CHAPTER I

INTRODUCTION
1.1 Background
Income tax is the tax levied on the tax object on the income it earns. Income tax will always be
subject to a person or business entities who are taxpayers who accept income. every service
companies and non services as taxpayers are required to pay taxes. For the company, tax is a
source of expenditure in the absence of direct benefits for the company. Law no. 7 of 1984
concerning income tax (PPh) effective from 1 January 1984. This law has been amended several
times and was last amended by law number 36 of 2008. The income tax law regulates the
imposition of income tax to subject the tax with income received or earned in the tax year.
Subjects of taxes that receive or earn income, in the law of Income referred taxpayers. The
taxpayer is taxed on the income received or accrued during the tax year or may also be taxed for
income in the taxable year part if his subjective tax obligations are incurred or expired in the tax
year

1.2 Problems
1. What is the definition and how is the basic concept of Income Tax Payable 21, 22, 23, 24,
26, and PPh ps 4 verse 2 final?
2. What are the legal basis of PPh pot / put?
3. How to explain the variables in the calculation of PPh pot / put, PTKP, cost of office, etc?
4. How does the procedure and calculation, deposit, and reporting PPh pot / put?
1.3 Goals
1. To know the understanding and how the basic concept of PPh pot / put ps 21, 22, 23,24,
26 and final PPh pasa 4 paragraph 2 final?
2. To know the legal basis PPh pot / put
3. To know the explanation about the variables in the calculation of PPh pot / put, PTKP,
Cost Position, etc ..
4. To know the procedures and calculation, deposit, and reporting PPh pot / put
1.4 Benefits
1. Can understand understanding and how the basic concept of Income pot / put article
21,22,23,24,25,26, and income tax Article 4 paragraph 2 final
2. Can understand the legal basis of PPh pot / put
3. Can understand about the variables in the calculation of PPh pot / put, PTKP, Cost
Position, etc.
4. Can understand about the procedures and perform calculations, deposits, and reporting
PPh pot / put

CHAPTER II
DISCUSSION

2.1 The Basic of PPh

Article 21 of Income Tax is a tax on income like salary, wages, honorarium, allowances
and other payments by its name and in free form, in respect of employment or
occupation, the services and activities undertaken by private persons. Domestic tax
subject, as referred in Article 21 of the Income Tax Law.

Article 22 of Income Tax is the payment of income tax in the year of sale that collected
by the government treasurers, the institution in government or private sector and the
taxpayers of corporate to collect taxes from the government of the sale of luxury goods.

Article 23 of Income Tax regulates the withholding tax on income received or obtained
by domestic taxpayers and permanent establishment derived from capital, delivery of
services or other activities that had been cut by paid Article 21 of Income Tax, available
for payment, or the payment is on due by the government agencies, a tax subject of a
domestic entity, event organizer, a permanent establishment, or the representation from
the overseas company.

Article 24 of Income Tax regulates the calculation of the tax amount on the paid income
or overseas payable which can be credited against the payable of income tax on the all
domestic taxpayer's income.

Article 26 of Income Tax regulates the cuts of income which derived in Indonesia that
received by the foreign taxpayer (either an individual or an entity) other than a Permanent
Establishment.

Article 4 paragraph 2 of the final Income Tax regulates the income tax on interest, lease,
and remuneration of services consultant and construction services that regulated by the
government regulations.
2.2 Basic Legal Income Tax pot/put

1. The Law Number 6 year 1983 concerning General Provisions and the Procedures of
Taxes as amended on the latest amendment of the Law Number 28 Year 2007.

2. The Law Number 7 year 1983 regarding Income Tax as amended recently by The
Law Number 36 Year 2008.

3. The Decree of the Minister of Finance of the Republic of Indonesia No. 541 /
KMK.04 / 2000 as already amended several times by the regulation of the Minister of
Finance of the Republic of Indonesia Number 184 / PMK.03 / 2007 on the
Determination of the due payment and Deposit, determined the place to pay taxes and
the payment procedures, Deposits and Reporting taxes, and the Procedures for Credit
and Postponement of Tax Payments.

4. The Regulation of The Minister of Finance No. PMK-254.03 / 2008 regarding

Stipulation of Income Section in respect of work of Daily Employees and Weekly
Employees and Other Non-Permanent Employees who are not subject to Income Tax.

5. The Regulation of Directorate General of Taxes Number PER-31 / PJ / 2009 as

amended by The Regulation of the Directorate General of Taxes Number PER-57 / PJ
/ 2009 concerning Technical Guidelines of Procedures for Cutting, Depositing and
Reporting of Income Taxes Article 21/26.

Based on the provisions of the Law Number 36 Year 2008 regarding the fourth
Amendment of the Law Number 7 of 1983 regarding Income Tax and The Regulation
from the Director General of Taxes number PER-31 / PJ / 2012. Concerning about the
Technical Guidelines for the Procedures for Cutting, Deposit and Reporting of Income
Taxes Article 21 and/or Article 26 in connection with the work of personal services and
activities.
2.3 Variables in the calculation

Non-taxable Income
The current amount of PTKP in the year is:
1. Rp. 15.84 million for individual taxpayers.
2. Rp. 1.320.000 the additional for the married taxpayer.
3. Rp. 15. 840.00 the additional for a wife whose the income is combined with her husband's
income, with the provisions of:
a. The wife’s Income shall not be solely received or obtained from one employer that had
been cut by taxes based on the stipulation in the article 21 of the income tax law
b. The wife's job didn’t have related with her husband job or other families.
4. Rp. 1,320,000 the additional for each blood relative and semenda relative in straight line one
degree and full dependent of adopted children (max 3 person)

Gross Income
Gross Income (Gross) is a type of income subject to tax withholding as stipulated in Article 21
and Income Tax Article 26, may be classified as follows:
1. Regular income (regular), is income received by employees regularly every month in the
form of salary, allowances, overtime, food allowance, transportation money and the like.
2. Non-routine (annual) income, is other types of income received by employees in
indefinite time and generally once or more in a year, in the form of; holiday allowances
(THR), bonuses, tantiems, annual incentives, and the like.
3. Acceptance of natura, is other types of income received by employees in the form of
physical / objects, in the form of the distribution of basic foods, assistance side-dishes,
additional nutrients, catering facilities and the like, in the calculation of income tax,
acceptance of rules must be in convention, in units value / price.
Insurance premium, ie insurance premium on behalf of employee paid by employer to related
institution. Form of: premium jamsostek, AKDHK premium, health insurance premiums and the
like.
Position allowance
The position allowance is one of the deductions in calculating article 21 of income tax for
permanent employees as regulated in Article 21 paragraph (3) of the income tax law. Thus, every
permanent employee remains entitled to this deduction. "Position" does not refer to a particular
formal position in the firm and the institution. From ordinary staff to directors are entitled to
deductions for this position allowance.

Pension Cost
Based on Article 21 paragraph (3) of the law of income tax, the article 21 of income tax withheld
for pensioners is the amount of gross income less the pension cost and non taxable income. In the
sense of pensioners including also recipients of old-age benefits or old-age savings.
Such as the cost of office for permanent employees. The amount of the pension cost is also
stipulated in the regulation of the minister of finance number 250 / PMK.03 / 2008 regarding the
cost of the position or pension costs that can be deducted from the gross income of permanent
employees or pensioners
Based on the regulation, the amount of pension cost that can be deducted by gross income for the
withholding of Article 21 of Income Tax for pensioners paid on a regular basis shall be set at 5%
of gross income, not more than Rp. 2,400,000 a year or 200,000 a month.
2.4 Procedures in Doing Calculations

Income tax article 21

Salary 3,000,000.00
The Insurance for Work Accident 15,000.00
The Premium of death insurance 9,000.00
Gross Income 3.024.000.00

Reduction
1. The Position Allowance 5% x3.024.000 = 151.200.00
2. Pension contribution 50,000.00
3. Contributin for The Old 60,000.00
     261.200.00

Net income in a month 2,762,800.00

Net income in a year 12x2.762.800.00 33.153.600.00

PTKP
-For Tax Payer 24.300.000.00
- The Additional of Tax Payer Mated 2.025.000.00
(26.325.000.00)

Yearly Taxable Income 6,828,600.00

Rounding 6,828,000.00

Income Tax Payable

5% x6.828.000.00 = 341.400.00
Income Tax Article 21 of July
341.400.00: 12 = 28.452.00
Income Tax Article 22
Reporting is done by submitting SPT Period to the local KPP no more than 20 days after the Tax
Period ends. In the event that the due date of the deposit or the final reporting date of Article 22
of the Income Tax shall coincide with a holiday, including Saturday or public holiday, depositing
or reporting may be made on the subsequent business day.

Income Tax Article 23

When Payable, Deposit and Reporting of Article 23 of Income Tax
1. Income Tax Article 23 shall be payable at the end of the month in which the payment is made,
is available for payment, or has been due for repayment, depending on the first events that
occurred.
2. Income Tax Article 23 shall be paid by the Tax Withholder no later than the tenth of the
calendar month next following the month in which the tax becomes due.
3. SPT period shall be submitted to the local Tax Office, no more than 20 days after the tax
period expires.

Income Tax Article 24

Procedures when calculating the foreign tax credit:

1. Incorporation of all income
2. Loss can not be compensated
3. Maximum limit of foreign tax credit
4. Foreign income comes from several countries
5. Taxpayers receives income that subject to final income tax

Income Tax Article 25

How to calculate the amount of Income tax article 25 :

The amount of tax installment in the current year which the WP pays out for each month shall be
the amount of income tax payable in accordance with the annual tax letters of income tax of the
previous tax year less:
1. Withholding tax as referred to in Article 21 and Article 23, and income tax collected as
referred in Article 22
2. The income tax payable or overseas owed may be credited as referred in Article 24
Final Income Tax Article 4 (2)

Final withholding or income tax collection. In the provisions of the current income tax, there are
several types of income (tax object) that subject to final withholding or tax collection. Income
subject to final withholding or tax collection is still reported in the Notice Letter (SPT) only in
the amount of which is not added to other income. The withholding tax is not calculated as a tax
credit. PPh (Final) = 20%xbruto
 CHAPTER III
CLOSING

3.1 CONCLUSION
1. Income tax is a tax that regulates the imposition of income tax on the subject of tax in respect
of the income received or accrued in the tax year. The tax subject is taxed when receiving or
earning income. Subjects of taxes that receive or earn income, in the law of Income referred
taxpayers. A taxpayer is taxed on the income received or accrued during a tax year or may also
be liable for income in the taxable year part if his subjective tax obligations are incurred or
expired in the tax year.
2. There are some basic tax laws of pot / put income
3. Variables in the calculation of income tax there is the cost of position, pension costs, gross
income and non-taxable income or abbreviated as PTKP
4. Income Tax Article 21 and 26 shall be the method of redemption of income tax in the current
year through tax deductions on income received or obtained by a resident Individual Taxpayer in
respect of employment, services or activities. Income Tax Article 22 regulates how revenue is
calculated on the import of goods. Income Tax Article 23 provides for the withholding and
collection of taxes for a permanent establishment. Article 24 regulates the taxation abroad.
Article 25 regulates the monthly installment of taxpayers. Calculation formula of Income Tax
(Final) = 20% x bruto.