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%
   
   

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.