| |
| WITHHOLDING
TAXES |
| |
| What
is the method of Income Tax settlement? |
| I.
Income Tax Article 4 (2) withholding |
|
What
types of income are subject to Income Tax Article 4 (2) withholding? |
|
How
much is the tax of Income Tax Article 4 (2) withholding of rent
of land and building? |
|
How
much is the tax rate of Income Tax Article 4 (2) withholding
on lottery prizes? |
|
How
much is the tax rate of Income Tax Article 4 (2) withholding
on construction services? |
|
How
much is the tax rate of Income Tax Article 4 (2) withholding
on interest of savings, deposits, and Certificate of Bank Indonesia? |
|
|
| II.
Income Tax Article 15 withholding |
|
What
types of income are subject to Income Tax Article 15 withholding? |
|
How
much is the tax rate of Income Tax Article 15 withholding on
payment of charter or rent of ship/aircrafts derived by foreign
shipping/airline enterprises? |
|
How
much is the tax rate of Income Tax Article 15 withholding on
payment of charter or rent of ships derived by domestic shipping
enterprises? |
|
How
much is the tax rate of Income Tax Article 15 withholding on
payment of charter or rent of aircrafts derived by domestic
airline enterprises? |
|
|
| III.
Income Tax Article 21 withholding |
|
Who
are the tax withholders of Income Tax Article 21? |
|
Who
are parties being subject to Income Tax Article 21 withholding? |
|
What
types of income are subject to Income Tax Article 21 withholding? |
|
What
types of income that are excluded from Income Tax Article 21
withholding? |
|
What
are permissible deductions for calculating Income Tax Article
21 withholding? |
|
How
much are the tax rates of Income Tax Article 21 withholding? |
|
When
is Income Tax Article 21 withheld? |
|
Is
there any tax borne by the Government? |
|
|
| IV.
Income Tax Article 22 withholding |
|
Who
is the withholder of Income Tax Article 22? |
|
Who
are parties being subject Income Tax Article 22 withholding? |
|
How
much are the tax rates of Income Tax Article 22 withholding? |
|
On
Import? |
|
On
tax withholding objects in the form of payments of goods financed
by State Revenue and Expenditure Budget/Regional Revenue and
Expenditure Budget? |
|
On
tax withholding objects in the form of payments of sale of fuel? |
|
On
tax withholding objects in the form of the sales of certain
products? |
|
On
tax withholding objects in the form of product of forestry,
plantation, agriculture, and fishery used for industry and export
bought from trader collector? |
|
When
is the withholding of Income Tax Article 22 withheld? |
|
|
| V.
Income Tax Article 23 withholding |
|
Who
is the withholder of Income Tax Article 23? |
|
Who
are the parties being subject Income Tax Article 23 withholding? |
|
What
types of income are subject to Income Tax Article 23 withholding? |
|
How
much are the tax rates of Income Tax Article 23 withholding? |
|
When
is the time of Income Tax Article 23 withholding? |
|
What
types of income are not subject to Income Tax Article 23 withholding? |
|
|
| VI.
Income Tax Article 26 withholding |
|
Who
is the withholder of Income Tax Article 26? |
|
Who
are the parties being subject Income tax Article 26 withholding? |
|
What
types of income are subject to Income Tax Article 26 withholding? |
|
How
much are the tax rates of Income Tax Article 26 withholding? |
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|
INDONESIA'S WITHHOLDING TAXES |
|
| Methods
of the Settlement of Income Tax |
|
| The
Settlement of Income Tax should be done as following: |
|
| a. |
The
Settlement of Income Tax in Current Year : |
|
1) |
The
payment of Income Tax by taxpayers themselves by way of:: |
|
|
-
monthly payment Income Tax Article 25 |
|
|
-
payment of Exit Fiscal by individuals travelling aboard |
|
2) |
through the withholding Income Tax by other parties, that can
be in form of : |
|
|
-
Income Tax Article 4 (2) withholding |
|
|
-
Income Tax Article 15 withholding |
|
|
-
Income Tax Article 21 withholding |
|
|
-
Income Tax Article 23 withholding |
|
|
-
Income Tax Article 26 withholding |
| b. |
The
settlement of Income Tax of Income tax Article 29 at the end
of tax year, through the payment of Income Tax Article 29 that
should be done at the latest date 25th of the following third
month after the date of expiration of tax period. |
| c. |
Tax
payment abroad of foreign income (Income Tax Article 24) |
| d. |
Income
Tax borne by the government, for instance Income Tax Article
21 borne by government based on Government Regulation Number
47 Year 2003. |
| |
|
|
|
| I.
INCOME TAX ARTICLE 4 SUBSECTION 2 |
|
| Certains
incomes are subject to Income Tax Article 4 Subsection ( 2 )withholding,
which is final in nature, those are:: |
|
-
Rent on lands and buildings |
|
-
Lottery prizes |
|
-
Interest of Savings / Deposits and SBI (Certificate of Bank
Indonesia) |
|
-
Compensation for construction services |
|
|
| The
meaning of Final Tax: |
|
| Income
in relation with Income Tax already been withheld Final Tax
for the recipient of the income is excluded in calculating the
amount of taxable income of the tax year concerned, and the
tax already withheld cannot deducted as a tax credit. |
| |
|
|
|
| Rent
on Lands and Buildings |
|
| - |
Withholding
tax rate is 10% from gross rent (including any service charge
realted to the the rent) |
| - |
The
parties who withhold tax are the lesses. |
| - |
The
tax already been withheld should be remitted to the State Treasury
at the latest date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
|
|
|
|
|
| Lottery
Prizes |
|
| - |
Withholding
tax rate is 25% from the gross prizes.. If the prize is in the
form of goods, therefore those goods should be valued of its
sale value (in the sale value does not include margin if the
goods is sold) |
| - |
Parties
who withhold tax are the lottery organizers. |
| - |
The
tax already been withheld should be remmited to the State Treasury
at the latest of date 10th of the next following month and reported
at the latest date 20th of the following month. |
| |
|
|
|
|
|
| Interest
of Savings, Deposits, and SBI (Certificate of Bank Indonesia) |
|
| - |
Withholding
tax rate is 25% from the gross interest |
| - |
Parties
who withhold tax are the bank concerned |
| - |
The
tax already been withhold should be remmited to the State Treasury
at the latest of date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
|
|
|
|
|
| Compensation
for Construction Services |
|
|
| Compensation
for construction services derived by a construction firm, having
a Certificate as a small scale enterpreneur issued by the authorised
Institution, and the value of the contract is no more than IRD
1 billion rupiah is subject to a final tax. |
|
|
| Withholding
tax rate is as follows: |
| 1) |
2% for compensation for construction executing service; |
| 2) |
4%
for compensation for construction controlling service; |
| 3) |
4%
for compensation for construction planning service. |
|
|
| Parties
who withhold tax are the users of the construction services |
|
|
| The
tax already been withheld should be remmited to the State Treasury
at the latest date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
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| II.
INCOME TAX ARTICLE 15 |
|
|
| Certains
incomes that are subject Income Tax Article 15 withholding are: |
| - |
Payment
of charter or rent of ships/aircrafts derived by foreign shipping
/ airline enterprises |
| - |
Payment
of charter or rent of ships derived by domestic shipping enterprises |
| - |
Payment
of charter or rent of aircrafts derived by domestic airline
enterprises |
| |
|
|
|
|
|
| Payment
of charter or rent of ships/aircrafts derived by foreign shipping
/ airline enterprises |
|
|
| - |
Withholding
tax rate is 2.64% from the gross payment of charter/rent. |
|
|
| Parties
who withhold tax is the lesse ship or plane. The tax should
be withheld at the time of payment of rent/charter is owed or
at the time of payment (recorded as expense by lesse), depend
on which of the time come earlier. |
|
|
| The
tax already been withheld should be remmited to the State Treasury
at the latest date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
|
|
|
|
|
| Payment
of charter or rent of ships derived by domestic shipping enterprises |
|
|
| - |
Withholding
tax rate is 1.2% from the gross payment of charter/rent. The
tax is final in nature. |
|
|
| Parties
who withhold tax are the lesses. The tax should be withheld
at the time of payment of rent/charter is owed or at the time
of payment (recorded as expense by lesse), depend on which of
the time come earlier. |
|
|
| The
tax already been withheld should be remmited to the State Treasury
at the latest date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
|
|
|
|
|
| Payment
of charter or rent of aircrafts derived by domestic airline
enterprises |
|
|
| - |
Withholding
tax rate is 1,8% from the gross payment of charter/rent |
|
|
| Parties
who withhold tax are the lesses. The tax should be withheld
at the time of payment of rent/charter is owed or at the time
of payment (recorded as expense by lesse), depend on which of
the time come earlier. |
|
|
| The
tax already been withheld should be remmited to the State Treasury
at the latest date 10th of the next following month and should
be reported at the latest date 20th of the following month. |
| |
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| III.
INCOME TAX ARTICLE 21 |
|
|
|
Withholders of Income Tax Article 21 |
| - |
Employer |
| - |
Government
Treasurers of central government and regional government, government
bodies or institutions, and other government bodies that pay
salary, wages, honorariums, allowances, and other payments in
any names and forms whatsoever in connection with employment,
services or other activities. |
| - |
Pension
Funds such as PT Taspen, PT Astek, Labour Social Guarantee (Jamsostek),
and other bodies that pay Old Age Savings and Old Age Contribution. |
| - |
Enterprises,
Statutory Bodies/Entities including Permanent Establishments
that pay honorarium or other payments as the compensation for
services and activities, include services of experts with status
of resident taxpayers who perform independent services. |
| - |
Foundations (including foundation in the field of welfare, hospital,
education, arts, sports, and cultures), institutions, committee,
associations, groups, and other payments in any names and forms
whatsoever in connection with employment, services and activities
performed by individuals. |
| - |
Enterprises, Statutory
Bodies/Entities including Permanent Establishments that pay
compensation to the participant of educations, trainings, and
apprentices. |
| |
|
|
|
|
|
| Parties
who are subject to Income Tax Article 21 |
| - |
Resident
individual tax payers who receive or earn compensation in relating
to the employment, services or activities performed by them.. |
| |
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| |
|
|
|
| Object
of Income Tax Article 21 Withholding |
|
|
| Income
receive or earn by invidual resident tax payers relating to
the employment, services, and activities performed by them in
the form of: |
| - |
Regular
income in any names and forms whatsoever |
| - |
Irregular
income, such as bonus, annual premiums, gratuities, holiday
allowances, production allowances, Great Day allowance, and
othe irregular income in any names and forms whatsoever |
| - |
Daily
wages, weekly wages, unit wages, contact work wages. |
| - |
Pension
contribution, severance pay, Old Age Savings, and other payments
of the same type. |
| - |
Honorariums,
pocket money, prizes, rewards in whatever names and forms, commissions,
scholarships and other payment as the compensation for employments,
activities, services rendered by: |
|
1. |
Experts |
|
2. |
Artists |
|
3. |
Atheletes |
|
4. |
Advisers,
instructors, trainers, speakers, moderators |
|
5. |
Authors,
researchers, translators |
|
6. |
Service
providers in all field including computer technician and its
application systems, telecommunications, electronics, photography,
economic and social. |
|
7. |
Advertising
agent |
|
8. |
controller,
project management, members and service providers to a committee,
members of meeting and session, and other impermanent works
in all fields |
|
9. |
Order
bearer, or some who find customers |
|
10. |
Contest
participants |
|
11. |
Salesman |
|
12. |
Insurance
sale services |
|
13. |
Education,
training, and apprentices participants |
| |
14. |
Distributor
of multilevel marketing enterprises or direct selling and the
same type of activities |
|
15. |
Salary,
honorary salary and allowances received by government officials |
| |
|
| |
|
|
|
| Income
not subject to Income Tax Article 21 withholding (tax object
exclusion) |
| a. |
premium
of health insurance companies, accident insurances, life insurances,
dual purpose insurances, scholarship insurances. |
| b. |
Compensation
in form of benefit in kinds and fringe benefits |
| c. |
Pension
contribution paid to a pension fund whose the establishment
validated by The Ministry of Finance, Old Age Security paid
to organizer of Labour social security which is paid by the
employer. |
| d. |
Compensation
in form of fringe benefits and benefit in kinds provided by
the government. |
| e. |
Fringe
benefits in a form of taxes borne by employer. |
| f. |
Tithe
(Zakat) received by the individual entitled recipients of tithe
from institutions or charity agencies (amil zakat) established
by the government. |
| |
|
| |
|
|
|
| Permissible
deductions for calculating Taxable Income |
|
|
| Permissible
deductions for calculating Taxable Income for permanent employee |
| 1. |
Functional
cost 5% from gross income, at maximum of IDR Rp. 1.296.000 per
year or Rp. 108.000 per month |
| 2. |
Contribution
related to salary paid by the employees to a pension fund, or
Old Age Savings or Old Age Security institutions or agencies
whose establishment have been validated by The Minister of Finance. |
| 3. |
Untaxed
Income (PTKP) |
| |
The
deduction in a form of untaxed income shall be granted to resident
individual taxpayers. The non taxable income is as follows: |
|
a. |
Rp.
13.200.000 ( Thirteen million two hundred thousands rupiah )
for individual tax payer himself/herself. |
|
b. |
Rp.
1.200.000 ( One million two hundred thousands rupiah ) additional
given for married taxpayers |
|
c. |
Rp.
13.200.000 ( Thirteen million two hundred thousands rupiah )
additional given for a single wife whose income is combined
with income of husband based on Article 8 Subsection 1 |
|
d. |
Rp.
1.200.000 ( One million two hundred thousands rupiah ) additional
for each family member of the same blood in one degree of straight
descent line as well as any adopted child, who is fully dependent
from the related person, at a maximum 3 individuals per family. |
|
|
|
| Notes: |
| In
case of female married employee, the untaxed income (PTKP) shall
be deducted only for herself, for unmarried female employee,
the untaxed income (PTKP) deducted in addition to that for her
shall be increased by the untaxed income (PTKP) for family members
as dependents. |
|
| For
non-permanent employees, the permissible deduction for calculating
Taxable Income is only Untaxed Income (PTKP). |
|
| For
pensioner, the permissible deduction for calculating Taxable
Income are: |
| a. |
Pension
cost is 5% from gross pension, maximum Rp. 432.000 per year
or Rp. 36.000 per month |
| b. |
Untaxed
Income (PTKP) |
|
|
| For
daily workers, weekly workers, and other non permanent employees
the permissible deduction is a deduction of Rp. 24.000 per day,
in conditions in one month of calendar not exceeding Rp. 240.000
and the wages are not paid monthly. |
| In
the case of income in one moth of calendar more than Rp. 240.000
or its salary/wages paid monthly, therefore the untaxed income
can be deducted is actual non taxable income. For in case of
income more than Rp. 240.000, deduction of non taxable income
is actual untaxed income divided by 360. In the case of the
wages paid monthly, deduction of untaxed income is actual untaxed
income. |
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|
| |
|
|
|
| Tax
rates of Income Tax Article 21 Withholding |
| Types
of income |
Tax
Base |
Tax
Rates |
| Income
received or earned by: |
|
|
| a. |
permanent
employee |
Taxable
Income 1) |
Tax
Rate under Article 17 2) |
| b. |
pension
receiver paid monthly |
| c. |
non
permanent employee, apprentices |
| d. |
distributor
of multilevel marketing or direct selling and activities
of the same type |
|
| Income
in the form of : |
| a. |
honorariums,
pocket money, prize or award in any forms, commission,
scholarship, and other payment of the same type as the
compensation for services or activities that is calculated
not based on the amount of days needed to carry out the
services or activities: |
Gross Income |
Tariff
Article 17 |
|
- |
Atheletes |
| - |
advisers,
teachers, trainers, speakers, person who provide elucidation
and moderator |
| - |
Author,
researcher, transalator |
| - |
Service
providers in any fields including computer technician
and its application systems, telecommunication, electronic,
photography, social and economic . |
| - |
Advertising
agent |
| - |
controller,
project manager, members and services providers of an
organizer, member of meeting and session, and other independent
workers in any activities |
| - |
contest
participants |
| - |
order
messenger or persons who find out customers |
| - |
sales man |
| - |
Insurance
staffs |
| - |
honorariums
received or earned by member of board director or commissioner
who are not the permanent employees in the same company. |
| - |
production
allowances, tantieme, gratuities, bonus received or earned
by ex employees. |
| - |
draw
of fund at pension funds which its establishment validated
by The Minister of Finance. |
|
| Income
received or earned by experts (which perform professional
services) : lawyer, accountant, architect, medical doctor,
consultant, notary, appraiser and actuaries. |
Estimation
of Net Income 50% from the gross income |
15% |
|
| Daily
wages, weekly wages, groups, and other pocket money exceeding
Rp. 24.000 per day but not exceeding Rp. 240.000 per month
and not paid monthly 3) |
The
difference between wages or daily pocket money received
or earned after deducted by Rp. 24.000 |
5% |
|
| Income
in the form of severance pay,pension compensation paid
by a pension fund at once, Old Age Saving, Old Age Security
paid at once by Pension Organizers, or Organizer Bodies
for Labour Social Security (Jamsostek). |
|
|
| a. |
Gross
income more than Rp. 25.000.000 up to Rp. 50.000.000 |
Gross
Income |
5% |
| b. |
Gross
income more than Rp. 50.000.000 up to Rp. 100.000.000 |
Gross
Income |
10% |
| c. |
Gross
income more than Rp. 100.000.000 up to Rp. 200.000.000 |
Gross
Income |
15% |
| d. |
Gross
income more than Rp. 200.000.000 |
Gross
Income |
25% |
|
|
|
|
| Income
up to Rp. 25.000.000 shall be excluded. Income earned
or received by Non-Resident Invidiual Taxpayers (Income
Tax Article 26) |
Gross
Income |
20%
of the gross income |
|
| Notes: |
| 1) |
For
calculating Taxable Income of non-permanent employees, apprentices,
and employee candidates, the gross income is deducted by Untaxed
Income. |
|
|
| 2) |
Tax
Rate of Article 17 are as following: |
|
Taxable
Income |
|
|
|
- |
Up
to Rp. 25.000.000 (Twenty five million rupiah) 5% |
|
- |
Above
Rp. 25.000.000 (Twenty five million rupiah) up to Rp. 50.000.000
(Fifty million rupiah) 10% |
|
- |
Above
Rp. 50.000.000 (Fifty million rupiah) up to Rp. 100.000.000
(one hundred million rupiah) 15% |
|
- |
Above
Rp. 100.000.000 (One hundred million rupiah) up to Rp. 200.000.000
(Two hundreds million rupiah) 25% |
|
- |
Above
Rp. 200.000.000 (Two hundreds million rupiah ) 35% |
|
|
|
| 3) |
For
obtaining daily wages and daily pocket money : |
|
|
|
a. |
In
daily wages or weekly pocket money is those amount divided by
6 |
|
b. |
in
the case of singgle wages is the wages for the total amount
of single product produced in one day |
|
c. |
in
the case of group wages is the total amount of group wages divided
by the amount of days spent for finishing the job. |
|
|
|
|
In
case the recipient of wages or pocket money is a permanent employee,
such income should be aggregated with other income received
from the employer concerned. |
| |
|
|
|
| Time
of Income Tax Article 21 Withholding |
|
| At
the end of month of payment or at the end of month the income
is owed. The Income Tax Article 21/Article 26 already been withheld
should be remmited by withholder tax at the latest of date 10th
of the next following month and should be reported at the latest
of date 20th of the following month. |
| |
|
|
|
| Taxed
borne by the Government |
|
| For
income up to Rp. 1.000.000 per month, tax borne by government |
| |
|
|
|
| IV.
INCOME TAX ARTICLE 22 |
|
| The
Withholder Income Tax Article 22 |
|
| Those
who pointed as Withholder Income Tax Article 22: |
|
| 1. |
Foreign
Exchange Banks and Directorate General of Customs and Excise
Duty, on import of goods |
| 2. |
Directorate
General of Budget, Government Treasurer (Central and Regional),
State administration-owned companies and Regional administration-owned
companies, that make payments on goods purchase from state /
regional budget. |
| 3. |
Enterprises
in the fields of cement, cigarette, paper, steel, and automotive
industries, designated by the Head of Tax Service Office on
their domestic sales |
|
|
|
Include
withholder tax. Income Tax Article 22 above selling of cement
in domestic are single distributor/core distributor of cement
production |
|
- |
Semen
Cibinong Pty Ltd |
|
- |
Semen
Indocement Pty Ltd |
|
- |
Semen
Nusantara Pty Ltd |
|
|
|
| 4. |
PERTAMINA
on sale of it's product in the form of premium, diesel fuel
, lubricant, gas and kerosene. |
| 5. |
Enterprise
other than PERTAMINA that carry on business in the field of
premix and gas, on the sales of their products to suppliers
or agents. |
| 6. |
BULOG,
on distribution of sugar and fluor to distributors and/or agents
and other buyers. |
| |
|
| |
|
|
|
| Parties
being subject to Income Tax Article 22 |
|
|
| 1. |
Those
who act upon import goods activities (Importer) |
| 2. |
Suppliers
who receive payment from Directorate General of Budget, State/Regional
Government Treasurers, State or Regional administration-owned
companies, BPPN and Bank of Indonesia on the deliveries/sales
of goods which being financed by funds derived from the State
Budget of Revenue and Expenditure (APBN) or Regional Budget
of Revenue and Expenditure (APBD) |
| 3. |
Suppliers
or agents of PERTAMINA |
| 4. |
Suppliers
or agents of enterprises other than PERTAMINA that carry on
business in the field of fuel and gas |
| 5. |
Suppliers
and agents of sugar and fluor from BULOG, also other buyers
which directly buying from BULOG |
| 6. |
Suppliers,
dealers, agents, and wholesalers of cement, white or clove cigarette
, paper, steel, and automotive on domestic sales of the product. |
| |
|
| |
|
|
|
| Tax
Rate of Income Tax Article 22 Withholding |
|
|
| a. |
On
Import, Income Tax Article 22 withheld shall be as follows: |
|
1. |
for
party who hold the Import License (Angka Pengenal Impor (API)
, is 2.5% from import value, |
|
2. |
for
party who do not hold the Import License (Angka Pengenal Impor
(API) , is 7.5% from import value, |
|
3. |
for
not imported goods that are not controlled by any one is 7.5%
from auction sale price. |
|
|
|
|
Import
value shall be value in money term that becomes the basis for
calculation custom duties are Cost Insurance and Freight (CIF)
added by custom duties and other levies which are imposed under
regulations in import section. |
| |
|
| |
|
|
|
| b. |
On
tax withholding objects in form of payment on purchase of goods
which being financed by funds derived from the State Budget
of Revenue and Expenditure (APBN) or Regional Administration
Budgets of Revenue and Expenditure (APBD), The tax rate is 1,5%
from purchasing price. |
| |
|
| |
|
|
|
| c. |
On
tax withholding objects in form of payments of sale of fuel,
the tax rate are as follows : |
|
| Type
of Industry |
Private
SPBU |
PERTAMINA
SPBU |
| Premium |
0,3%
of sales |
0,25%
of sales |
| Diesel
Fuel |
0,3%
of sales |
0,25%
of sales |
| Premix
/ Super TT |
0,3%
of sales |
0,25%
of sales |
| Kerosene |
0,3%
of sales |
0,3%
of sales |
| LPG
Gas |
|
0,3%
of sales |
| Lubricant |
|
0,3%
of sales |
|
| |
|
|
| |
|
|
|
|
|
| d. |
On tax withholding objects in the form of sales
of certain products: |
|
| Type
of Industry |
Tariff
of Income Tax Article 22 |
Tax
Base |
| Cement
Industry |
0,25% |
VAT
Tax Base |
| Cigarette
Industry |
0,15% |
Price
found on Official Sale (Final) |
| Paper
Industry |
0,1% |
VAT
Tax Base |
| Steel
Industry |
0,3%
|
VAT
Tax Base |
| Automotive
Industry |
0,45% |
VAT
Tax Base |
|
| |
|
| |
|
|
|
| e. |
On
tax withholding objects in the form of product of forestry,
plantation, agriculture and fishery useds for industry and export
bought from trader collector, the rate is 1.5% of the buying
price. |
| |
|
| |
|
|
|
| Time
of the withholding Income Tax Article 22 |
|
|
| a. |
By
state/regional treasurers: at the time of payment on delivery
goodsfrom customers |
| b. |
On
import goods: at the same time with payment of custom duties |
| c. |
On
certain products: at the time of sales |
| d. |
on
fuel of premix,Super TT and gas: before Delivery Order is settled |
| e. |
On
plantation, agriculture, fishery, and forestry products: at
the time of product purchase |
| |
|
| |
|
|
|
| V.
INCOME TAX ARTICLE 23 |
|
| Tax
Withholders |
|
| - |
Government
Bodies |
| - |
Resident
Corporate Tax Subjects |
| - |
Event
Organiser |
| - |
Permanent
Establishment, or other foreign's company representatives |
| - |
Resident
individual tax subjects designated by the Head of Tax District
Service |
| |
|
| |
|
|
|
| Parties
being subject to Income Tax Article 23 withholding |
|
| Resident
taxpayers and permanent establishment |
| |
|
|
|
| Object
of Income Tax Article 23 withholding: |
| - |
Interest |
| - |
Dividen |
| - |
Royalty |
| - |
Prize
and reward, other than those already been withheld Income Tax
according to Article 21 |
| - |
Interest
of cooperatives savings |
| - |
Rent
and other income relating to the utilization of assets |
| - |
Compensation
relating to technical services, management services, construction
services, consultant services, and other services determined
by The Director General of Taxes. |
| |
|
| |
|
|
|
| Tax
Rate of Income Tax Article 23 Withholding |
|
|
| The
tax rate of the Income Tax Article 23 withholding is 15%. However,
the tax base of the Income Tax Article 23 withholding is categorized
in to two groups as follows: |
| a. |
Groos
income, which are applicable to the Income Tax Article 23 withholding
on interest, dividend, royalty, prize and reward |
| b. |
Estimated
Net Income determined by The Director General of Taxes, which
are applicable to the Income Tax Article 23 withholding on rent,
technical services, management services, construction services,
consultant services and other services determined by the the
Director Gerenal of Taxes. |
| The
newest Decree of The Director General of Taxes concerning the
Estimated Net Income for calculating the Income Tax Article
23 withholding and other services which are subject to the Income
Tax Article 23 withholding is the Decree Number KEP-170/PJ./2002
dated 28 March 2002. |
| |
|
| |
|
|
|
| Time
of Income Tax Article 23 withholding |
|
| The
time of Income Tax Article 23 withholding is at the time of
income being subject to the Income Tax Article 23 withholding
is accrued or at the time of the payment of the income, whiever
is earlier. |
| |
|
|
|
| Types
of income which are not subject to Income Tax Article 23 withholding: |
|
| a. |
income
paid or owe to the bank |
| b. |
rent
paid or owe to a leasing with option rights |
| c. |
dividend
as reffered to in Article 4 Subsection 3 letter f Law Number
17 Year 2000 |
| d. |
Bond
interest as reffered to in Article 4 Subsection 3 letter j Law
Number 17 Year 2000 |
| e. |
Part
of profits received or accrued by members from unlimited liability
companies whose capital is not divided into shares, partnerships,
groups, firms, and joint businesses. |
| f. |
the
rest of cooperative income divided into their members. |
| g. |
Interest
of deposits which not exceeding the limitation as stipulated
with Ministry of Finance Decree paid by cooperatives to their
members. |
| |
|
| |
|
|
|
| VI.
INCOME TAX ARTICLE 26 |
|
| Tax
Withholders |
|
| Those
who pointed as withholder Income Tax Article 26 are: |
| - |
Government
Bodies |
| - |
Resident
Corporate Tax Subject
|
| - |
Event
Organisers |
| - |
Permanent
Establishment, or other foreign companies representatives |
| - |
Resident
individual tax subjects designated by the Head of Tax District
Service |
| |
|
| |
|
|
|
| Parties
being subject to Income Tax Article 26 withholding |
|
| Non-resident
taxpayers, except permanent establishment |
| |
|
|
|
| Income
which categorise as object of withholding Income Tax Article
26 |
|
| Type
of income which withhold Income Tax Article 26 as big as 20%
from income bruto is type of income with any name and in form
of anykind as: |
| a. |
dividend
from domestic company |
| b. |
interest,
include commission in the reason of guarantee of debt repayment |
| c. |
rent,
royalty, and other income relating to the utilization of assets. |
| d. |
commission
paid for technic service and management service performed in
Indonesia, whether paid or due by Government Bodies, State or
Regional administration-owned companies with any name and in
the form of anykind or by other resident tax payers to non resident
tax payers. |
| |
|
|
|
| Tariff
of withholding Income Tax Article 26 |
|
| Tariff
of withholding Income tax Article 26 is 20% from bruto for income
in form of: |
| a. |
dividend |
| b. |
interest,
include premiums, discounts, and commissions relating to guarantee
of debt repayment |
| c. |
royalty,
rent, and other income relating to the utilization of assets |
| d. |
commission
relating to services, jobs, or activities |
| e. |
prize
and award |
| f. |
pension
and other ……… |
|
|
| Note: |
| For
income in form of interest, dividend, and royalty, if income
receiver having the status of resident of country which has
tax agreement, applicable tariff is tariff based on associated
tax agreement. |
|
| Tariff
of withholding Income Tax Article 26 is 20% from estimation
of net income for income in form of: |
| - |
Selling
outcome of asset in Indonesia |
| - |
Insurance
premium paid to foreign insurance companies. |
|
|
| Tariff
of withholding Income Tax Article 26 is 20% from Taxable Iincome
after deducted Income Tax for income in form of : |
| Income
Tax of Permanent Establishment after deducted by Income Tax. |
|
| Note: |
| If
the income receiver (related Head office of Permanent Establishment)
having the status of resident of country which has tax agreement,
applicable tariff is tariff based on associated tax agreement. |
| |
|
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[ Income Tax ]
[ Value Added Tax ] |