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    Khairunnisa Rahinaningtyas
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    Taxation

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    Taxation

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    4 views1 page

    Summary #3

    Uploaded by

    Khairunnisa Rahinaningtyas
    Taxation

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Khairunnisa Rahinaningtyas

    16/397035/EK/20991
    UU No. 7 of 1984 about taxable income (PPh) is implied since January 1 1984. In this
    law, tax payers (also called Wajib Pajak) are those who receive income regularly. Wajib Pajak
    has three categories, including; individual tax payers or heritance that is not yet divided, entity,
    and permanent establishment. Tax payers can also be distinguished by its domain; domestic and
    foreign. If there are categories of tax payers, then there will also be non-tax subject, including;
    representative offices of foreign countries, officials of diplomatic representation and consulates
    or other officials of foreign countries, international organizations, and their representatives.

    The object of tax shall be income, which is any additional economic capability received
    or obtained by a taxpayer, whether originating from Indonesia or outside Indonesia. For
    taxpayers in the country, the object of tax is income both originating from Indonesia and from
    outside of Indonesia. While for foreign taxpayers, the object of tax only income derived from
    Indonesia alone. There are several categories that do not fit, for example assistance or donation,
    heritage, grants received by blood-related relatives, cash deposits received by the entity in lieu of
    stock, etc.

    The tax basis for domestic WP and permanent establishment is taxable income, while
    overseas/foreign WP is gross income, which is regulated by Law PPh Article 26. For the entity
    WP, the tax basis is net income, while individual WP’s basis is net income minus non-taxable
    income. There are two ways to calculate taxable income, by doing bookkeeping or following the
    norm of net income calculation. Criteria that bookkeeping users must fulfill are:

    1. Reflect the true condition of the entity


    2. Held in Indonesia
    3. Recorded in bahasa or any approved language by Ministry of Finance

    Non-taxable income is regulated by Law of PPh, implied starting from January 1 2016.
    This law also established a range of tax rates based on individual domestic WP. Permanent
    establishment is a business entity used by individuals not staying or living in over 183 (one
    hundred and eighty three) days in a period of 12 (twelve) months or body not established and
    domiciled in to undertake business or activity in. Form of permanent establishment (BUT)
    including domicile of management, corporate branch, representative office, etc.

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