INCOME TAX ACT 25 Installment Payment for Indonesian

INCOME TAX ACT 25 (Installment Payment for Indonesian) Adi Cahyono Diah ayu P Mey yuana afifah Nanda Primidya Primus Adrianus Syauqi Kesya Anwar Zakky Zamrudi

INCOME TAX PASAL 25 IS PPh (INCOME TAX) INSTALLMENT THAT MUST BE PAID BY TAXPAYERS ITSELF FOR EVERY MONTH OF THE CURRENT TAX YEAR. THE INSTALLMENT CAN BE TAX CREDIT AGAINST THE TAX PAYABLE ON TOTAL INCOME OF THE TAXPAYER AT THE END OF THE TAX YEAR

CALCULATE MONTHLY INSTALLMENT Ø Calculation income tax installment Pasal 25 Ayat(1) for individual taxpayers. PPh based on annual SPT of PPh last year Less/Tax Credit: PPh Pasal 21 xxx PPh Pasal 22 xxx PPh Pasal 23 xxx PPh Pasal 24 xxx Total Tax Credit Basis for calculating installment xxx (xxx) xxx Installments PPh Pasal 25 = basis for calculating installment / 12 or number of months in the tax year parts

Ø Calculation income tax installment Pasal 25 Ayat(1) for corporate taxpayer. PPh based on annual SPT of PPh last year Less/Tax Credit: PPh Pasal 22 xxx PPh Pasal 23 xxx PPh Pasal 24 xxx Total Tax Credit Basis for calculating installment xxx (xxx) xxx Installments PPh Pasal 25 = basis for calculating installment / 12 (or amount of months in the tax year parts)

CALCULATE PPh (INCOME TAX) INSTALLMENTS FOR THE MONTHS BEFORE THE DEADLINE FOR SUBMISSION OF SPT TAHUNAN (ANNUAL TAX RETURN) PPh Amount of tax installment before letter of notification has been issued Amount of tax installment last month in tax year ago

CALCULATE PPh INSTALLMENTS PASAL 25 IF IN THE CURRENT YEAR ISSUED SURAT KETETAPAN PAJAK FOR TAX YEAR AGO If in current year issued tax assessment letter to last tax year, amount of tax installment recalculated based on the tax assessment letter Changes in the amount of tax installment apply start from next month after month issuance the tax assessment letter

PPH 25 in Special Matter 1. Assessable entitled for loss compensation 2. Assessable have irregular earnings 3. The past annual tax notice (SPT) submitted after due date 4. Assessable receive additional period for submit the SPT 5. Assessable to correcting their income tax SPT 6. the assessable businesses or working activities are changes

PPH 25 in Special Matter 1. Assessable entitled for loss compensation • Monthly installments for the months before the submission deadline, is taxed as many as the latest month of previous years • Then substituted with the new tax decree (SKP) • If the remaining losses is exceed of the 5 th years, the loss are no longer compensated

PPH 25 in Special Matter 1. Assessable entitled for loss compensation

PPH 25 in Special Matter 2. Assessable has irregular earnings • The amount of installment payment is the same after deducted by act 21, 22, 23, and 24 • The tax bases is the net income deducted by the

PPH 25 in Special Matter 2. Assessable has irregular earnings

PPH 25 in Special Matter 3. The past annual tax notice (SPT) submitted after due date a. b. The installment payment for first 3 month is, as many as the latest previous year. After 3 month is recalculated by several special term as follow: • The amount of income tax debt, are after deducted by act 21, 22, 23, and 24 • If the SKP has been issued the, amount are changed and applied after the SKP issued • If there is a compensation, the amount is the same with previous amount of tax debt (after deducted by the loss compensation) • If there’s irregular income, the amount is the same with previous amount of tax debt (regular income only after deducted by act 22, 23, 24) All of these 4 condition were divided by 12 months

PPH 25 in Special Matter 3. The past annual tax notice (SPT) submitted after due date 2 201 y a d. M te it Subm • installment for January - March 2012 8, 000/month (as many as December 2011) • installment for April - May 2012 8, 000/ month (as many as December 2011)

PPH 25 in Special Matter 4. Assessable receive additional period for submit the SPT For months starting annual tax return deadline until the month before the submission of the annual tax return, the amount of income tax installments equal to the magnitude of Article 25 Income Tax Article 25, which is calculated based on the annual tax return while the taxpayer submitted the application for license renewal

PPH 25 in Special Matter 4. Assessable receive additional period for submit the SPT For months after the taxpayer submit Annual Income Tax, Income Tax Article 25 of the installment amount recalculated based on the annual tax return and applies retroactively from Buln annual tax return deadline.

PPH 25 in Special Matter 4. Assessable receive additional period for submit the SPT

PPH 25 in Special Matter 4. Assessable receive additional period for submit the SPT

PPH 25 in Special Matter 5. Assessable to correcting their income tax SPT If in the current year itself correct Taxpayer Annual Income Tax last tax year, the amount of Income Tax Article 25 is calculated based on annual tax return income tax return. Retroactive rectification and starting in the tax return deadline. Calculating amount of installment income tax return based on Article 25 keep watching the SPT correction loss compensation provisions and conditions of irregular

PPH 25 in Special Matter 5. Assessable to correcting their income tax SPT

PPH 25 in Special Matter 5. Assessable to correcting their income tax SPT

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes Is caused by work change of work performance and there will affect to the higher and lower income and PPH. So the owner can propose a letter using this procedure: Write a proposal to tax office The calculation of new Tax debt must be attached If the confirmation are not received by assessable at most 1 month, it means the proposal accepted

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes For the new tax: Bank, BUMN, BUMD, tax for entering obligation and the other taxes are based on the act which make the monetary period report. Tax acts for certain individual entrepreneur with the highest 0, 75%. Pph act 25 for the new assessable (private & institution) which is gain their first revenue in current tax year. Installment of PPh act. 25 a month are calculated a years from net income. If the assessable held an accounting and from then on calculated the amount of net income per month If from assessable calculation the net income are unknown, the tax base are at the gross circulation.

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes Taxpayer Bank and Leasing With The Option The installment of income tax article 25 for the taxpayer and the bank lease option rights is income tax is calculated based on the application of the general rate of profit or tax loss last quarterly financial statement net annualized article 24 of the Income Tax paid or payable in foreign country, divided by 12.

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes PPh Article 25, BUMN and BUMD The installment of income tax article 25 for Taxpayer enterprises and enterprises with a name and in any form, except Taxpayer bank and lease with option rights is equal to the income tax is calculated by applying the general rate of profit or loss according to RKAP fiscal tax year concerned has ratified the AGM, reduced by cutting and collection of Income Tax Article 22 and Article 23 and Article 24 of Income Tax.

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes Taxpayers Listed, and other taxpayer under the provisions of the legislation should make periodic financial reports The amount of income tax installments for taxpayers article 25 went public and other taxpayers are required to make under the terms of periodic financial statements, amounted to income tax lawyer, calculated based on the application of the general rate of income tax losses in the financial statements an annualized basis last reduced by cutting and collection of income tax article 22 & 23 and 24 who paid payable in foreign countries for the past fiscal year, divided by 12.

PPH 25 in Special Matter 6. the assessable businesses or working activities are changes PPh pasal 25 bagi wajib pajak orang pribadi pengusaha tertentu individual taxpayer's particular entrepreneur is an individual taxpayer who carries on business in ibdang trade has more than one place of business or place of business has different domicile address

DEPOSTING AND REPORTING OF PPH PASAL 25 1. 2. 3. PPH pasal 25 should be paid at least no longer than 15 month of calender when the time of tax finished the tax receiver asked to submit the SPT at least 20 days when tax finished for those of the tax receiver of the entrepeneur. There are many policies that existing followed as : • if the tax receiver owned some of office nearby with tax office. They should registered their ow office into the tax services office that involved respectively. • the tax receiver that owned more than one office inside the tax office area, they should registered their office in every inside the tax services office in every location where the both offices located • Annual SPT PPh should be delivered to the tax office that located inside the tax receiver domicile which is limited just like the second point that mentioned before

PPH PASAL 25 FOR THE TAX RECEIVER TRAVELLING OUTSIDE OF COUNTRY • The local individual tax receiver that doesn’t have the NPWP and reached the age of 21 years old that travelled to the other countries should pay the tax. • the amount of FLN (fiskal luar negeri) that should be paid by the individual tax receiver are: 1. Rp 2. 500. 000 (two million five hundred thousand rupiah) for every individuals that used the aeroplane for travelling outside of the individual’s country. 2. Rp. 1. 000 (one million rupiah) for every individuals that travelling outside of the country with ship, etc

THE EXCEPTIONAL OF NPWP PAYMENT FOR THE TAX RECEIVER WHOM WILL TRAVEL AROUND OUTSIDE OF COUNTRY 1. 2. 3. 4. 5. 6. The stranger whom live for 183 days during 12 month or doesn’t live in indonesia, showing his/her visa The diplomatic officials and the consulate or the foreigner officials. Including their fammilies The delegation of international organization whom they are not included of the PPH subject The indonesian citizens whom stay outside of indonesia permanently. which have the legitimate document as the citizen of the related countries Jemaah haji which organized by the authorized party, just only showing the list of jamaah haji name that lead by the leader of the jemaah and BPIH. The individual that travelling across country via the border of R. I territory

THE EXCEPTIONAL OF NPWP PAYMENT FOR THE TAX RECEIVER WHOM WILL TRAVEL AROUND OUTSIDE OF COUNTRY 7. 8. 9. The worker of indonesian citizen (WNI) or known as TKI. With only showing their KTKLN The foreigner students that stay inside indonesia in order to study with recommenation from universities and don’t received the earning from indonesia The foreigner whom stays in indonesia and doesn’t received the earning from indonesia that commited: the foreigner labours that work in island of batam, bintan and karimun. As long they cuted the PPH by the work distributor 1. observation in science and culture under the coordination of goverment institute 2. an assignment as the member of religious mission and humanitarian mission under the coordination of involved institute 10. The disabillity people or the sick people which they will have a treatment outside indonesia that supported by social organization including one accompanion. 11. The member of art mission, cultural mission, atlhletic mission or religious mission that representate the indonesian republic for international world. by submitting the certificate of approvement from the related minister

THE PROCEDURES OF EXCEPTIONAL OF FLN PAYMENT FOR INDIVIDUAL TAX RECEIVER WHOM THEY WILL TRAVEL ACROSS COUNTRY • The excpetions of FLN payment duty by one individual whom will travel across the country done by the procedures below: 1. 2. 3. 4. For the tax receiver that came from domestic country up to 21 years old or more, given by checking of NPWP by UPFLN at least 3 days before the departure. For the tax receiver that doesn’t owned NPWP (wife/husband, family member in lineage) given by validating of NPWP checking which given the total guarantee by UPFLN. For expection number 1 until 7, given directly by UPFLN from tax directorate that works in airport or harbor. Including the domestic tax receiver individual which is under 21 years old For expection number 7 until 13, given by the publishing of SKBFLN by UPFLN from tax directorate that assigned in airport or harbor. Or supporrted by KPP that commited the FLN procedures or another place that settled by tax director