Tax Material Part 2

Recap of Last Week's Material: Taxation Concept

• Definition of Tax: Mandatory contributions to the state from individuals or businesses.
• Benefits: For the state's needs, people's prosperity.
• Types of Taxes: Income tax, Property tax, VAT, etc.

Tax Administration Flow in Indonesia

1. Register
   • Taxpayers (WP) register themselves to obtain an NPWP (Taxpayer Identification Number).
   • Can register directly at the tax service office (KPP) or online.
2. Calculate
   • WP calculates the amount of payable taxes.
   • Usually over an annual period.
3. Pay
   • WP pays the tax to a designated bank or post office using a Tax Payment Slip (SSP).
4. Report
   • WP fills out a Tax Return (SPT) and reports it to the KPP.
   • Proof of reporting is in the form of a Tax Return Receipt.

Income Tax (PPh)

• Definition: A tax imposed on individuals or businesses on the income they receive within a tax year.
• Tax Subjects: Individuals or businesses that are required to pay taxes.
• Tax Objects: Income such as salary, wages, allowances, honorarium, pension money, bonuses, business profits, lottery prizes.
• Non-taxable Income (PTKP): Part of the total income that is not subject to tax:
  • The WP itself: 54 Million.
  • Additional for marriage: 4.5 Million.
  • Additional for children (max 3 children): 4.5 Million per child.
• Taxable Income (PKP): Total net income in one year minus PTKP.
• Income Tax Rate for Individuals:
  • Up to 50 Million: 5%.
  • 50 Million – 250 Million: 15%.
  • 250 Million – 500 Million: 25%.
  • Above 500 Million: 30%.

Example of Income Tax Calculation

Example 1: Mr. Yusuf

• Data:
  • Monthly salary: 10 Million.
  • Status: Married, wife does not work, 4 children.
• Calculation:
  • Annual income: 10 Million x 12 = 120 Million.
  • PTKP: 72 Million (WP itself + marriage + 3 children).
  • PKP: 120 Million - 72 Million = 48 Million.
  • Rate 5% for 48 Million: 2.4 Million per year.
  • Monthly tax: 2.4 Million / 12 = 200 Thousand.

Example 2: Mr. Amir

• Data:
  • Monthly salary: 13 Million.
  • Monthly overtime allowance: 2 Million.
  • Monthly BPJS contribution: 100 Thousand.
  • Monthly pension contribution: 200 Thousand.
  • Status: Married, wife does not work, 1 child.
• Calculation:
  • Monthly gross income: 13 Million + 2 Million = 15 Million.
  • Deductions (BPJS + pension): 300 Thousand.
  • Monthly net income: 14.7 Million.
  • Annual net income: 14.7 Million x 12 = 176.4 Million.
  • PTKP: 63 Million (WP itself + marriage + 1 child).
  • PKP: 176.4 Million - 63 Million = 113.4 Million.
  • Tax rate: 5% for 50 Million, and 15% for the remainder.
  • Annual tax: 50 Million x 5% + 63.4 Million x 15%
  • Monthly tax: Total annual tax / 12.

Conclusion

• Next, we will learn to calculate VAT and Property Tax.