
- Does not qualify as additional income
In these cases, cashback is not considered income and should not result in the issuance of a withholding slip.
What Should You Do If You Receive a Withholding Slip for Cashback?
To ensure accurate and compliant tax reporting, take the following steps:
✅ 1. Identify the type of cashback received
- Is it a prize or reward?
- Is it an affiliate commission?
- Or simply a regular discount?
✅ 2. Verify the withholding slip details
Ensure your name, Tax ID (NPWP/NIK), tax period, income amount, and tax withheld are correct.
✅ 3. Contact the issuer if discrepancies arise
Request clarification, correction, or amendment if necessary. Accurate verification will help you avoid reporting errors and ensure your Annual Tax Return reflects the correct tax treatment.