Government Regulation Number 23 In 2018

What Is The Purpose 23?

And highlight changes

As a result of evaluation of government regulation number 46 of 2013 and to provide convenience, simplicity and to encourage people to play a role in economic activities, new income tax (PPh) scheme must be arranged for income from businesses that are received or obtained by taxpayers (WP) who have certain gross circulation.

What changed?

1. Tariff reduction.
2. Addition of terms and conditions.
3. The right to choose to be subject to final PPh or not (with a notification obligation).
4. Adjustment of the criteria for corporate taxpayers.
5. Adjustment of exclusion of subjects subject to PP.
6. Affirmation of turnover for WP OP PH & MT status.
7. Addition of deposit method: cut/collected.

What’s fixed?

1. Turnover Limit.
2. Tax Base.
3. Tax Object Exception.

PPh Type PP 23

In monthly deposit

Income tax regulated by PP number 23 of 2018 is still included in:

Income tax article 4 paragraph (2), is nature FINAL

The monthly deposit referred to is income tax article 4 paragraph (2), not Income tax article 25 and payable in each business place.

Subject & Time Period

Who is subject to and how long?

WPs that are subject to income tax according to government regulation number 23 of 2018 are;

                                The Peroid Of Imposition Is:

Taxpayer

Private Person                                   7 Years Tax

Certain Body

Limitid Liability Company                  3 Years Tax

Cooperative, CV & Firm                      4 Years Tax

Who receives or obtains  income from business with gross circulation does not exceed Rp.4,8M in 1 (one) tax year.

Counted Since:

Registered taxpayer’s tax year, for registered taxpayers since the enactment of PP 23 of 2018; or

This PP tax year applies, for registered taxpayers before the enactment of PP 23 of 2018.

If it exceeds Rp.4,8M in the current year or over the period?

Then the income from the business received or obtained by the taxpayer on Tax Year – The Next Tax Year subject to general conditions of income tax based on rates:

• Article 17 paragraph (1) letter a for individual taxpayers;
• Article 17 paragraph (2a) or article 31E of the income tax law for corporate taxpayers.

Which Is Not Worn

Based on PP No. 23 of 2018

1. Taxpayer who chooses to be subject to general provisions of income tax based on the rate of article 17 paragraph (1) letter a, Article 17 paragraph (2a) or Article 31E of the income tax law;

If chosen, the WP must notify the director general of taxes and for the tax year-the next tax year can no longer be subject to PPh berdasarkan on PP Number 23 of 2018.

1. Community partnership (CV) and firm that:

1. Formed by several personal taxpayers who have special skills; and
2. Submit similar services with services with free work;

1. Corporate taxpayer who receives PPh facilities:

1. Article 31A Income tax law; or
2. Government regulation number 94 of 2010 concerning the calculation of taxable income and repayment of income tax in the current year along with changes or substitutes;

1. Permanent Establishment (BUT)

Object PPh PP 23

What are the issues?

Who are subject to this income tax (PPh) is income from business                                                the compulsory received or obtained must be with gross circulation (turnover) that does not exceed Rp.4,8 billiion in 1 (one) tax year.

Tax Year is a period of 1 (one) calendar year unless the taxpayer uses a book year that is not the same as the calendar year.