Tax Income Indonesia is a term for the income tax of the Indonesian people, this income tax itself is a tax imposed on the object of income as stated in the Income Tax Law. Income tax is also known as PPh where this tax is imposed either on a corporate entity or an individual.
Of course, the tax imposed is the tax earned in the annual tax period. Well, the income in question can be in the form of profits obtained from business, honoraria, salaries, bonuses, wages, allowances, commissions, gratuities, pensions, or even gifts received.
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Well, for those of you who don’t understand Tax Income Indonesia, we provide tax consulting services which can help to become partners/partners in Indonesia’s tax management. So don’t worry about every process, you can directly visit the website from https://proconsultofficial.com/ for further information.
Also Read : Income Tax Article 23 and the Tax Amount
Legal Basis Used For Tax Income Indonesia
As explained above if the income tax is already regulated in the Act. The legal basis itself is in Law Number 7 of 1983 concerning Income Tax. However, now, there is a new provision regarding the Income Tax Law because it has been refined again in Law Number 11 of 2020 concerning Job Creation.
In addition, in article 17 paragraph (1) of the HPP Law, it is stated that the number of tax rates currently applicable to taxpayers specifically for domestic individuals is as follows:
- Subject to 5% if annual income earns IDR 60,000,000.
- Subject to 15% if the annual income is above IDR 60,000,000 up to IDR 250,000,000.
- Subject to 25% if the annual income is above IDR 250,000,000 to IDR 500,000,000.
- Subject to 30% if the annual income is above IDR 500,000,000 to IDR 5,000,000,000.
- 35% is charged if the annual income is above IDR 5,000,000,000.
- A much higher rate is imposed if the taxpayer does not have an NNPWP.
Indonesia’s Tax Income deposit is no later than the 10th of the following month after which the tax period should have ended. As for the payment itself, no later than the 15th of the following month after the tax period ends. PPh payments can now also be done in the easiest way, which is paid online.
Tax Income Indonesia Actors
You must be wondering who is the perpetrator of Tax Income Indonesia, right? Well, everything is stated in Law No. 36 of 2008 where the tax subjects are stated as follows:
1. Personal Tax Subject
The first Tax Income Indonesia actors are individuals who reside in Indonesia for more than 183 days and for a long period, which is 12 months. In addition, it also applies to individuals who within one year of their ojaksanya in the State of Indonesia and also have the intention to settle or reside in the State of Indonesia.
2. Undistributed Inheritance Tax Subject
The subject of this inheritance tax is special if the inheritance obtained has not been divided. Of course, this inheritance comes from people who have died but still get income. Well, that income will be subject to income tax. For that, it would be nice for you to consult immediately if you get a problem like this.
3. Property Tax Subject of an Entity
The next Tax Income Indonesia perpetrator is the subject of corporate piracy, the agency referred to here is an entity domiciled in the State of Indonesia, except for certain units located in government agencies according to the criteria where their formation is based on the provisions and laws and regulations and payments are by the regulations. STATE BUDGET.
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Not Tax Income Indonesia Actors
If previously we discussed who the perpetrators of the PPh are obliged to do, then you also have to know who is not the subject of the PPh tax. Of course, everything has been stated in Law No. 17 of 2000 which:
- Representative Body of Foreign Countries in Indonesia
- Officials who represent diplomatic and consulates or other officials who come from foreign countries, as well as people who are needed to work and live with them, this applies if they are not Indonesian citizens and also the country concerned provides treatment reciprocal.
- Non-Tax Income Indonesia actors are international organizations that have been determined according to a decision from the Minister of Finance following the condition that the Indonesian State can participate in organizing the organization and also the organization does not carry out a business activity in Indonesian State.
- Representative officials from international organizations currently residing in the State of Indonesia, this official has been appointed by the decision of the Minister of Finance on the condition that he is not an Indonesian citizen and also does not earn any income from the State of Indonesia.
Also Read : Non Taxable Income Indonesia and Distribution Rules
Tax Income Indonesia Object
Now, talking about the object of Tax Income Indonesia, it is PPh 25 where the object of this PPh 25 tax includes additional economic value received or even.
Obtained by the taxpayer for consumption, it could also be to increase wealth for the taxpayer concerned. So here the tax object itself can come from anywhere, even from outside Indonesia.
While the calculation, the object of the PPh 25 tax is calculated in one year. If within one year the taxpayer suffers a loss, then the tax that must be paid will be compensated with other income unless the loss occurs abroad. However, if the income has a separate tax rate or there are exceptions in the income tax, then if the taxpayer suffers a loss, it cannot be compensated for with other income which has a general tax rate.
Well, that’s the review of Tax Income Indonesia starting from the understanding, legal basis, taxpayers, not taxpayers, to the tax object of Tax Income Indonesia itself. Some of the information provided above is expected to broaden your horizons regarding Tax Income Indonesia.
Because by knowing as clearly as possible about Indonesia’s Tax Income, you will be able to understand who the perpetrators are who have obligations as taxpayers, and how to calculate the taxpayers who are charged. With this, you can also minimize the level of possibility that occurs due to friction in salaries and wages received.
You can directly consult the tax bureau listed above to ensure your understanding, even in calculating tax costs you can also directly consult because all information about Tax Income Indonesia can immediately find answered by tax experts who are there. Contact us immediately and visit our web page at Proconsultofficial.com and get the best financial consulting services for companies.