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.