Often we hear the term withholding tax or a tax withholding system in which the government will give trust to taxpayers to carry out the obligation to withhold or collect taxes on the income paid. Income tax article 21 is one type of withholding tax object that must be paid annually.
After making a payment on the withholding tax, the tax that has been withheld or collected and has been deposited into the state treasury can be a tax deduction or credit for the party withheld if it attaches proof of withholding or collection so that it is not too burdensome for taxpayers in the following years. will come when paying.
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Apart from income tax article 21, what are the withholding taxes that we should recognize as objects of tax that must be paid? How to pay withholding tax so that we can get a deduction at the end of the year? Through this article, we will provide answers to your questions so that later you can find a bright spot and find out about withholding taxes.
Also Read : Income Tax Article 23 and the Tax Amount
Getting to Know Article 21 Income Tax As Withholding Tax and Also Some Other Income Tax Payment Objects
1. Withholding Income Tax (PPh) 21 for Employees in Your Company
The first on the list is the type of withholding income tax 21 or PPh 21. Article 21 income tax is a tax withheld from income related to work, services, and activities carried out by domestic individual taxpayers in the form of salaries, wages, honorarium, or other similar income that is subject to tax.
The withholding of income tax article 21 is those who are parties to providing income to domestic individual taxpayers in related work. For example, when there is a company that employs workers, they will later deduct the salaries received by employees to serve as the withholding tax.
2. Withholding Income Tax (PPh) 22 for Employees in Your Company
Withholding income tax for this type is imposed on those who carry out trading businesses such as importing, exporting, or re-importing luxury goods. These PPh 22 collectors are government treasurers related to payments for certain goods and corporate taxpayers related to buyer payments for the sale of luxury goods.
3. Withholding Income Tax (PPh) 26 for Employees in Your Company
In addition to income tax article 21 and withholding income tax 22, there are also income tax cuts 26 that we can use as a withholding tax. This type of tax is a tax withheld from the income of a foreign taxpayer on income that does not come from running a business or activity through a BUT whose source is from Indonesia.
Article 21 Income Tax Deductions Must Be Provided for Several Related Parties That Have Been Determined In The Law
You need to know that the withholding of Article 21 Income Tax on income that is still related to work, services, or activities in any name and form and must be given by an individual taxpayer in the country is already regulated in the legislation and must be carried out by those mentioned. as follows:
- Employers who pay salaries, wages, honorarium, allowances, and other payments as compensation in connection with work performed by employees or non-employees;
- Government treasurer who pays salaries, wages, honorarium, allowances, and other payments in connection with work, services, or activities;
- Pension funds or other entities that pay pensions and other payments under any name in the context of pensions;
- Agency that pays honorarium or other payments as compensation in connection with services, including the services of experts who perform independent work; and
- Activities organizers who make payments in connection with the implementation of an activity.
Representative offices of foreign countries and international organizations that are employers who are required to deduct income tax article 21 as mentioned above are not included. Later, the company will be included in the category of withholding income tax article 26 or income tax article 26, hereinafter referred to as PPh 26. Income for permanent employees or retirees that is deducted by tax for each month is the total gross income after deducting office fees or pension costs, the amount of which is determined by the Regulation of the Minister of Finance, pension contributions, and Non-Taxable Income (PTKP).
Then, for daily, weekly and non-permanent employees, income tax article 21 will be deducted through the gross income after deducting the portion of income that is not subject to deductions, the amount of which has been determined by the Regulation of the Minister of Finance at the rates referred to in the Articles of Income Tax Law. 17.
Consulting Tax Indonesia? Contact Whatsapp +62 877-7180-0222
Confused with Article 21 Income Tax Withholding Management for Your Employees? Don’t Worry, You Can Only Use Tax Consultant Services!
1. Reasons why it is important to use the services of a tax consultant for large companies with your foreign employees
Several companies are often mistaken about tax cuts for their employees, this of course can be a fatal mistake that will harm the company. You have to be careful with this and if you don’t want to bother, you can use the services of a tax consultant to withhold PPh 21 for your foreign employees correctly and carefully, of course.
2. Offers a variety of tax or accounting consulting services that are of course ready to help anytime
Tax consultant services can not only help you take care of withholding income tax article 21 for your employees, but also have other tax or accounting consulting services that you can use to facilitate your company in managing financial allocations and also the circulation of money so that it does not only run out in tax expenditures. and the salary of your employees only.
The companies that provide tax consulting services will also help you to analyze the company’s finances and audit them so that they have a healthy money cycle and no deficit of course. So, you can feel safe with paying your employees salaries and completing various other tasks that are felt to be urgent and important.
Also Read : Tax Income Indonesia: Legal Basis, Actors and Object
Looking for Tax Consultant Services for Income Tax Article 21 Withholding? We from Proconsultoffiical.com are ready to help you!
We from Proconsultofficial.com are ready to provide consultation for your company regarding the withholding of income tax article 21 and also other tax consultations related to what you currently need in the company. Just contact us on the web page and we are ready to provide the most optimal and quality service for your business development.