Saturday, July 31, 2010

Income Tax for Interest, Savings Deposit and Discount SBI

Understanding

  • Interest on deposits and savings and discounts Bank Indonesia Certificates (SBI), subject to income tax (income tax) which are final.
  • Includes interest received or accrued from deposits and savings deposits placed in banks abroad through established or domiciled in Indonesia or overseas bank branches in Indonesia.

Objects and Tariff
Interest on deposits and savings and discounts subject to final income tax for SBI:

  1. 20% (twenty percent) of the gross amount, against domestic taxpayers and permanent establishments (PE).
  2. 20% (twenty percent) of the gross amount or a rate based on Double Taxation Avoidance Agreement applicable to taxpayers abroad.

Withold Tax
Tax witholding and savings deposit interest and discount are:

  • Interest Paying Bank;
  • Pension Fund which was approved by the Minister of Finance and the Bank is to sell back Bl certificates (SBI) to other parties who are not pension funds the establishment of which has not been approved by the Minister of Finance and not the banks are required to collect tax or discount SBI.

Exempt from Income Tax Withholding

  • Total deposits and savings accounts, and SBI does not exceed Rp 7.5 million (seven million five hundred thousand rupiah) and not an amount that was split burst.
  • Interest and discount derived by a bank incorporated in Indonesia or overseas bank branches in Indonesia.
  • Interest on time deposits and savings and discounts received or accrued SBI Pension Fund which establishment was approved by the Ministry of Finance over the funds derived from revenue sources referred to in Article 29 of Law 11 of 1992 on Pension Fund, provided by the Free Certificate (LCS), issued by the Tax Office where registered pension fund.
  • Interest savings in a bank appointed by the Government in the framework of ownership Simple House and Very Simple; lots ready to build for Simple House and The Flats Very Simple or Simple accordance with applicable regulations, to live alone. The provisions of sections 3 and 4 shall be further regulated by Decree of the Minister concerned.

Misc:
An individual subject to tax in the entire country in one year for income taxes, including interest and discount does not exceed the non-taxable income, the tax has been withheld, may apply for a refund (refund).

Friday, July 30, 2010

Income Tax Article 26

Understanding
Income Tax Article 26 is imposed from Pengahsilan tax income derived from Indonesia received or accrued by the taxpayer (WP) in addition to foreign permanent establishment (PE) in Indonesia.

who picked Article 26?
- Government;
- The subject of domestic tax;
- Organizers of activity;
- Fixed entity BUT;
- Representatives of foreign companies in Indonesia other than PE.

Income Tax Rates and object of Article 26

  1. 20% (final) of the total gross income received or accrued from the State Tax Payer:
    a.dividen;
    b.bunga, premiums, discounts, swap premiums, and benefits relating to the guarantees of loan repayments;
    c. royalties, rents, and miscellaneous income in connection with the use of property;
    d. benefits relating to services, employment, and activities;
    e. prizes and awards
    f. pensions and other periodic payments.
  2. 20% (final) from the net income estimate of:
    a. Income from property sales in Indonesia;
    b. insurance premiums are paid reinsurance premiums, directly or through brokers to insurance companies abroad.
  3. 20% (final) from the Taxable Income after deduction of tax from a PE in Indonesia, except that income reinvested in Indonesian.
  4. Rates based on Double Taxation Avoidance Agreement (P3B) between Indonesia and the countries parties to the agreement.

When payable, How to Withholding, Deposit, and Article 26 Tax Income Tax Return

  1. Article 26 Income tax payable at the end of the month or late payment of income become due, depending on whichever comes first.
  2. Tax collectors Article 26 shall make proof of withholding income tax under Article 26 copies of 3:
    - The first sheet for foreign taxpayers;
    - The second sheet for Tax Services Office;
    - The third sheet cutters for archives.
  3. Income tax under Article 26 shall be deposited into a bank or Post Office Perception using the Tax Payment (SSP), no later than December 10 next calendar month after the month when the taxes become due.
  4. Tax Income Tax Return Article 26, with a second sheet attached with SSP, collecting evidence of the second sheet and a list of collected evidence submitted to the local Tax Office not later than 20 days after the Tax Period ending.

Exception

  1. BUT exempted from withholding income tax of Article 26 if the Taxable Income after deduction of Income Tax BUT reinvested in Indonesia with the following requirements:
    a. conducted in the form of capital investment in the company established and domiciled in Indonesia as a founder or founding participant, and;
    b. conducted in the year or next fiscal year selambatlambatnya from fiscal year received or accrued by such income;
    c. do not replant the transfer of at least 2 (two) years after the company where the planting done, began commercial production.
  2. International agencies appointed by the Minister of Finance.

Thursday, July 29, 2010

Income tax Article 23

Understanding
Income Tax Article 23 is the tax levied on income derived from capital, delivery services, or prizes and awards, other than those already levied tax of Article 21.

Collectors, and Recipients withheld Income Tax Article 23

1. Collector of Income Tax Article 23:

  • government agencies;
  • Domestic corporate taxpayers;
  • Organizing activities;
  • Permanent establishment (PE);
  • Representatives of other foreign companies;
  • An individual taxpayer in a particular country, which is appointed by the Director General of Taxation.

2. Recipient's income withholding Tax Article 23:

  • Taxpayer in the country;
  • Permanent Establishment

Income Tax Rates and object of Article 23 subject to income tax of 2% (two percent) of the gross amount and does not include Value Added Tax for which tax has identity, and 4% for who did not have a Tax ID


When payable, the Deposit, and Article 23 Tax Income Tax Return?

  • Article 23 Income tax payable at the end of the month or late payment of the relevant income become due, depending on events that occurred first.
  • Article 23 Income tax paid by the Tax Cutter ten months later than the date of the next calendar year after the month when the tax payable.
  • The tax return filed to the local tax office, not later than 20 days after the Tax Period ending.

Evidence Cutting Tax Article 23
Tax collectors must provide evidence Pungut Tax Article 23 to the individual taxpayer or a company that has been levied income tax Article 23.

Wednesday, July 28, 2010

Procedures for Withholding, depositing, and reporting of Income Tax Article 22

Procedures for Withholding, depositing, and reporting of Income Tax Article 22

  1. Tax Article 22 on the import of goods (number II, sub 1) paid by the importer using Tax Deposit form, Excise and Customs (SSPCP). Tax Article 22 on the import of goods collected by the Excise should be paid to the perception or the Post Office Bank and Giro in period of 1 (one) day after the youth ngutan income and reported to the Tax Office on a weekly basis no later than 7 (seven) days after the deadline expired tax deposit.
  2. Tax Article 22 for the purchase of goods (number II sub 2 and 3) paid by the collector on behalf of taxpayers and tax ID number or Post Office Bank Perception and Giro collectively on the same day with the implementation of the payment for goods delivered. Published a proof of withholding tax collector in triplicate, ie:
    - The first sheet to the buyer;
    - Second sheet as an attachment to a monthly report to the Tax Office;
    - The third sheet for filing tax collector is concerned, and reported to the Tax Office not later than 14 (fourteen) days after the fiscal period ended.
  3. Tax Article 22 for the purchase of goods (number II sub 4) paid by the collector on behalf of the taxpayer to the bank or Post Office Perception and Demand at the latest on 10 (ten) months of the next calendar year by using CNS and submit tax return forms to the KPP period at the latest 20 (twenty) days after the fiscal period ended.
  4. Tax Article 22 on sales of manufactured products (figures II, sub 5 and 7) paid by the collector on behalf of taxpayers to the bank or Post Office Perception and Demand at the latest on 10 (ten) months of the next calendar year using the form CNS. Early collectors submit returns to the KPP at the latest 20 (twenty) days after the fiscal period ended.
  5. Tax Article 22 on the sale of production (number II sub 6) paid by the taxpayer to the bank or Post Office Perception and Giro before Expenditures Instruction Letter (delivery order) are redeemed by using CNS. Collector must issue proof of income tax collection Ps. 22 copies of three, namely:
    - The first sheet to the buyer;
    - Second sheet as an attachment to a monthly report to the Tax Office;
    - The third sheet for filing tax collector concerned.
    Reporting is done by SPT term to convey the latest local KPP 20 (twenty) days after the Tax Period ending.

Tuesday, July 27, 2010

Withholding Tax Exemption of Article 22

  • Imports of goods and / or delivery of goods under the provisions of legislation do not owe income tax, declared by the Free Certificate (LCS).
  • Imports of goods exempted from import duty and / or Value Added Tax; carried out by the Excise.
  • Temporary import for re-export, and executed by the Director General of BC.
  • Payment for goods purchased by the government that the amount of at most Rp. 1.000.000, - (one million rupiah) and does not constitute a fragmented payment.
  • Payment for the purchase of fuel oil, electricity, gas, water / PDAM postage.
  • Gold bars which will be processed to produce gold jewelry for export purposes, otherwise the LCS.
  • Payment / Social Safety Net disbursement by the Office of the State Treasury.
  • Import re-(re-imports) that meet the conditions stipulated by the Excise.
  • Payment for purchase of paddy and rice or Bulog.

Income Tax Article 22

I. Understanding Income Tax Article 22
Income Tax Income Tax Article 22 is collected by:

  1. Treasurers Central Government / Local Government, government institutions and other state institutions, with regard to payment for goods delivered;
  2. Certain agencies, both governmental and private agencies with respect to activities in the field of import or other business activities.

II. The object of collectors & Tax Article 22

  1. Foreign Exchange Bank and the Directorate General of Customs and Excise (Excise), of the imported goods;
  2. Directorate General of Budget (DJA), Treasurer of the Central Government / Local Government make a payment for goods purchased;
  3. Enterprises who make purchases of goods with funds sourced from state spending (APBN) and / or shopping areas (budget);
  4. Bank Indonesia (BI), Bank Restructuring Agency (IBRA), National Logistics Agency (Bulog), PT. Telekomunikasi Indonesia (Telkom), PT. State Electricity Company (PLN), PT. Garuda Indonesia, Indosat, PT. Krakatau Steel, Pertamina and state-owned banks who make purchases of goods funded either from the state budget and from non state budget;
  5. Cement, white cigarette industry, paper industry, steel industry and automotive industry, which is appointed by the Head of the Tax Office, the sale of their products in the country;
  6. Pertamina and other business entities which are engaged in fuel type pertamax, pertamax plus and gas, the sale of their products.
  7. Manufacture and exporter of forestry, plantation, agriculture, and fisheries, which is appointed by the Head of the Tax Office, to purchase materials for industrial purposes or export them from middlemen.

III. Article 22 Income Tax Rate

  1. Imports:
    a. that use Importer Identity Number (API), 2.5% (two and a half percent) of the value of imports;
    b. who did not use the API, 7.5% (seven and a half percent) of the value of imports;
    c. that are not controlled, 7.5% (seven and a half percent) of the auction sale price.
  2. Purchases of goods made by the Directorate General of Budget, the Government Treasurers, state-owned enterprises (number II, para 2.3, and 4) amounted to 1.5% (one half of one percent) of the purchase price and are not final.
  3. Product sales (figures II, para 5) will be determined based on the decision of the Director General of Tax, namely:
    - Paper = 0.1% x DPP VAT (Not Final)
    - Cement = 0.25% x DPP VAT (Not Final)
    - Steel = 0.3% x DPP VAT (Not Final)
    - Cigarettes = 0.15% x Price bandrol (Final)
    - Automotive = 0.45% x DPP VAT (Not Final)

Sunday, July 25, 2010

Income Tax Article 21 (part 2)

6. Excluding the income tax cut of Article 21 are:

  • insurance payments from the company's health insurance, accident insurance, life insurance, endowment insurance, and scholarship insurance;
  • receipts in kind and enjoyment in any form provided by the taxpayer or the Government, not the exception granted by the Government other than the taxpayer or the taxpayer who is subject to final income tax and income tax imposed by a special calculating norms (deemed profit).
  • pension contributions paid to pension funds that establishment has been approved by the Minister of Finance and Old Age Security contributions to the body administering Social Security paid by the employer,
  • alms received by an individual who has the right of the agency or institution of Zakat established or approved by the Government.
  • scholarships that meet certain requirements (PSL 3 (1) Income Tax Act). Provisions are set further in the Regulation of the Minister of Finance No. 246/PMK.03/2008


Everything Else

  1. Tax cutters are required to provide evidence of Withholding Tax Article 21 whether requested or not at the time of tax cuts to an individual not as a permanent employee, a recipient of the ransom money pensions, Old Age Security recipients, receiving severance pay, and pension fund beneficiaries.
  2. Tax cutters Tax Article 21 withholding required to provide proof of annual income tax of Article 21 (form 1721 or 1721-A1-A2) to the employees and equipment, including a monthly pension recipients within 2 (two) months after the calendar year ends.
  3. If a permanent employee to stop working or retired in the calendar year, the withholding evidence (form 1721 or 1721-A1-A2) is given by the employer not later than one month after the relevant employees to stop work or retire.
  4. Income recipients are required to submit a statement to the Tax Cutting Tax Article 21 which states the number of family at the beginning of the calendar year or at the beginning of a tax subject in the country.

Calculation of Income Tax Article 21

Rates and Its Application

  1. A permanent employee, the recipient of a monthly pension, temporary employees, interns and prospective employees and distributors MLM / direct selling and similar activities, subject to tariffs of Article 17 Income Tax Act multiplied by the Taxable Income (PKP). PKP is calculated based on the following:
    - Employees and Equipment; gross income minus the cost of office (5% of gross income, a maximum of Rp 6,000,000, - a year or Rp 500,000, - (per month); reduced pension contributions. Pension contributions, less tax free (PTKP) .
    - Monthly Pension Recipients; gross income minus pension costs (5% of gross income, a maximum of USD 2.4 million, - a year or Rp 200,000, - per month); reduced PTKP.
    - Employees are not fixed, interns, prospective employees: gross income minus PTKP received or accrued to an annualized amount.
    - Distributor of Multi Level Marketing / direct selling and similar activities; monthly gross income minus monthly PTKP.

  2. Recipient of honoraria, allowances, prizes or awards, commissions, scholarships, and other payments as compensation for services and activities which amount is not calculated on the basis of number of days required to complete the services or activities; former employees who receive production services, bonuses, gratuities , bonus, pension plan participants who pulled their funds on retirement funds; charged under Article 17 of Law multiplied by the gross income tax

  3. Experts who conduct independent work (lawyers, accountants, architects, doctors, consultants, notaries, appraisers and actuaries) PPh tariff is 17 x 50% of the estimated gross income - monthly PTKP

  4. Employees daily, weekly employees, interns, and prospective employees, and other temporary employees who receive daily wages, weekly wages, unit wage, piece rate and a daily allowance exceeding the amount of 150,000 a day in one calendar month but the amount does not exceed USD . 1.32 million, - and whether or not the monthly pay, the outstanding income tax Article 21 in one day is to apply the rate of 5% of gross income after deducting USD. 150 000. If within one calendar month in excess Rp.1.320.000, - a month, then the amount that can be deducted PTKP for one day is in accordance with the actual number of recipients PTKP the related income divided by 360.

  5. Recipients of severance pay, pension redemption, Old Age Allowance or Old Age Security is paid at once subject to final income tax rates as follows:
    - 5% of gross income above Rp 25 million sd Rp. 50 million.
    - 10% of gross income above Rp. 50 million s.d. Rp. 100 million.
    - 15% of gross income above Rp. S.d.Rp. 100 000 000 200 million.
    - 25% of gross income above Rp. 200 million.
    Gross income up to Rp. 25.000.000, - are exempt from withholding tax.

  6. State officials, civil servants, members of the TNI / police who receive honoraria and other benefits that the source of the funds derived from State Finance or Regional Finance income tax cut Ps. 21 at the rate of 15% of gross income and shall be final, except those paid to civil servants Gol. Lid down, members of the TNI / Police Peltu down / Adjunct Insp. / Level I Go to bottom.

  7. PTKP (non taxable income) are:

    1.Self-Personal Tax Taxpayers one year Rp. 15.84 million

    2. Supplement for married taxpayers one year Rp. 1.32 million, -

    3. In addition to a wife whose income combined with the husband's income. one yearRp. 15.84 million, -

    4. Supplement for each member of the descendants of blood relatives by marriage in a straight line of descent and the adopted child who is fully diatnggung, a maximum of three people for each family one year Rp. 1.32 million, -

  8. Tariff Section 17 of Income Tax Act are:

    Taxable Income Tax Rates

    Up to Rp. 50.000.000, -tariff 5%

    Above Rp. 50.000.000, - to Rp. 250.000.000, - tariff 15%

    Above Rp. 250 000 000, - to Rp. 500.000.000, - tariff 25%

    Above Rp. 500.000.000, - tariff 30%

Saturday, July 24, 2010

Income Tax Article 21 (Part 1)

1. Income Tax Article 21
is a tax on income in the form of salaries, wages, honoraria, allowances, and other payments received or accrued by an individual taxpayer in the country in connection with a job or position, services, and activities.

2. Article 21 Income tax cutters
a. Employers of individuals and entities.
b. Treasurer of both central and local government
c. Pension funds or other bodies such as Social Security Workers (Social Security), PT Taspen, PT ASABRI.
d. The Company and its permanent establishment.
e. Personal conducting business or work freely.
f. Event organizers.

3. Recipient's income withholding tax of Article 21
a. A permanent employee.
b. Freelancers (artists, athletes, preachers, service providers, project managers, race participants, personnel outside insurance agency), the distributor MLM / Direct Selling and similar activities.
c. Pension recipients, former employees, including individual or his heirs who receive Old Age Savings or Old Age Security.
d. Honorarium recipient.
e. Wage earners.
f. Professionals (Lawyers, Accountants, Architects, Doctors, Consultants, Notary, Appraisers and Actuaries).
g. Participant Activities.

4. Recipients are not deductible for Income Tax Article 21
a. Diplomatic representatives and consular officials or other officials from foreign countries, and those seconded to those who worked on and resides with them, provided that:
- Not a citizen of Indonesia and
- In Indonesia does not receive or earn other position or a job outside the country concerned and provide reciprocal treatment;

b. The official representatives of international organizations established by the Decree of the Minister of Finance along is not a citizen of Indonesia and not conducting business or activity or other work to earn a livelihood in Indonesia.

5. Withholding income tax of Article 21 are:
a. income received or accrued by an employee or a regular pension recipients in the form of salary,
monthly pensions, wages, honoraria (including honoraria by the commissioners or members of the board of trustees), monthly premiums, overtime pay, dole, waiting for money, compensation, benefits, wife, child allowances, allowances for overpriced, office allowances, special allowances, transpot allowances, tax allowances, pension benefits, children's education allowances, scholarships, insurance premiums paid by employers, and other regular income by any name;
b. income received or accrued by employees, former employees receiving retirement or irregularly in the form of production services, bonuses, gratuities, leave allowances, holiday allowances, allowances for the new year, bonuses, annual premiums, and other similar income who are not permanent;
c. daily wages, weekly wages, unit wage and piece rate received or obtained by temporary employees or freelance workers, as well as pocket money daily or weekly participants received education, training or apprenticeship which is a candidate for officer
d. ransom retirement, saving for old age or Old Age Security, severance pay and other similar payments in connection with termination of employment;
e. honorarium, allowance, gift or award with the name and in whatever form, commissions, scholarships, and other payments as benefits relating to employment, services, and activities undertaken by individual taxpayers in the country, consisting of:
1. professionals (Lawyers, Accountants, Architects, Doctors, Consultants, Notary, Appraisers, and Actuaries)
2. musicians, emcee, singer, comedian, movie star, the star of soap operas, commercials, director, film crew, photo model, the player plays, dancers, sculptors, painters and other artists;
3. atlhet;
4. advisers, teachers, coaches, preachers, counselors, and the moderator;
5. author, researcher, and translator;
6. service providers in all areas including engineering, computer and application systems, telecommunications, electronics, photography, economic and social;
7. advertising agencies;
8. supervisors, project managers, members and providers of services to a committee, and participants of the hearing or meeting;
9. bearer of the order or who finds a subscription;
10. participants of the race;
11. official merchandise vendors;
12. foreign service officers insurance;
13. participant education, training and apprenticeship are not employed or not as a prospective employee;
14. multilevel marketing companies or distributors of direct selling and other similar activities.
f. Wages, salaries of honor, other benefits related to salary and remuneration or other benefits received are not fixed by the State Officers, Civil Servants and pensions and other benefits that are related to pensions received by retirees including widow or widower and / or their children.

Friday, July 23, 2010

Income Tax Object

Is the income which is any additional economic capability received or accrued by the taxpayer (WP), whether sourced from Indonesia and outside Indonesia, that can be used for consumption or to increase the wealth of taxpayers who are concerned with the name and in whatever form, including:

  • Reimbursement or remuneration related to employment or services received or accrued, including salaries, allowances, honoraria, commissions, bonus, gratuity, pension or other benefits in the form unless otherwise stipulated in the Income Tax Act;
  • Prize from the lottery or work or activities and awards;
  • Operating income;

  • Gains from the sale or transfer of property including:
    - Gains from transfer of property to the company, partnerships, and other agencies in lieu of shares or capital investment; - Corporate profits, partnerships, and other agencies for the transfer of property to shareholders, partners or members;
    - Gains from the liquidation, merger, consolidation, expansion, or acquisition of business solutions;
    - Gains from transfer of property in the form of grants, aid or donation, except that given to blood relatives in a straight line of one degree, and religious bodies or agencies or educational charities or small businesses, including cooperatives established by the Minister of Finance, as long as there is no relationship business, occupation, ownership or control between the parties concerned;
  • Claim back tax payments as an expense;
  • Interest, including premiums, discounts and benefits for a guarantee of debt;
  • Dividen by name and in whatever form, including dividends from insurance companies to policyholders and distribution of cooperative business;
  • Royalties;
  • Rental and other income in connection with the use of property;
  • Receiving or obtaining periodic payments;
  • Profit due to debt relief, except to a certain amount set by Government Regulation;
  • Foreign exchange gains from foreign currency;
  • Gains from revaluation of assets;
  • Insurance premiums;
  • Royalties received or accrued from the association consisting of WP members who run businesses or work is free;
  • Additional net wealth from income not yet taxed.
  • Sharia-based business income.
  • Bank Indonesia Surplus
  • Interest benefits referred to in the Act which mnegatur about KUP.

Objects are subject to corporate income tax final
On income in the form:

• Interest on time deposits and other savings;
• income from shares and other securities transactions on stock exchanges;
• Income from the transfer of property such as land and or buildings, and
• Certain other income, for tax assessment set by Government Regulation.

Excluding the tax object

  1. a. Help or donations, including alms received by the agency or institution of Zakat Zakat established or approved by the Government and the recipient is entitled to zakat.
    b. Hibahan property received by the blood relatives in a straight line of one degree, and by religious bodies or agencies or educational charities or small businesses, including cooperatives established by the Minister of Finance, as long as there is no relation to the business, occupation, possession, or control between the parties -the parties concerned;
  2. Inheritance;
  3. Property, including cash deposits received by the agency in lieu of shares or as a substitute for capital investment;
  4. Replacement or compensation in connection with the work or service which received or accrued in kind and / or pleasure from the taxpayer or the Government;
  5. Payments from insurance companies to an individual in connection with health insurance, accident insurance, life insurance, insurance Dwiguna and scholarships;
  6. Dividends or share of profits received or accrued by a limited liability company as a taxpayer of the Interior, cooperatives, or state-owned enterprises from investment in a business entity incorporated and domiciled in Indonesia, with the following requirements:
    - Dividends from retained earnings reserve, and
    - For limited companies, state owned enterprises that receive dividends, stock ownership in the entity that provides the lowest dividend 25% (twenty five percent) of the paid up capital and must have an active business outside the ownership of the shares;
  7. Contributions received or accrued by the pension fund establishment was approved by the Minister of Finance, whether paid by the employer or employee;
  8. Income from capital invested by pension funds in certain fields specified by the Decree of the Minister of Finance;
  9. Share of profits received or accrued by a member of a limited partnership whose capital is not divided into shares, partnership, association, firm and partnership;
  10. Bond interest received or accrued by mutual fund companies during the five (five) years since the founding of the company or the granting of business licenses;
  11. Income received or accrued by venture capital firms for a share of profit from the business partner agency founded and run the business or activities in Indonesia with the requirements of the business partner agencies:
    - Is a small, medium or engaged in activities in the business sectors defined by the Decree of the Minister of Finance; and
    - Shares are not traded on stock exchanges in Indonesia.

Thursday, July 22, 2010

Tax Subjects

Income taxes levied on individuals and entities, with respect to income received or accrued during the tax year.
The subject is divided into the Subject of Taxation of Domestic Taxes and tax subjects of Foreign Affairs.

Domestic tax subjects are:

  • An individual who resides in Indonesia or residing in Indonesia for more than 183 (one hundred and eighty three) days within any 12 (twelve) months, or who in any fiscal year are in Indonesia and has the intention to reside in Indonesia .
  • Agency which was established or domiciled in Indonesia, except for certain units of government agencies that meet the criteria of its formation under the provisions of legislation, funding comes from the state budget or the budget, revenues included in the central or regional budgets, accounting records reviewed by the functional supervision of the state apparatus.
  • Heritage undivided as a single unit, replacing the right.

Foreign tax subjects are:

  • An individual who is not resident in Indonesia or be in Indonesia for not more than 183 (one hundred and eighty-three) days within any 12 (twelve) months, and bodies not established or domiciled in Indonesia are conducting business or doing activities through a PE in Indonesia.
  • Individual who does not reside in Indonesia or be in Indonesia for not more than 183 days within 12 months, and bodies not established or domiciled in Indonesia, which can receive or obtain income from Indonesia rather than from doing business or conducting activities through a PE in Indonesia.

Excluding the tax subjects

  1. Representative from foreign countries;
  2. Official diplomatic representatives, and consular or other officials of foreign countries and those seconded to those who work in and reside with them, provided that:
    • not an Indonesian citizen; and
    • in Indonesia does not receive or obtain other income outside the office or work, as well as
    • country concerned provide reciprocal treatment;
  3. International organization established by the Decree of the Minister of Finance with the following requirements:
    • Indonesia is a member of that organization;
    • not engaged in business or other activities to earn income from Indonesia other than lending to the government whose funds come from contributions of the members;
  4. Official representatives of international organizations established by the Decree of the Minister of Finance with the condition:
    • not a citizen of Indonesia; and
    • do not run a business or activity or other work to earn revenue from Indonesia.

Income Tax

Income Taxes Consist of :

How do I become Tax Payer Compliance

How do I become Tax Payer (WP) Compliance
Director General of Taxes set Taxpayers who qualify as golden taxpayers every January. For the individual taxpayer, the Director General of Taxes is authorized by title determine the status of golden taxpayers without the taxpayers request along individual taxpayer meets the requirements of the letter with the letter a through e above.

Determining the validity period as the Golden Tax Payer
Determination of Compliance WP valid for a period of 2 (two) years.

Golden Tax Payer Determination Process
Golden Tax Payer Determination made by the Head of Authorities upon receipt of a nominative list of golden taxpayers from the Tax Office not later than the end of January and send the determination to the Golden Tax Payer:

* - Head Tax Office (KPP) place of domicile is registered;
* - Head KPP location where the taxpayer is registered; and
* - Head of the Regional Office where the head of KPP registered location

Cancellation of Compliance WP
Golden Tax Payer Determination Letter revoked by the Head of the Regional Office after considering proposals the Head Tax Office, in the case of cancellation criteria, namely:
  1. Taxpayers Against the criminal investigation had been done in the field of taxation;
  2. Taxpayers submit returns late period of more than 3 (three) for the fiscal period for all types of taxes;
  3. In the case late taxpayers submit tax returns period not exceeding 3 (three) for the fiscal period, there is the delivery of Return The passing of the deadline submission of tax returns during the next period;
  4. Taxpayers submit returns Period late for two (two) for the fiscal period or more in a row for all types of taxes; or
  5. In a fiscal period, it did not meet the criteria have never been sentenced for committing criminal acts in the field of taxation within a period of 10 (ten) years since the tax period concerned.

Wednesday, July 21, 2010

Company Tax payer Rights

Taxpayers also have the obligation not only has a right to confidentiality of all information that was presented at the Directorate General of Taxes in connection with its tax policy. In connection with the payment of tax payable, the taxpayer is entitled to:

  1. Installment payment, if the taxpayer experienced financial difficulties that can not afford to pay the taxes at once.
  2. Tax Deduction Article 25, if the taxpayer experienced financial difficulties due to its having trouble so can not afford the installments that have been defined previously.
  3. Reduction of the United Nations, granting tax breaks tax payable on the object.
  4. Tax Exemption, when taxpayers were hit by disasters caused by natural disasters force mayeur like. In this case the DGT will issue a policy.
  5. Tax borne by the government, In the framework of the implementation of government projects funded by a grant or loan funds overseas tax payable on the income received by the contractor, consultant and major supplier borne by the government
  6. Tax incentives to stimulate investment
  7. SPT reporting delays, if the taxpayer is unable to complete / prepare annual financial reports to meet deadlines, eligible taxpayers filed tax returns on extension request submission of Income Tax at most 6 (six) months.
  8. Restitution, refund of the overpayment), if the taxpayer feels that the amount of tax paid or tax credit is greater than the amount of tax payable or the tax payment that should not be payable, the taxpayer had no records other taxes payable.
  9. Taxpayer objection may appeal to the DGT. If in the implementation of the provisions of tax laws and regulations may happen that the taxpayer (WP) feel less / not satisfied for an assessment is imposed upon him or cutting / harvesting by third parties,
  10. Appeal, if the objection process is still not deemed satisfactory Taxpayers can appeal to the Tax Court.
  11. Judicial Review, if the taxpayer is not / was not satisfied with the decision of the Tax Court, the parties to the dispute may file a judicial review to the Supreme Court through the Tax Court and can only be submitted once.

Director General of Taxes may make tax Billing Action, if the amount of tax payable based on an assessment, revision Decree, the Decree of Objection, Decision, which increased the tax to be paid to increase, no tax is paid by the Insurer in accordance with a defined time period .

Enforcement action in the field of taxation is a series of actions taken by the investigators to search for and collect evidence

Company Tax Payer

Taxpayer
Taxpayers (WP) is a private person or agency that under taxation legislation is determined to make tax obligations, including tax collectors or cutting certain taxes.

Businessman
Entrepreneurs are individuals or entities of any kind of business or work activities to produce goods, import goods, export goods, the trade, taking advantage of intangible goods from outside the Customs Area, doing business service, or use services from outside the Customs Area. Body is a collection of people and / or capital that is union, whether doing business or not do business that includes a limited liability company, limited partnership, other companies, State Owned Enterprises or Territory with the name and in whatever form, firm, partnership, cooperatives, pension funds , partnership, association, foundation, mass organizations, political social organization, or similar organizations, institutions and forms a permanent establishment of other bodies, including mutual funds. In terms of associations including associations, unions, associations, or commitments from the parties who have similar interests.

Taxpayer Liability
In accordance with a system of self assessment, taxpayers have an obligation to register themselves, do their own calculations and reporting tax payments become due.

Registration

Taxpayers have an obligation to register to get a Tax Payer Registration Number (TIN). To obtain the TIN, the taxpayer shall register with the tax office whose territory includes the position of taxpayers with filling application forms and attach Administrative Requirements In addition to come to the Tax Office, taxpayers may also register online through e-registration on the website of Directorate General of Taxes addition to getting the TIN, the taxpayer can be confirmed as a Taxable Person (PKP) and to be given No. NPPKP (NPPKP)

Individual Tax Payer Rights


Taxpayers also have the obligation not only has a right to confidentiality of all information that was presented at the Directorate General of Taxes in connection with its tax policy. In connection with the payment of tax payable, the taxpayer is entitled to:

  1. Installment of payment, if the taxpayer experienced financial difficulties that can not afford to pay the taxes at once.
  2. Tax Deduction Article 25, if the taxpayer experienced financial difficulties due to its having trouble so can not afford the installments that have been defined previously.
  3. Reduction of the United Nations, granting tax breaks tax payable on the object.
  4. Tax Exemption, when taxpayers were hit by disasters caused by natural disasters force mayeur like. In this case the DGT will issue a policy.
  5. Tax borne by the government in the framework of the implementation of government projects funded by a grant or loan funds overseas tax payable on the income received by the contractor, consultant and major supplier borne by the government
  6. Tax incentives to stimulate investment
  7. SPT reporting delays, if the taxpayer is unable to complete / prepare annual financial reports to meet deadlines, Tax entitled Mandatory submission of tax returns filed an extension request at the latest annual income tax returns 6 (six) months.
  8. Restitution (refund of the overpayment), if the taxpayer feels that the amount of tax paid or tax credit is greater than the amount of tax payable or the tax payment that should not be payable, the taxpayer had no records other taxes payable.
  9. Objection, the taxpayer may file an objection to the DGT. If in the implementation of the provisions of tax laws and regulations may happen that the taxpayer (WP) feel less / not satisfied for an assessment is imposed upon him or cutting / harvesting by third parties,
  10. Appeal, if the objection process is still not deemed satisfactory Taxpayers can appeal to the Tax Court.
  11. Judicial Review, if the taxpayer is not / was not satisfied with the decision of the Tax Court, the parties to the dispute may file a judicial review to the Supreme Court through the Tax Court and can only be submitted once.

Director General of Taxes may make tax collection actions, if the amount of tax payable based on an assessment, revision Decree, the Decree of Objection, Decision, which increased the tax to be paid to increase, no tax is paid by the Insurer in accordance with a defined time period .

Crime investigations in the field of taxation is a series of actions taken by the investigators to search for and collect evidence by making light of the evidence in tax crime that has happened and find the suspect.

Payment and Reporting Individual Tax Payer

After registering and getting TIN, taxpayers have an obligation to calculate and pay taxes, that subsequently become due in the form of tax reporting Tax Return (SPT). The deadline for payment and reporting of tax returns and annual tax return period is as follows:

1 Tax Article 21/26
Payment deadline : Date of the following 10 months after the fiscal period ended
Reporting Deadline : 20 days after the fiscal period ended

2 Tax Article 25
Payment deadline : Date of the following 15 months after the fiscal period ended
Reporting Deadline : 20 days after the fiscal period ended

Annual

1 Individual income tax
Payment deadline : Date 25 months after the expiration of three years
Reporting Deadline : End of the third month after the end of the year
2 UN
Payment deadline :6 (six) months from the date of receipt of that letter
Reporting Deadline :-
3 BPHTB
Payment deadline : Settled at the time of the acquisition of land and or buildings
Reporting Deadline :-

If in calculating and paying taxes are found untruth in filling tax returns or because of the discovery of fiscal data based on the tests results were not reported by the Tax Payers (WP), the Directorate General of Taxation will issue an assessment Tax Letter (SKP) to the taxpayer

Tuesday, July 20, 2010

Individual Tax Payer

Taxpayer
Taxpayer is an individual or entity, including taxpayers, tax cutters, and tax collectors, who have the rights and tax obligations in accordance with the provisions of taxation legislation

Businessman
Entrepreneurs are individuals or entities of any kind of business or work activities to produce goods, import goods, export goods, the trade, taking advantage of intangible goods from outside the Customs Area, doing business service, or use services from outside the Customs Area.

Taxpayer Liability
In accordance with a system of self assessment, taxpayers have an obligation to register themselves, do their own calculations and reporting tax payments become due.
Registration
Taxpayers have an obligation to register to get a Tax Payer Registration Number (TIN). Individual taxpayer is obliged to register themselves to obtain the tax ID is:

  1. Private people who run businesses or independent
  2. Private people who do not run businesses or independent, who earn above the tax free (PTKP) must register no later than the end of next month;
  3. Married women are taxed separately, because of living apart under a judge's decision in writing or desired based on income and property separation agreement;
  4. Personal Tax Payer Specific Employers who have different business premises with residences, in addition to mandatory register at the KPP whose jurisdiction covers the place of residence, is also required to register with the Tax Office whose jurisdiction covers the place of business are conducted.

To obtain the TIN, the taxpayer shall register with the tax office whose territory includes the position of taxpayers with completing the registration form and attach the administrative requirements. In addition to the tax office visit, individual taxpayer can also register online through e-registration on the website of Directorate General of Taxation Besides getting TIN, taxpayers may be confirmed as Taxable Person (PKP) and to be given Number NPPKP.