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Hot
News concerning the New Untaxed Income ("PTKP")
On
23 September 2008, the Government of the Republic of Indonesia promulgated
Law Number 36 Year 2008 concerning the Fourth Amendment of Law Number
7 Year 1983 concerning Income Tax. This Law shall effective by 1
January 2009.
Under
this Law the amount of Untaxed Income (“PTKP”) and Income tax rate
are amended.
a.
The Amount of Untaxed Income ("PTKP") is as follows:
| Description
of Untaxed Income (“PTKP”) |
The
Amount of the new Untaxed Income per year
(IDR)
|
| 1. |
For
taxpayer himself |
Rp
15,840,000.00
|
| 2. |
Additional
sum for married taxpayer |
Rp
1,320,000.00
|
| 3. |
Additional
sum for a spouse which her income is aggregated with her husband’s
income |
Rp
15,840,000.00
|
| 4. |
Additional
sum per family member related by blood and by marriage in a
straight line, and adopted children as full dependent, at maximum
of three |
Rp
1,320,000.00
|
This
new Untaxed Income (“PTKP”) scheme will be effective as of 1 January
2009.
b.
Income tax rate is as follows:
1)
Income tax rate for resident individual taxpayer:
| Taxable
Income |
Tax
Rate
|
| Up
to IDR 50,000,000.00 |
5%
|
| Exceeding
IDR 50,000,000.00 up to IDR 250,000,000.00 |
15%
|
| Exceeding
IDR 250,000,000.00 up to IDR 500,000,000.00 |
25%
|
| Exceeding
IDR 500,000,000.00 |
30%
|
2) Income tax
rate for resident corporate taxpayers and permanent establishments
is 28% of taxable income.
3) Corporate
resident taxpayer which is 40% of its whole paid up capital is sold
in a stock exchange in Indonesia and fulfilling other certain requirements
shall have 5% tax rate lower than 28%.
4) The highest
tax rate on dividend derived by resident individual taxpayer is
10%. The dividend tax is final in nature. Under the old law, the
highest tax rate on dividend is 35%.
5). Withholding
tax rate on any consideration for service is 2% of gross income.
Under the old law such tax rate is 15% of estimated net income.
6) Tax rate
for taxpayers who derive gross income no more than IDR 50,000,000,000
and its taxable income no more than IDR 4,800,000,000 shall entitle
a tax facility in a form of tax rate deduction amounting to 50%
of the normal tax rate.
up..
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