What is PPh tax Indonesia?
The basic tax obligation is Income Tax (Pajak Penghasilan or PPh) which is progressive and applied to both individual(s) and enterprises. Withholding Tax (Pajak Pemotongan) system is used in Indonesia to collect the income tax.
What is PPh 23 tax Indonesia?
What is Income Tax Article (PPh) 23? Income Tax Article 23 is a withholding tax, where certain types of income are withheld by the tax collector during a transaction/transfer with a person or organization who is liable of taxation (taxpayer).
What is income tax article 21?
Withholding tax under Article 21 Under the income tax (Pajak Penghasilan – PPh) law, Article 21 states that employers have to withhold tax from the salary and severance payments paid to employees and pay the tax to the State Treasury on the employee’s behalf.
What is PPN and PPh in Indonesia?
VAT and Goods and Services Tax (GST) are applied to most goods and services in Indonesia. VAT and GST taxes are called Pertambahan Pajak Nilai or PPN. PPN is a ten percent, point-of-sale tax that extends to services supplied by foreign taxpayers outside Indonesia if these services benefit Indonesia.
How much is Indonesia corporate tax?
The corporate income tax (CIT) rate in Indonesia is 25%. For fiscal year 2020/2021, the CIT rate is 22%, and for the year 2022 onwards, the CIT rate will be 20%.
Who pays withholding in Indonesia?
Indonesian income tax is collected mainly through a system of WHTs. Where a particular income item is subject to WHT, the payer is generally held responsible for withholding or collecting the tax.
Are trusts Recognised in Indonesia?
Even if there is no law to provide for the creation of trusts in Indonesia, the local government does recognize international trusts. It is possible for both foreign and Indonesian citizens to create trusts in other jurisdictions with the purpose of leaving assets located in Indonesia to the beneficiaries.
How does Indonesia treat dividend income?
Dividend income Dividends received from an Indonesian limited liability company are subject to final income tax at a rate of 10%. However, it becomes non-taxable if the recipient is a domestic individual taxpayer whose dividends are reinvested in Indonesia within a certain period.
What is the PPh 21 calculation method used in the above calculation?
In general, there are 3 methods that can be used to calculate PPh 21, namely the Net, Gross, and Gross Up methods. Before calculating, it is better to look at the PPh 21 tariff layer imposed on taxpayers. Taxpayers with annual income above IDR 250,000,000 to IDR 500,000,000 are subject to a tax rate of 25%.
What is the tax rate in Indonesia?
25%
Generally, the VAT rate is 10 percent in Indonesia….Tax system of Indonesia.
Individual Income Tax | |
---|---|
• Up to IDR 50 million | |
• Over IDR 250 million to IDR 500 million | |
Tax Rate | 25% |
• Over IDR 500 million |
What is the import duty in Indonesia?
Most Indonesian tariffs on non-agricultural goods are bound at 35.5 percent, although tariff rates exceed 35.5 percent or remain unbound on automobiles, iron, steel, and some chemical products. In the agricultural sector, tariffs on more than 1,300 products have bindings at or above 35.5 percent.
How much is income tax in Indonesia?
Individual tax rates
Taxable income (IDR*) | Tax rate (%) |
---|---|
Up to IDR 60 million | 5 |
Above IDR 60 million to IDR 250 million | 15 |
Above IDR 250 million to IDR 500 million | 25 |
Above IDR 500 million to IDR 5 billion | 30 |