PRESIDENT OF THE REPUBLIC OF INDONESIA

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By adhering to the principle of legal certainty, justice, and simplicity, then the direction and purpose of the Act of Number 7 of 1983 as amended by the Law No. 7 of the Year of I991 is as follows:

a. Towards the nation's independence in state financing and development financing whose primary source is derived from tax revenues;

b. Further provide legal and justice certainty for the public in participating in development financing according to its ability;

c. Support of government policy in order to increase growth, development of development, and investment in all regions of the Republic of Indonesia;

d. It supports increased export, especially non-oil exports, processed goods and services in order to increase the acquisition of devisa;

e. Improve the development efforts of small businesses to optimize the development of its potential, and in order of poverty alleviation;

f. Supports the development of human resources, science and technology, the preservation of ecosystems, natural resources and the environment of life;

g. Improving the creation of an increasingly capable and cleaner taxation apparatus, increased service to Wajib Tax including simplification and ease of procedure in the fulfillment of taxation obligations, increased scrutiny over implementation the fulfillment of such tax obligations, including the increase in enforcement of the applicable law provisions.

By landscape in the direction and purpose of the refinement, the need to be made changes to some of the provisions in the Law Number 7 Year 1983 se-how has been amended with Law Number 7 Years 1991, with the following points:

a. In order to increase the nation's independence in the financing of national development, the provisions provided the activities of the Ecclassification and the intensification of the tax imposition;

b. Provisions ...

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b. The provisions of the Tax Subjects are regulated more so that they can follow the social development of the economy and the development of business activities that arise and thrive in society;

c. The provisions of the Tax Object are set up in more detail, clear and firm to further provide legal and justice certainty in the tax imposition;

d. In order to support the development of science and technology, the expenditure for corporate research and development may be charged as a fee;

e. To improve the quality of human resources, spending on training costs, interns, and students ' duties can be charged as a fee;

f. In order to improve the policy of the government to increase the growth and alignment of national development in all areas, it can be given a taxation facility to the Tax Wajib which conducts capital cultivation in certain areas of business. and/or in certain areas;

g. Compensation for longer than 5 (five) years but not more than 10 (ten) years arranged in accordance with government policy in order of national development arrangement;

h. In order to support government programs in the preservation of ecosystems, natural resources and living environments, it is confirmed that waste processing charges may be charged and regulated regarding the formation or backup of reserves for reclamation costs;

i. In order to provide the Compulsory Taxes in terms of the calculation of the depreciation of the property owned and used in the effort and more aligning the bookkeeping of the Tax for fiscal importance, then to Wajib Tax is given the freedom to selecting a depreciation method for tangible property instead of building;

j. Wisdom in the field of tax rates is performed by rearranging the magnitude of the tax revenue layer and the magnitude of the tax rate layer by maintaining the progresivity of the tariff imposed upon Wajib Tax of the personal and Wajib Body tax, by considering the opportunity to develop business activities and venture world competition in the era of globalization;

k. Preventing ...

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k. Preventing tax evasion through delays of profit sharing in undefined time over overseas capital planting;

l. Expansion in the cutting and tax rate system to improve Wajib Tax compliance, delve into available fiscal potential, and improve the "self assessment" system through more effective and efficient utilization of data;

m. In order for the ease and simplicity of the tax imposition and to improve Wajib Tax's compliance, the final tax is regulated for certain income-income.

ARTICLE BY SECTION

Article I

Figure 1

Article 1

This Act governs the imposition of income tax on the Tax Subject in respect of the income received or obtained in the tax year. The subject of such taxes is taxed in the event of receiving or obtaining income. The subject of the tax that accepts or obtained income in this Act is called Wajib Tax. Taxpayers are taxed on income earned or earned for a year in taxes or taxes on income in the tax year, where the subject's tax liability begins or ends in tax years.

The tax year in this Act is a taxable year, but Wajib Tax can use the year of the book not equal to the year of the tawim, throughout the year the book covers a period of 12 (twelve) months.

Figure 2

Article 2

Verse (1)

The tax subject understanding includes people personal, undivided inheritance as a single entity, body, and form of permanent effort.

The letter a ...

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Letter a

Personal persons as Tax Subjects may reside or reside in Indonesia or outside Indonesia. A legacy that has not been divided as a single entity is the Subject of a replacement Tax, replacing those who are entitled to the heir. Legacy appointments that are not yet divided as replacement Tax Subjects are intended for tax imposition of income derived from that legacy.

The letter b

The definition of the body as the Subject of Tax consists of A limited liability company, other company, state owned enterprise and business entity belonging to the area, association, association, firm, cooperative, cooperative, foundation or organization of similar types, institutions, pension funds, and entity forms. other.

The state-owned enterprise and the county-owned business entity is The subject of the Tax regardless of its name and form, so that any particular unit of the government body, e.g. agency, body, and so on are owned by the Central Government and the Local Government that runs the business or performs activities To earn income is a Tax Subject.

The Society as a Tax Subject is a society that runs the business or performs activities to earn income and/or provide services to members. In terms of association including association, union, society, or bonding of the parties of the same interests.

The letter c

See the terms of the paragraph (5) and its explanation.

Verse (2)

Subject Taxes are distinguished between the domestic tax subject and the subject of foreign taxes. The subject of the domestic tax becomes Taxpayer if it has received or obtained an income, while the Subject of Foreign Tax is as well as the Tax Wajib, in respect of the income received from the income source in Indonesia or acquired through a fixed form of effort in Indonesia. In other words, Wajib Tax is a person or body that has fulfilled subjective and objective obligations.

The difference ...

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The important difference between the domestic tax of Wajib and the State Tax Wajib is located in the fulfillment of its tax obligations, among other things:

a. The taxpayer in the country is taxed on the income either received or obtained from Indonesia and from outside Indonesia, while the foreign tax of the country is taxed only on income from income sources. Indonesia.

b. Domestic taxes are taxed based on neto income at common rates, while the foreign tax rate is essentially taxed based on gross income with commensurate tax rates.

c. A mandatory domestic tax is required to deliver an Annual Notice of Notice as a means to establish a debt owed in a tax year, whereas a foreign tax is not required to deliver an Annual Notice of Notice, due to an obligation. The taxes are filled through final tax cuts.

For the Overseas Taxes that run the business or conduct activities through the form of a fixed effort in Indonesia, the fulfillment of its tax obligations is equed with fulfillment. Tax liability in the country as set in This Act and the Law on the Terms of General and Taxation.

paragraph (3)

The letter a

In principle the person of the person who is the Subject of Tax in the country is a private person who resides or is In Indonesia. In the sense that the people living in Indonesia are the ones who have the intention to take place in Indonesia. Whether a person has the intention to reside in Indonesia is weighed according to circumstances.

The existence of a private person in Indonesia is more than 183 (one hundred and eighty-three) days should not be in a row, but determined by the number The person's day is in Indonesia within 12 (twelve) months since its arrival in Indonesia.

The letter b ...

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Letter b

Quite clear.

The letter c

The undivided heritage left by the private as the domestic Tax Subject is considered the domestic Tax Subject This Act follows the status of an heir. As for the exercise of the fulfillment of its tax obligations, the inheritance supersede the obligations of the rightful heirs. If such a legacy has been divided, then its tax obligations turn to an heir.

The undivided heritage left by the private as the Foreign Tax Subject who does not run the business or conduct activities through a fixed form of effort in Indonesia, it is not considered a replacement Tax Subject because the tax imposition of the income received or obtained by the person is intended to be attached to its object.

Verse (4)

The letter of a and letter b

The foreign tax subject is a private person or body that is housed Or take a position outside of Indonesia who can either receive or earn income from Indonesia, either through or without going through the form of a fixed effort. Persons who do not reside in Indonesia, but are in Indonesia less than 183 (one hundred and eighty-three) days in the term of 12 (twelve) months, the person is the subject of an external tax. If income is accepted or acquired through a fixed form of business, then against a person or body is taxed through the form of a fixed effort, and the person or body remains the subject of a foreign tax. Thus the form of such a fixed effort replaces the person or body as the Foreign Tax Subject in fulfilling its tax obligations in Indonesia.

In terms of such income is received or obtained without going through the form of However, the tax imposition is made directly to the subject of the foreign tax.

Verse (5) ...

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Verse (5)

A form of effort continues to contain the meaning of a place of business, which can be land and building including machines. and equipment.

The place of the venture is permanent and is used to conduct business or conduct activities of non-permanent or unfounded persons or bodies that are not located in Indonesia.

The understanding of the form of effort continues to include a person or person as an agent Neither is the person who is not living or unfounded.

A private person who is not residing or unfounded and is not. The position in Indonesia cannot be considered a fixed form of business in Indonesia if a person or person in the process of running an undertaking or performing activities in Indonesia uses an agent, broker or an intermediary who has a position. free, as long as the agent or intermediary is in fact acting completely in order to run its own company.

The insurance companies established and housed outside Indonesia are considered to have a fixed form of business in Indonesia if the insurance company receives a premium payment. Insurance in Indonesia or the risk in Indonesia through an employee, representative or agent in Indonesia. Taking the risk in Indonesia does not mean that the events that resulted in the risk took place in Indonesia. What needs to be noticed is that the party is in place of residence, or position in Indonesia.

Verse (6)

The determination of the private person ' s residence or an important seat of position to set the Office Which Tax Service has the jurisdiction of the income that is received or acquired by the person or persons.

Basically a private person or body seat is determined according to the circumstances of which the person is. Actually. Thus the determination of residence or place of office is based not only on considerations that are formal, but rather based on reality.

Some ...

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Some things the Director General of Tax needs to consider in determining a person's residence or seat of the body among other domicile, residence address, a family residence, a place to run a principal effort or other things that need to be considered for the easier implementation of tax liability.

Figure 3

Article 2A

Income tax is a type of subjective tax that is The tax liability is attached to the subject of the tax concerned, which means liability. Such taxes are intended not to be devolve to other Tax Subjects. Therefore, in order to provide legal certainty, the determination of the start and end of the subjective tax obligation is important.

Verse (1)

The subjective tax obligations of the private person residing in Indonesia begin on when he was born in Indonesia. For private persons who are in Indonesia more than 183 (one hundred and eighty-three) days in the term of 12 (twelve) months, the subjective tax liability begins since the first day he is in Indonesia. The subjective tax liability of the private person ends at the time of his death or leave Indonesia for ever.

Understanding leaves Indonesia for ever having to be associated with real things at a time when the person leaves Indonesia. If by the time he left Indonesia there was evidence -- concrete evidence of his intention to leave Indonesia for ever, then at that time he would no longer be the subject of domestic tax.

Verse (2)

It is quite clear.

Verse (3)

For private persons who are not housed and are in Indonesia no more than 183 (one hundred and eighty-three) days, and unfounded bodies and non-positions in Indonesia, which run the business or conduct activities in Indonesia through a fixed form of business, tax liability The subject begins at the time the fixed form is in Indonesia and ends at a time when the fixed form is no longer located in Indonesia.

Verse (4) ...

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Verse (4)

A person who is not in residence or is in Indonesia no more than 183 (one hundred and eighty-three) days and unfounded bodies and not housed In Indonesia and not running an effort or conducting activities through the form of a fixed effort in Indonesia, it is the subject of foreign taxes as long as the person or body has an economic relationship with Indonesia. Economic relations with Indonesia are considered to exist if the person or person receives or earns income from an income source in Indonesia.

The subjective tax liability of the person or the body begins When a person or body has an economic relationship with Indonesia, it is accepting or gaining income from the sources in Indonesia and ending at a time when a person or person is no longer an economic relationship. with Indonesia.

Verse (5)

The subjective tax liability of the inheritance It is not yet divided, beginning in the time of the undivided legacy, at the time of the death of the heir. Since then the fulfillment of its tax obligations is attached to that legacy. The subjective tax liability of the inheritance ends at the time the inheritance is divided to the heirs. Since then the fulfillment of its tax obligations turn to heirs.

Verse (6)

There can be a personal person to be a Tax Subject not for a full term tax year, for example a person who begins to be a Subject Taxes on the middle of the tax year, or that leaves Indonesia for ever in the middle of the tax year. The less than one year of the tax year is called the tax year that replaces the tax year.

Figure 4

Article 3

The letter and letters

In accordance with international conduct, the country's representative body Foreign ministers and consulates and other officials, excluded as Tax Subjects where they represent their country.

Exception ...

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Exception as Tax Subject to those officials does not apply if they obtain another income outside of office or they are Indonesian citizens.

Thus if a representative official of a foreign country acquires another income in Indonesia outside of office, then. It includes a tax subject that can be taxed on any other income.

But if the state of origin that the official gives tax exemption to the Indonesian representative of another income outside of office, then applies. asas reciprocity.

Letter c

Quite clear.

The d

It is fairly clear.

The number 5

Article 4

paragraph (1)

This legislation follows the principle of rejuvenation of income in a broad sense, that is. that tax is imposed upon any additional economic capability that is received or acquired Taxpayer of any of its origin may be used for consumption or increase in the wealth of the Tax.

The income understanding of this Act does not pay any attention to the income of a particular source, but in the presence of extra economic capability. Additional economic capabilities that are accepted or acquired by Wajib Tax are the best measure of the ability of the Tax Mandatory Service to participate together to shoulder the costs of the government for routine and development activities.

Seen of the addition of the economic capability to Wajib Tax, earnings can be grouped into:

-earnings ...

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-earnings from work in working relationships and free work such as salary, honorarium, income from physician practice, notaries, actuaries, accountants, lawyers, and so on;

-earnings of business and activities;

-income from capital, which is a treasure or non-motion treasure such as interest, dividends, royalty, rent, wealth sales profits, or rights that are not used for business, and others. forth;

-other earnings, such as debt exemption, gifts, and other Et cetera.

By its use, the income can be used for consumption and can also be supported to increase the wealth of Wajib Tax. As the Act follows a broad income definition, all types of income received or obtained in a tax year are combined to obtain the basis of the tax imposition. Thus, if in a year of taxation of a business or activities suffered a loss, the loss is compensated by other income (horizontal compensation), with the exception of the losses suffered abroad. However, if any type of income is taxed at a final rate or is exempt from the Tax Object, then the income should not be combined with any other income imposed by the general fare.

The income examples referred to in this provision are intended to clarify the definition of an extensive income that is not limited to the intended examples.

The letter a

All payments or rewards in connection with the jobs, such as wages, salaries, life insurance premiums, health insurance paid by In exchange for a tax object.

The sense of reward in other forms includes the reward in the form of the natura which is the income.

The letter b ...

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Letter b

In the sense of gifts including gifts from raffle, work, and activities such as a prize lottery prize, gifts from sports games and other so forth.

The award in question is the reward given with respect to certain activities, such as the reward received in connection with the invention of the antiquities.

The letter c

Is quite clear.

The d letter

If the taxpayer sells the property at a higher price than the value of the rest of the book or higher Of the price or value of the acquisition, the price difference is the advantage. In terms of the sale of the property between the business entity with its shareholders, the sale price used as the basis for the benefit calculation of the sale is the market price.

For example PT S has a car that is is used in its business activities with the rest of the book value of Rp 40.000.000.00. The car was sold according to the market price of Rp 60.000.000.00. Thus the advantages of PT S were acquired as the sale of the car was Rp 20,000.000.00. If the car is sold to one of its shareholders for Rp 50 million, then the value of the car remains calculated based on the market price of Rp 60.000.000.00. The margin of Rp 20,000.000.00 was the benefit of PT S, and the shareholders who bought the car at the cost of Rp 10,000.000.00 were earnings.

If a body was liquidated, the profits from the sale of the treasure, that was, The difference between the sale price is based on the market price for the remaining value of the treasure book, the Tax Object. Likewise, the difference between market prices and the value of the rest of the books in terms of mergers, smelters, bloating, breaking, and takeover attempts are income.

In terms of the transfer of the estate as a replacement for the stock Or the inclusion of capital, the advantage is the difference between the market price of a treasure that is delivered to the value of his book.

Advantage ...

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The benefit of the difference between market prices and the value of the rest of the book for the transfer of a grant, assistance or donation is considered an income for the party. Which diverts, unless the property is transferred to a family of blood in a straight line of one degree, as well as a religious body or an educational body or a social body including a foundation or a small entrepreneur including the cooperative set by the Finance Minister, all along has nothing to do with effort, work, ownership or mastery of the parties.

The letter e

The tax return has been charged at the time of calculating the Income Tax, which is a Tax Object.

As an example of the Earth Tax and Building which is already paid and charged as a fee, which is due to a cause of return, then the amount of return is income.

The letter f

In the sense of interest include premium, disconto and rewards with respect to a debt return guarantee.

Premium occurs if e.g. mail Bonds are sold above its nominal value while the diskonto occurs if the bearer bonds are purchased under the nominal value. The premium is an income for the issuing bonds and diskonto is the revenue for the purchase of bonds.

The letter g

Dividen is the share of the profit that the shareholders or the insurance policy holders have or are The rest of the cooperative effort acquired by the cooperative members. Included in the dividend sense is:

1) the profit division either directly or indirectly, by name and in any form;

2) the repayment due to the liquidation that exceeds the amount of capital that is alloted;

3) Grant ...

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3) awarding bonus shares carried out without a deposit unless the bonus stock comes from a new agio stock capitalization and fixed assets revaluation;

4) the profit share in the form stock;

5) additional capital registrants performed without a deposit;

6) the amount that exceeds the amount of its shares received or acquired by the shareholders due to the repurchase of the shares by the company in question;

7) repayment entirely or part of the paid capital, if in Past year benefits, unless repayment is a result of legitimately performed base capital (Commuter);

8) payment in connection with the profit signs, including those received as The return of the profit signs;

9) the profit received by the policyholder;

10) the profit portion received by the policyholder;

12) the expense of the remaining business results to the cooperative members;

12) the expenses of the profit. company for the personal use of shareholders charged as a fee company.

In practice often found subdivision or veiled dividend payments, for example in the case of shareholders who have paid full capital and provide loans to the company in exchange for interest rates. It's a natural. In the event of this, the difference between the interest paid with the interest rate is applicable to the market, treated as a dividend. The interest section treated as such a dividend should not be charged as a cost by the company in question.

Letter h ...

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Letter h

In essence the royalty rewards consist of three groups, in exchange for respect to the use of:

1) the rights of intangible property, e.g. the rights of the author, patents, trademarks, formula, or company secrets;

2) the rights to tangible property, e.g. the rights of industrial, commercial, and science tools. Industrial, commercial, and scientific tools are any equipment that has intellectual value, such as equipment used in some industries, such as drilling rigs, or drilling rigs, and in the United States, as well as in the United States. And so on;

3) information, i.e., information that has not been publicly disclosed, although it may not be patented, such as experience in industry, or other areas of business. The hallmark of the information is that the information is available so that the owner will no longer need to do research to generate such information. Not included in the sense of information here is information provided by e.g. public accountants, jurists, or experts in accordance with the field of expertise, which can be provided by any person who has a discipline background. The same science.

Letter i

In the sense of rent including rewards received or obtained by name and in any form in respect of the use of a treasure or a non-motion treasure, e.g. rental of a car, rent office, rent of a house, and rent a warehouse.

Letter j

Reception is a periodic payment, for example "alimentation" or a lifetime allowance that is paid over and over at any given time.

Letter k

The debt exemption by the receivable party is considered as an income for the party to which it originally owes, whereas for the party The debt can be charged as a fee.

Letter i ...

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Letter i

The benefit due to the difference in curs may be due to fluctuations in foreign currency kurs or the presence of government discretion in the monetary field. For the advantages acquired due to the fluctuations of foreign currency kurs, its tax imposition is associated with the bookkeeping system embraced by the Tax Wajib, with the condition being done in a good way.

The letter m

more difference due to judgment. returns assets as referred to in Article 19 of income.

Letter n

In the notions of insurance premiums including reinsurance premiums.

The letter o

Iuran paid by members to the calculated sororities based on the volume of the business activities or the free work of the members, e.g. the iuran The size of which is determined by volume of export, production unit or unit of sale, is the income for the society.

The letter p

The additional wealth of neto on its nature is the accumulation of good income that has been taxed and which is not a Tax Object as well as the untaxed. In the event of an additional neto wealth that exceeds the accumulated income that is taxed and that is not a Tax Object, then the addition of neto's wealth is income.

Verse (2) ...

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Verse (2)

In accordance with the provisions of the paragraph (1), the income of deposit interest and other savings, income from stock transactions and other securities on the stock exchange, The income from the transfer of property is land and/or building, and the other income is a tax object. The public savings that is distributed through refiners and exchanges is a source of funds for the implementation of the development, so that the tax imposition of income derived from the public's savings needs to be treated in its own way. His tax imposition. The underlying considerations given by their own treatment are the simplicity in the tax, justice and equities in the imposition of their taxes and regard to economic and monetary development. Such considerations also underlie the need for self-treatment of tax imposition on the transfer of property of land and/or building, as well as other types of income types. It is therefore the imposition of the Income Tax including its nature, magnitude, and the manner of payment of payment, cutting, or voting on such types of income regulated by government regulations.

By considering The ease of imposition and in order not to increase the administrative burden of both the Taxes and the Directorate General of Taxes, then the imposition of the Income Tax in this provision can be final.

Verse (3)

The letter a

Help or endowment for the receiving party is not a Tax Object to the extent accepted not in the framework of working relationships, business relationships, relationship ownership, or the relationship of control between the parties concerned.

The business relationship between the giving and receiving parties may occur, e.g. PT A as a manufacturer of a type of goods which the raw material is primarily produced by PT B. If PT B provides the donation of raw materials to PT A, then the raw material donations received by PT B are the Tax Objects. The property of the accepting is not a Tax Object if accepted by a family of blood in a straight line of one degree, and by a religious body or an educational body or a social body including a foundation or a small entrepreneur. including the cooperative established by the Minister of Finance, to the extent accepted not in the framework of working relationships, relationship relations, relationship ownership, or the relationship of control between the parties concerned.

The letter b ...

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Letter b

It is quite clear.

The letter c

In principle of the treasure, including cash deposits, which is accepted by the body is an additional economic capability for the body. However, since the property is accepted as a replacement for the stock or inclusion of capital, then under this provision, the accepted property is not a Tax Object.

The letter d

Replacement or rewards in the form of a natura or The enjoyment of the work or service is an additional economic capability that is accepted as not in the form of money. Replacement or reward in the form of natura such as rice, sugar and so on, and rewards in the form of enjoyment such as the use of cars, homes, treatment facilities and so on, is not a Tax Object.

If that gives A reward for that is not a reward or a reward for which it is earned or earned. For example, an Indonesian employee at a foreign diplomatic representative in Jakarta. The employee gains the pleasure of occupying the house rented by the diplomatic representative or other pleasures. Such pleasures are an income for the employee, for the cause of the diplomatic representation is not a taxicab.

The letter e

Reimbursable or santunan received by a private person from the company Insurance related to health insurance policy, accident insurance, life insurance, dual-purpose insurance, and student customs insurance, not a Tax Object. This is in accordance with the provisions of Article 9 of the d (1) letter of the d, i.e. that the insurance premiums paid by the Taxes of the Personal Person for their benefit should not be subtracted in the calculation of Taxable Income.

The Letter f ...

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The letter f

Based on this provision, dividends or profit parts received or acquired are limited as Taxib Taxes in the country, cooperatives, foundations or organizations A type, a state or state-owned entity, from its inclusion on other entities that are established and established in Indonesia, does not include the Tax Object. In question, the state-owned enterprise and the state-owned business agency, among others, are corporate enterprises (Persero), government banks, regional development banks, and Pertamina.

It needs to be confirmed that in terms of recipients A dividend or profit part is a taxable tax other than those bodies above, such as private persons in the country and abroad, firms, commander-in-law, and so on, the income of such a dividend or profit remains. It is a Tax Object.

The g

Exception as a Tax Object is based on This provision only applies to pension funds whose stance has been passed by the Minister of Finance. Exempt from the Tax Object is:

1) the accepted dues of the retired participants, both on the burden themselves or the ones that the employers incur. Essentially the dues received by the pension fund are the property of the retired participants, which will be paid back to them in time. The tax imposition of the dues means reducing the rights of the retired participants, and therefore the dues are excluded as the Tax Object.

2) the income of the invested capital in certain fields is based on the decision Minister of Finance. Capital cultivation by pension funds is intended for development and a buildup of funds for repayment to retirees later in the day, so that the cultivation of such capital needs to be directed at areas that are not speculative or otherwise. It's high risk. Therefore, the determination of certain fields is referred to by the Minister of Finance's decision.

The letter h ...

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Letter h

For the benefit of tax imposition, the bodies as are referred to in this provision are the sets of its members taxed as a single unit, i.e. at the level of the body. Therefore, the share of the profits received by those limbs is no longer an Object of Tax.

Letter i

A fund-fund is a company whose primary activities are investing, reinvestment, or sell-buy. Security. For financiers in particular small financiers, the fund-fund company is one of the safe options to instill the capital. The income earned or acquired by a fund company from its investment can be a dividend and bond interest. Because the fund-based company is generally limited in the form of a limited liability, in accordance with the terms of the paragraph (3) the letter of the dividend is not a Tax Object. In order not to reduce the funds available to be distributed to financiers, especially small financiers, bond interest is also not a Tax Object for the fund-fund company.

Letter j

The venture capital firm is a company Whose efforts are to finance the business agency (as a partner) in the form of capital inclusion for a given period of time. Under this provision, the revenue portion received or obtained from a business partner company does not include a Tax Object, provided that the business partner's company is a small, medium, or business enterprise that runs the business or conduct activities in certain sectors set by the Minister of Finance, and the shares of the company are not traded on the securities exchange in Indonesia.

If the business partner venture capital venture meets the provisions as referred to in paragraph (3) of the letter f, then the dividends received or obtained Venture capital firms are not a tax object.

For the activities of venture capital firms can be directed to sectors of economic activity that are gaining priority to develop, for example to increase non-migas exports, then efforts or activities of the venture partner companies are governed by the Minister of Finance. Considering venture capital firms are alternative financing in the form of capital inclusion, the inclusion of capital firms will be directed by venture capital firms to companies that do not have access to the stock exchange.

Number 6 ...

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Figures 6

Article 5

Persons with no living or unfounded bodies and not held positions in Indonesia that run the effort or perform activities through a fixed form of business in Indonesia, taxed in Indonesia through such fixed form.

Verse (1)

Letter a

The form of an effort remains taxed on income derived from business or activities And from the property of his possession, or of his inheritance. Thus all such income is taxed in Indonesia.

The letter b

Based on these provisions the income of the central office comes from business or activities, the sale of goods and services, which is similar to that of the A form of enterprise is considered a fixed form of income, as it is in the nature of the effort or activities that are included in the scope of the business or activities and may be performed by a fixed form of business.

Effort or Activities that are similar to the business or business activities, such as the case of the A bank outside Indonesia, which has a fixed form of business in Indonesia, provides loans directly without the form of its permanent ventures to companies in Indonesia.

The sale of goods that are similar to those sold by the form A fixed effort, for example, the overseas headquarters, which has a fixed form of business in Indonesia, sells the same product as the product sold by the fixed form, directly without the form of its permanent business to the buyer at the end of the country. Indonesia. Services provided by the central office of the same services provided by a fixed form, such as the headquarters of a consulting company outside of Indonesia, provide the same consultation with the type of services that remain in the form of a fixed entity. directly without the form of its permanent business to the client in Indonesia.

The letter c ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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The letter c

The income as referred to in Article 26 which is accepted or obtained by the head office is considered to be an income form of a fixed effort in Indonesia, if there is a relationship It is either an effective date for which the Cloud Service can be used for the Cloud Service. For example, X Inc. closed a license agreement with PT Y to use the trademark X Inc. On the use of the rights X Inc. accepts the rewards of royalty from PT Y. Serelation to the agreement X Inc. also provides management services to PT Y through a fixed form of business in Indonesia, in the marketing framework of PT Y products use that trademark. In doing so, the use of the trademark by PT Y has an effective relationship with a fixed form in Indonesia, and therefore the earnings of X Inc., which are those royalties, are treated as an income form of a fixed effort.

Verse (2)

Clear enough.

Verse (3)

The letter a

The administrative expenses issued by the central office throughout use to support the business or business activities remain in Indonesia, may be subtracted from The income of the fixed form. The type and magnitude of the fee may be deducable by the Director General of the Tax.

The letter b and the letter c

Basically the form of the effort remains one unit with its head office, so payment by form A fixed effort to the head office, such as royalty for the use of a central office treasure, is a round of funding in one company. Therefore, under this provision the payment of the form of an effort remains to its head office of royalty, in exchange for services, and interest shall not be subtracted from the income of a fixed form of effort. However, if the central office and its permanent form moves in the field of banking business, then the payment of the loan interest may be charged as a fee.

As ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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As a consequence of such treatment, the kind of payments received by the form of a fixed effort from its head office are not considered to be an Object of Tax, except for interest. which is accepted by the form of a fixed business from its central office concerned with banking efforts.

Figure 7

Article 6

Verse (1)

The deductable load of gross income can be divided in 2 (two) groups, That is the case that you do not have access to or from the last one. Has more than 1 (1) years of benefit. A load that has a lifetime of no more than 1 (one) year is the cost of the year in question, e.g. salary, administrative costs and interest, the routine cost of sewage treatment, and so on. While spending has a benefit of more than 1 (one) year, the charge is done through depreciation or through amortization. If the loss of wealth is due to the loss of money or due to the margin of curs, the losses may be deductable from gross income.

The letter a

The charges referred to in this paragraph, Commonly called the daily expenses that may be charged in the expenditure year. To be charged as a fee, such expenses must have a direct connection to the effort or activities to obtain, collect, and maintain income that is a Tax Object. Thus the expenses for obtaining, invoking, and maintaining income that is not a Tax Object, should not be charged as a fee.

Example:

The Pension Fund whose stance has been granted authorization from the Finance Minister obtained a gross income made up of:

a) earnings ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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a) earnings that are not

is a Tax Object in accordance

Section 4 of the paragraph (3)

letter g of Rp 100,000.00

b) gross income outside

ad. a) of Rp 300,000.00

___________________ (+) Income amount

gross Rp 400.000.00

If the entire charge is Rp 200,000.00 then the cost is to be deducable to obtain, collect and maintain The income is 3/4 x Rp 200,000.00 = Rp 150.000.000.00.

Similarly interest on loans used to purchase outstanding shares or to undertake acquisition of shares belonging to the founder shareholder or long time cannot be charged as a fee along the dividends he receives not It is a Tax Object in Section 4 (3) of the letter f, except for the interest of the loan used to perform the inclusion of the newly established company or to take part in the "right issue" by the company that has already been created. long standing. Such loans may not be capitalized.

The expenses that have nothing to do with the effort to obtain, collect, and maintain income, for example, expenses for the purpose of the business. personal shareholders, interest payments on loans used for the borrower ' s personal use as well as payment of insurance premiums for personal interest, should not be charged as a fee.

The real-real debt is not able to billed can be charged as the cost of the whole Mandatory Tax has done Maximum or final billing efforts, namely, that Tax has submitted the collection of the debt to the State Board of Debt and the State Lelang (BUPLN) or has got a Court decision.

The payment of the insurance premium by Employers ' interests may be charged at the cost of the company, but for the employees concerned the premiums are income.

Spending-...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Spending-spending with respect to the work that is allowed to be deducable from gross income must be made in the form of money. Expenses made in the form of natura or enjoyment, such as the facilities occupy the house with free-only, should not be charged as a fee, and for parties to receive or enjoy instead of income. However, the expenses in the form of a natura or a particular enjoyment as set out in Section 9 of the paragraph (1) letter e, may be charged as a fee and for the parties to receive or enjoy not an income.

The deductable expenses of gross income must be made within reasonable limits according to the custom of good merchant customs. Thus, if the expenditure beyond the limits of the affair is affected by the preferable relationship, then the amount beyond the limits of the will is not to be deduted from gross income. Further notice of the provisions of Article 9 of the paragraph (1) of the letter f and Article 18 and its explanation.

The taxes that are the burden of the company in order for its efforts in addition to the Income Tax, e.g. the Earth Taxes and the Buildings (UN), Bea Meterai (BM), Development Tax I (PP.I), can be charged as a fee.

Regarding the expenditure for promotion, the need to be distinguished between the costs that are actually issued for promotion at a cost which is in its nature a donation. A fee that is actually issued for promotion may be deduted from gross income.

The letter b

The expenses to acquire tangible property and intangible property as well as other expenses that have a more benefit period. From one (one) year, the operation is performed through depreciation or amortization.

Next look at the provisions of Article 9 of the paragraph (2), Section 11, and Section 11A and the explanation.

Spending by nature is payment in advance, For example, rent for a few years paid at once, the charge can be is done through the allocation.

Letter c ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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The letter c

Iuran to the pension fund whose foundation has been passed by the Minister of Finance may be charged as a fee, while the dues paid to the pension fund are The foundation is not or has not been passed by the Minister of Finance should not be charged.

The letter d

The loss due to the sale or diversion of the property which it was originally intended was not intended to be sold or diverted which owned and used within the company or owned to obtain, invoice and maintaining income may be deductable from gross income.

The loss due to the sale or transfer of property owned but not used within the company, or which is owned but not used to obtain, billing and Maintain income, not to be subtracted from gross income.

Letter e

The loss due to the difference in the currency of foreign currency may be due to the fluctuations of date kurs occurring daily, or by the government's discretion. In the monetary field. The loss of the foreign currency curs caused by the curs fluctuation, the charge is based on the system of books being embraced, and must be done in accordance with the principles of the system. If Taxes are required to use a system based on fixed rates, the burden of loss of date margin is done at the time of the realization of the foreign currency's estimate. If the taxpayer uses a bookkeeping system based on the middle seat of the Bank of Indonesia or the actual date is valid at the end of the year, the charge is performed at each end of the year based on the central seat of the Bank of Indonesia or the actual kurs. In effect at the end of the year.

Rugi the difference of curs due to the government's monetary discretion is set in temporary estimates on the balance sheet and the charge is conducted gradually based on the realization of the foreign currency.

The letter f

Cost of research and development of enterprises carried out in Indonesia in a reasonable amount to find a new technology or system for the development of a company may be charged as a corporate fee.

The letter g ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Letters g

Charges issued for the purpose of student duties, internships and trainings in order to increase the quality of human resources may be charged as a company fee, with The company's interests and interests.

Verse (2)

If the expenses are allowed on the terms of the paragraph (1) after being deductored from the gross income gained loss, then the loss. Be compensated with your IBM sales and fiscal year earnings. In a row starting from the next year after the year of its loss.

Example:

PT A in 1995 suffered a fiscal loss of Rp 1,200,000.00. In 5 (five) the following year the fiscal profit of PT A as follows:

1996: fiscal profit Rp 200,000.00

1997: fiscal loss (Rp 300,000.00)

1998: fiscal profit Rp NIHIL

1999: fiscal profit Rp 100.000.00

2000: fiscal profit Rp 800.000.00

Compensation ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Compensation Compensation is done as follows:

Fiscal Rugi of 1995 (Rp 1,200,000.00)

Laba fiscal 1996 Rp 200,000.00

________________________ (+)

The fiscal loss of 1995 (Rp 1,000.000.00)

fiscal year 1997 (Rp 300,000.00)

The fiscal loss of 1995 (Rp 1,000.000.00)

Laba fiscal 1998 Rp NIHIL

_________________________ (+)

The fiscal loss of 1995 (Rp 1,000.000.00)

Laba fiscal 1999 Rp 100.000.00

_________________________ (+)

Last fiscal loss of 1995 (Rp 900.000.00)

Laba fiscal 2000 Rp 800,000.00

_________________________ (+)

The fiscal loss of 1995 (Rp 100.000.00)

fiscal year 1995 of Rp 100,000.00 which remained in late 2000, no may be compensated again with fiscal year 2001, while the fiscal 1997 loss of Rp 300,000.00 should only be compensated with fiscal 2001 and 2002, due to a 5-year term beginning in 1998, and the fiscal year ended in the year of the year. at the end of 2002.

Verse (3)

In calculating the Taxpayer Taxpayer of a private person in the country, to him is granted a reduction in the form of Income Taxable (Pcrime) under the terms as referred to in Article 7.

The number 8 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 8

Article 7

Verse (1)

To calculate the magnitude of the Taxpayer Income of the Tax Taxpayer in the country, his net income is reduced by number Income Is Not Taxable. In addition to his or her, a married tax is granted no taxes.

For the taxpayer whose wife receives or earns the income that is merged with her income, then the Taxes. Got an extra-tax income for a wife of Rp 1,728,000.00.

A taxable tax that has a member of the family of blood and a while in a straight line of descent, for example, parents, in-laws, real children, foster children, provided additional income is not taxable for the most many 3 (three) people. It is a family member who is a wholly owned member of the family who has no income and the entire cost of his life is borne by Wajib Tax.

Example:

Wajib Tax A has a wife with a 4 (four) dependents of the child. And if the wife of the third part of the life of the house of law shall not be in the hands of the husband or of the other, then the money shall not be in the hand of the tax. given to Wajib Tax A is the amount of Rp 5.184.000.00 {Rp 1,728,000.00 + Rp 864.000.00 + (3 x Rp 864.000.00)}. As for his wife, at the time of the Income Tax Deduction Section 21 by the employers, the Income Did Not Have A Tax rate of Rp 1,728,000.00. If the wife's income is to be combined with the income of the husband, then the amount of income that is given to Wajib Tax A is Rp 6.912,000.00 (Rp 5.184.000.00 + Rp 1,728,000.00).

Verse (2)

The calculation of the magnitude of the Income Taxless as referred to in paragraph (1) is determined according to the state of Mandatory Tax at the beginning of the tax year or at the beginning of the tax year.

For example, ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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For example, on January 1, 1995, Wajib Tax B was married to one of the children's people. If the second child was born after 1 January 1995, the magnitude of the Income Taxable that was given to Wajib Tax B for the 1995 tax year remains to be calculated based on the mating status with 1 (one) child.

Verse (3)

Based on this provision the Minister of Finance is authorized to change the magnitude of the Income Income as referred to in paragraph (1) by considering economic and monetary development as well as the development of the price of the principal needs each year.

Number 9

Article 8

The tax imposition system is based on This legislation puts the family as one economic entity, meaning income or loss of all family members combined as a single subject to be taxed and the fulfillment of its tax obligations is carried out by the head of the family. However, in certain matters the fulfilment of such tax obligations is done separately.

Verse (1)

The income or loss for women who have mated at the beginning of the tax year or at the beginning of the tax year is considered as Her husband's income or loss and are taxed as a unit. Such incorporation is not done in terms of the income of the wife being obtained from work as a tax-cut employee, provided that:

a. The wife's income is solely acquired from a single worker, and

b. The wife's income comes from work that has nothing to do with the work or the free work of the husband or any other family member.

Example: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example:

Wajib Tax A, which earns income from a venture of Rp 100,000.00, has a wife who is an employee with an income of Rp 50,000.000.00. If the wife of the child is raised by a third party, it is not for a husband or another family member, and it is not for the money that is made in the law. Not combined with income A and the income tax on the wife's income is final.

If other than being an employee, wife A also runs a business, for example a beauty salon with an income of Rp 75,000.00, then The entire income of the wife is Rp 125.000.00 (Rp 50,000.00 + Rp. 75,000.000.00) combined with a merger with the merger A taxed at Rp 225,000.00 (Rp 100.000.00 + Rp 50,000.000.00 + Rp 75.000.00). Taxes on the wife's income are not final, which means that it is credited with the tax owed at Rp 225,000.00, which was reported in the husband's Income Tax Annual Notice.

Verse (2) and verse (3)

In terms of husband and wife have lived apart, the calculation of the Income Tax and its tax imposition is done alone. But when the wives of the children of wealth and their wealth are in writing, their taxes are made according to the income of the wives, and each shoulder the burden of the tax is worth the weight of the money. neto.

Example:

The tax-count for husband-wife who holds an income separation agreement in writing is as follows:

From example to paragraph (1), if his wife runs a salon effort beauty, its tax imposition is calculated based on the amount of income of Rp 225,000,000.00.

For example the tax owed to the amount of income is Rp 56.250,000.00, then for each husband and wife his tax imposition is counted as follows:

-Husband: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

-33-

-Husband:

100.000.000.00

------------ x Rp 56.250.000.00 = Rp.25.000.00 225.000.000.00

-Isteri:

125.000.000.00

-------------- x Rp 56.250.000.00 = Rp 31.250.000.00

225.000.000.00

Verse (4)

The income of an immature child that is not merged with the income of its parents is only income derived from work that has nothing to do with the effort or the activities of the person who have a special relationship with that child.

Which In question, an immature child is an 18-year-old child who has never been married. If a child is immature, whose parents have separated, receive or earn income then her tax imposition is combined with the income of her father or mother based on the actual circumstances.

Figures 10

Article 9

Verse (1)

The expenditures of the Taxpayer Tax may be distinguished between the acceptable spending and that should not be charged.

In principle the cost may be deductable from gross income is the cost. who has a direct connection to the effort or activities to get, invoice, and maintain an income that is a tax object that may be performed within a year of expenditure or during the benefit of such expenses. Expenses that are not allowed to be subtracted from gross income include spending on their nature as income consumption, or the amount of which is more than a reasonable amount.

The letter a ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Letter a

Partition of profit by name and in any form, including payment of dividends to capital owners, share the remainder of the cooperative effort to its members, and payment The dividend by the insurance company to the policyholder, should not be deduxed from the income of the body which shares it because the profit sharing is part of the income of that body to be taxed under the Act. this.

Letter b

Cannot be deductable from the company ' s gross income are costs incurred or charged by the company for the personal interest of shareholders, allies or members, such as private home repairs, travel expenses, cost of insurance premiums paid by the company for the benefit of The private or family members of the company.

The letter c

The formation or the buildup of reserve funds in principle cannot be charged as a fee in calculating the Income Tax. However, for a particular type of effort that is economically necessary to close the burden or loss of the future, which is limited to unpaid accounts for bank and lease efforts in order to be entitled to the rights of the right to the bank. option, backup for insurance efforts, and a backup of reclamation fees for mining efforts, then the company in question may conduct the establishment of a backup fund that provisions and its terms are set by the Finance Minister.

The letter d

Premi for health insurance, accident insurance, life insurance, insurance The bi-purpose, and self-paid student insurance of a person's personal taxes should not be deducable from gross income, and when the person is referred to receive the reimbursable or insurance coverage, the receipt is not a result of the payment of the payment. Object Tax. If such insurance premiums are paid or incurred by the employers, then for the employers the payment may be charged and for the employees concerned is the income that is a Tax Object.

The letter e ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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The letter e

As described in the explanation of Article 4 of the letter d, replacement or reward in the form of natura and enjoyment is not considered an Object of Tax. In accordance with the terms of this Service, the terms and conditions of this Service are subject to the terms of this Service and the terms of the IBM International Terms of Service ("IBM") However, in order to support the wisdom of the government to encourage development in certain areas of remote areas, under the decision of the Minister of Finance, replacement or reward in the form of natura or enjoyment given in respect of the government of the country. with the execution of jobs in the area, it may be deducable from the gross income of the employers.

In terms of granting of employees who are a must in the execution of work, such as clothing and equipment for safety work, uniform clothes, escort employees, provision of food and drink As well as lodging for the crew, and the like, it is not a reward but may be charged as a fee for the employers.

The letter f

In the work relationship, there may be a payment of payment. It's given to the employee who is also a shareholder. Because of the expense of the expense, the amount of income that is reasonable is the amount that is reasonable in accordance with the conduct of the business, and the amount that is in the amount of income. exceeds that it may not be charged.

For example, an expert who is a shareholder of a body, provides the service with a reward of Rp 5,000.000.00. If for the same services given by another equivalent force only paid Rp 2,000.000.00, then the amount of Rp 3,000.000.00 should not be charged as a fee. For experts who are also shareholders, the amount of Rp 3,000.000.00 is considered to be a dividend.

The g

is quite clear.

The letter h ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Letter h

Which is intended with the Income Tax in this provision is the Income Tax owed by the Tax Wajib in question.

The letter i

Charges for For the sake of the tax, or for the person who is responsible, the tax on which the tax of the tax is concerned. It is therefore not to be subtracted from the company's gross income.

The letter j

A member of the firm, an alliance and a commanding officer whose capital is not divided over the shares is treated as a single entity, so that There's no reward for salary. Thus the salary received by a member of an alliance, the firm, or a commanding officer whose capital is not split over the stock, is not the payment to be deduct from the gross income of the body.

The letter k

Quite Clearly.

Verse (2)

In accordance with the conduct of the business, spending has a role on the income for a few years, the charge is performed according to the amount of year the expenditure is in the role of income. In line with the principle of alignment between spending with income, in this provision the expenditure to obtain, collect, and maintain income that has a benefit of more than 1 (one) year cannot be subtracted as a cost company at once in the expenditure year, but rather charged through depreciation and amortization during its benefits as set out in Section 11 and Section 11A.

Figure 11

Section 10

These provisions govern the manner of wealth assessment, including supplies, in order to calculate earnings with respect to the use of assets within the company, calculate profit or loss if Sales or transfer occured, and the calculation of the revenue from merchandise sales.

Verse (1) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (1)

In general in the sale of the treasury, the price of the purchase of the buyer is the real price paid and the seller's price for the seller is the price that Actually accepted. Included in the acquisition price is the purchase price and the costs incurred in order to acquire the property, such as the import duties, transportation fees and installation costs.

In the sale of the purchase affected by the privileged relationship, In an example, the sum of the value of the seller shall be paid, and the seller of the seller of the sale is the sum that is to be accepted. The existence of a special relationship between a buyer and seller can cause a price, the acquisition becomes greater or smaller than if the purchase of the purchase is not affected by the special relationship. Therefore, in this provision it is set forth that the value of the acquisition or value of the sale of the property for the parties is the amount that should be issued or that should be accepted.

Verse (2)

The property obtained Based on exchange with other treasures, the value of the acquisition or sale value is the amount that is supposed to be elucied or accepted based on the market price.

Example:

PT A PT B (Treasure X) (Treasure Y)

The remaining value of the book Rp 10,000.00 Rp 12.000.000.00

Market Price Rp 20.000.000.00 Rp 20.000.000.00

Between PT A and PT B there is a treasure exchange. Although there is no realignment of the payments between the parties, however, because the price of the traded property market is Rp 20,000.00, then the amount of Rp 20,000.00 is the value of the acquisition that should be issued or A sales value that should be accepted. The difference between market prices and the value of the remaining treasure books is a tax on the price of the tax. PT A gains Rp 10,000.000.00 (Rp 20,000.00-Rp 10.000.00) and PT B gains Rp 8,000.000.00 (Rp 20,000.000.00-Rp 12.000.00).

Verse (3) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (3)

In principle in the case of a transfer of property, the transfer of the diverted property is based on the market price. The diversion of the treasure can be done in the course of the development of a merger, smelting, bloating, breaking, and taking a takeover. In addition, the transfer may be done in order for the liquidation of business or other causes.

The difference between the market price for the remaining value of the treasure book is the revenue that the tax levied.

Example:

PT A and PT B performs the smelting and forming a new body, namely PT C. The value of the rest of the book and the price of the treasure market from both bodies is as follows:

PT A PT B

The remaining value of the book is Rp 200,000.00 Rp 300,000.00

Price market Rp 300.000.00 Rp 450,000.000.00

Basically, valuations of the estate submitted by PT A and PT B in order of smelting to PT C are the market price of the treasure. Thus, PT A benefits Rp 100.000.00 (Rp 300,000.00-Rp 200,000.00) and PT B gains Rp 150,000.00 (Rp 450.000.00-Rp 300.000.00). While PT C has all the treasures of Rp 750,000.00 (Rp 300,000.00 + Rp 450.000.00). But in order to align with policies in the social, economic, investment, monetary and other policies, the Finance Minister is authorized to set another value in addition to the market price, namely on the basis of the value of the rest of the book (" pooling of interest "). In doing so, PT C has an estimated revenue from PT A and PT B amounting to Rp 500,000.00 (Rp 200,000.00 + Rp 300,000.00).

Verse (4) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (4)

In the event of a submission of the property because of a grant, assistance, a donation that is eligible in Article 4 of the paragraph (3) letter a or inheritance, then the value of the acquisition for the party. Accepting the treasure is the value of the rest of the treasure books from the parties to surrender If the taxpayer does not host the books so that the remaining value of the book is not known, then the value of the acquisition of the property is set by the Director General of the Tax.

In the event of the submission of the treasure due to the grant, assistance, the donation that unqualified as referred to in Section 4 of the (3) letter a, then the acquisition value for the diverted party is the market price

Verse (5)

The inclusion of the Tax Wajib in a body may be met with a deposit. cash or diversion of treasure.

These provisions set about valuations of the treasury submitted as a replacement for the stock or inclusion of capital referred to, namely assessed based on the market value of the diverted treasure.

Example:

Wajib Tax X handed over 20 units of the bubut machine whose book value was Rp. 25.000.000.00 to PT Y as a replacement for the inclusion of its stock with a nominal value of Rp 20.000.000.00. The market price of the bubue is Rp 40.000.00. In this case, PT Y will record the bulbous engine as an asset with a value of Rp 40.000.000.00 and it is not an income for PT Y. The margin between the value of the value of the stock market, which is Rp. 20.000.000.00 (Rp 40.000.00-Rp 20.000.00) is made up as agio. For Taxpayers X (Rp 15,000.00) (Rp 40.000.00) (Rp 40.000.00-Rp 25,000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00) (Rp 40.000.00), the process of production, raw materials and auxiliary materials.

Conditions ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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The provisions of this paragraph govern that the assessment of the goods inventory should only be used for the acquisition price. The assessment of the use of supplies for the calculation of the principal price can only be done in an average way or by way of first-in-first-out or FIFO first-derived supplies. In accordance with gender, the manner in which the assessment is also applied to securities.

Example:

1. Initial inventory of 100 units @Rp 9.00

2. Purchase of 100 units @Rp 12.00

3. Purchase of 100 units @Rp 11.25

4. Sales/used 100 units

5. Sales/used 100 units

The sales principal price calculation and the value of the inventory by using the mean way as follows:

No Reacquired Use/supplies

1. 100s @Rp9.00 = Rp 900,00

2. 100s @Rp12 .00 = Rp1,200,00 200s@10 ,50 = Rp2.100.00

3. 100s @Rp11, 25 = Rp1, 125.00 300s @Rp10, 75 = Rp3.225.00

4. 100s @Rp10, 75 = Rp1,075.00 200s @Rp10, 75 = Rp2.150,00

5. 100sRp 10 .75 = Rp1,075.00 100s @Rp10, 75 = Rp1.075.00

The principal price count and the value of the inventory by using the FIFO way for example are the following:

No use for the rest of the supply/supplies

1. 100s @Rp9.00 = Rp900,00

2. 100s @Rp12 .00 = Rp1,200,00 100s @Rp9.00 = Rp900,00

100s @Rp12.00 = Rp1, 200,00

3. 100s@11, 25 = Rp1.125.00 100 @ Rp9.00 = Rp900,00

100s @Rp12 .00 = Rp1,200,00

100s @Rp11, 25 = Rp1.125.00

4. 100s @Rp9.00 = Rp900,00 100s @Rp12 .00 = Rp1,200,00

100s @Rp11, 25 = Rp1.125.00

5. 100s @Rp12.00 = Rp1, 200,00 100s @Rp11, 25 = Rp1.125.00

Once ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Once Wajib Tax chooses one of the way the assessment of the wearer is stockpiles for the calculation of the underlying price, then for later years must be used the same way.

Figure 12

Section 11

Verse (1) and paragraph (2)

Spending to obtain tangible property that has a lifetime of more than 1 (one) year must be charged as a fee to obtain, collect, and maintain income. by allocating such expenses during the time of the estate's benefit through Depreciation. The land shall not be disbursed, unless the land is used in a company or is owned to make it under the condition that the value of the land is reduced due to its use to earn income, such as land. used for a tile company, a ceramic company or a brick company. The permitted method of depreciation based on these provisions is (a) in the same large portions during the benefit period specified for the property (straight line method or "straight-line method"), or (b) in descending sections by applying a depreciation rate over the value of the rest of the book (decreased balance method or "declining balance method"). The use of the depreciation method must be done in a devout observant mind.

For the tangible property of the building can only be disentated by straight line methods. Tangible property in addition to buildings can be disbursed by straight line methods or decreased balance methods. In the case of the Visible Taxes using the declining balance method, the value of the rest of the book at the end of the benefit must be disbursed at once.

In accordance with the Book of Taxes, the same small tools ("small tools") or similar types may be disbursed in one group.

Example the use of a straight line method:

A building whose price is Rp 100.000.00 and its benefit 20 (twenty) years, the penetration of each year is Rp 5,000.000.00 (Rp 100.000.000.00: 20).

Example ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example of usage of the balance method decreased:

A machine bought and placed in June 1995 for the acquisition price of Rp 150.000.00. The value of the machine is four (four) years. If the depreciation rate for example is set 50% (fifty percent), then the calculation of the sequence is as follows:

The Year of Tarif Repreciates The Rest of the Book

0 150.000.00

1 50% 75.000.00 75.000.000.00

2 50% 37.500.000.00 37.500.000.00

3 50% 18.750.000.00 18.750.000.00

4. Dissolving at 18.750,000.00 0

Verse (3) and verse (4)

These provisions govern when the start of depreciation, which is the year of the expenditure or in the year completion of the work of a treasure. However, under the approval of the Director General of Tax, when the start of depreciation can be done in the year the treasure is used to obtain, collect and maintain income or in the year the treasure has begun to produce. What it means to begin to produce in this provision is associated with the start of production and is not associated with the time received or obtained by revenue.

Example 1.

Spending for building a building is It's Rp 100.000.00. Construction began in October 1995 and was completed for use in March 1996. Depreciation at the cost of building the building began in the 1996 tax year.

Example 2.

PT X which moved in the field of coffee plantations bought a tractor in 1999. The plantations began to produce (harvest) in 2000. With the approval of Director General Tax, the tractor shrinkage can be done starting in 2000.

Verse (5)

Pretty clear.

Verse (6) ...

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Verse (6)

To provide legal certainty for the Tax Wajib in doing depreciation over tangible property expenditure, this provision governs the group of property benefits and rates The depreciation is either a straight line method or a declining balance.

The non-permanent building is a temporary building and is made of non-durable material or a mobile-moving building, which is the case of a non-permanent building. Its benefits are no more than 10 (ten) years. For example, barracks or dormitory are made of wood for employees.

Verse (7)

In order to conform to the characteristics of certain areas of business, such as oil and petroleum mining, the crop of hard crops, needs to be given its own setting for the depreciation of tangible property used in such endeavour that its provisions are specified by the Finance Minister's decision.

Verse (8) and paragraph (9)

Basically profit or loss due to diversion The property was taxed in years of the transfer of the treasure.

If the property is sold or burned, then the net acceptance of the sale of the property, that is the difference between the price of the sale at the cost of the sale, and/or the replacement of the insurance. As an income in the year of the sale or in the year of the receipt of the insurance change, the remaining value of the book from the treasure is charged as a loss in the tax year in question.

In terms of the insurance replacement that accepted a new amount can be known for certain in later times, Wajib Tax can submit a request to the Director General of the Tax so that the amount of such loss may be charged in the year of such insurance reimburse.

Verse (10)

Deviation from the provisions as referred to in paragraph (8), in terms of The transfer of any tangible property as specified in Article 4 of the (3) letter a and letter b, the remaining value of the book should not be charged as a loss by the diversionable party.

Verse (11) ...

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Verse (11)

In order to provide uniformity to Wajib Tax for depreciation, the Finance Minister is authorized to set the type of treasure type included in each The benefit group must be dükuti by Wajib Tax.

Figure 13

Article 11 A

paragraph (1)

Price of the acquisition of intangible property and other expenses that have a lifetime of more than one year, diamortisation with method (a) in the same parts of each year during the benefit period, or (b) in Decreasing parts per year by applying amortization rates for the value of the rest of the book.

Special to amortization of intangible property using decreased balance method, at the end of the lifetime value of the value of the rest of the intangible treasure book or those rights are diamortized at once.

Verse (2)

The determination of the benefits and amortization rates of intangible property expenditure is intended to provide uniformity to Wajib Tax in amortization. Taxes can be amortized in accordance with the method that is chosen in verse (1) based on the actual benefits of any intangible property. The applied amortization rate is based on the benefit group as set out in this provision. For the sake of intangible property, it is not listed in the existing group of benefits, so Wajib Tax uses the nearest benefit period. For example, an intangible property with an actual benefit of six (six) years can use a benefit group of 4 (four) years or 8 (eight) years. In terms of the actual benefits of 5 (five) years, the intangible property is diamortized by using the benefit group 4 (four) years.

Verse (3)

Pretty clear.

Verse (4) ...

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Verse (4)

The method of the production unit is carried out by implementing the percentage of amortization rates that are large every year equal to the percentage of comparisons between the realization of mining The oil and gas of the Earth in the year is concerned with an estimate of the amount of the Earth's oil and gas content in that location which can be produced.

If it turns out the actual production numbers are smaller than expected, so that There is still no expense to obtain any rights or expenses, then for the remainder of the term. those expenses may be charged at once in the tax year concerned.

Verse (5)

Spending to obtain mining rights other than oil and petroleum, forest entrepreneurial rights, or other natural outcomes such as rights Ocean yield is diamortisation based on the method of production units at a rate of 20% (twenty percent) a year.

Example:

Spending to acquire forest entrepreneurial rights, which has a potential 10,000,000 (ten million) tons of wood, amounting to Rp 500,000.00 diamortisation according to the percentage of units The production is realized in the year in question. If in one tax year it turns out the production amount of 3,000,000 (three million) tons which means 30% (thirty percent) of the available potential, then even though the amount of production in that year reaches 30% (thirty percent) of the amount The potential available, the magnitude of amortization that is allowed to be subtracted from gross income in the year is 20% (twenty percent) of the expenditure or Rp 100.000.00.

Verse (6)

In the sense of spending done before commercial operations, are costs incurred prior to commercial operations, e.g. the cost of feasibility studies and the cost of experimental production but does not include expenses operations that are routine, such as employee salaries, electrical and phone account costs, and other office costs. For regular operating expenses this is not to be capitalized but charged at once in the year of expenditure.

Verse (7) ...

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Verse (7)

Example:

PT X is issuing a fee to acquire oil and gas mining rights at a location of Rp 500,000.00. An estimate of the amount of oil in the area is as much as 200,000,000 (two hundred million) barrels. After the oil and gas production of 100,000,000 (100 million) barrels, PT X sold the mining rights to other parties at a price of Rp 300,000.00. Revenue counting and losses from the sale of the rights are as follows:

The acquisition price of Rp 500,000.00

Amortization done 100,000,000/200,000,000 barrels (50%)

Rp 250.000.000.00

Value treasure book Rp 250.000.000.00

The sale price of Rp 300,000.00

Thus the sum of the total value of the book of Rp 250,000.000.00 was charged as a loss and the amount of Rp 300,000.00 was made up as an income.

Verse (8)

Pretty clear.

Figures 14

Article 12

Quite clear.

Figure 15

Article 13

Pretty clear.

Number 16 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 16

Article 14

The correct and complete information on the income of Wajib Tax is essential for being able to charge fair and reasonable taxes according to the ability The economy of the taxpayer. To be able to present the intended information, Wajib Tax must host the bookkeeping. However, it is realized that not all Taxpayers are capable of holding up the books.

All the body taxes and the form of effort are still required to host the books. A private person's tax that runs the business or does a free work with a certain amount of circulation, is not required to host the books.

To provide ease in calculating the magnitude of neto ' s income for Wajib The tax that runs the business or the free work with this particular gross circulation, the Director General of Tax publishes the calculation norm.

Verse (1)

The calculation of the calculation is the guideline to determine the magnitude of the gross circulation. The amount of money neto is issued by the Director General of Tax with a guideline on a hold set by the Minister of Finance and refined continuously. The use of such calculation norms is essentially done in matters:

a. There is no better calculation, and is not a complete account. The ledger or gross circulation record of the Tax Wajib was held untrue.

The calculation of the calculation is structured in such a way as the result of other research or data, and with regard to the natural view.

Norma The counting will be helpful for the Taxes that have not been able to host the books to calculate the neto earnings.

Verse (2), ...

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Verse (2), paragraph (3) and paragraph (4)

Norma Counting Earnings Of Neto may only be used by the private persons Tax Wajib whose collision is less than the amount of Rp 600.000.00. To be able to use the Neto Calculation of the Neto Income Calculation, a personal person's tax must notify the Director General of Tax within the first three months of the tax year in question. A private person's taxes that use the Neto Income Calculation are required to host records as set out in the Law on the General Terms and Taxation, about the collapse of the bruates. The logging was intended to facilitate the application of norms in calculating neto's earnings.

If the Tax Wajib was entitled to use the Neto Income Calculation, but did not tell him. to the Director General of Tax within a defined time frame, then the Tax Wajib is considered to choose to host the bookkeeping.

Verse (5)

These provisions govern the application of the Gross Circular Calculation and the Norm Neto's tally of Wajib Tax is the real gross. It is not known, that is the Tax Concurrent that is:

a. Mandatory bookkeeping but not willing to show account or gross circulation or evidence -- proof of account or evidence of gross circulation, so that the actual gross circulation is not known;

b. It is considered to be a bookkeeper for not informing the Director General of Tax on his desire to account for neto's earnings with Neto's Norma Counting Earnings, but it turns out not or not fully organizes. bookkeeping so that the actual gross circulation is unknown;

c. has expressed its desire to the Director General of the Tax to calculate its net income by using Neto's Norma Counting Earnings, but it turns out not or not fully organized a record of Its collapse, so the actual gross circulation is not known.

Verse (6) ...

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Verse (6)

This provision regulates the application of Neto's Norma Calculation Income in terms of the gross circulation of the Tax Taxes which is actually known but the earnings of the net cannot be counted, which is against Wajib Tax which is:

a. Mandatory bookkeeping, but not or not fully organized bookkeeping or not showing the books or the evidence, but the actual gross circulation is known;

b. It is considered to hold the book as referred to in verse (4) but not or not fully organizes the books or does not exhibit the books or evidence, but the actual gross circulation is known.

Verse (7)

The Finance Minister can adjust the magnitude of the gross circulation limit as referred to in paragraph (2) with regard to economic development and the ability of the Tax Wajib to host the bookkeeping.

Figures 17

Section 15

These provisions set about the Special Count Norm For certain types of Tax Mandatory Service, overseas insurance companies, oil, gas and geothermal drilling companies, foreign trade companies, companies that make investments in the Build-to-submit form ("build, operate, and transfer").

To avoid the difficulty in calculating the magnitude of the taxpayer for that particular Taxpayer group, based on practical considerations or in accordance with the degree of tax imposition in such areas of business, the Minister of the Union of Tax (Claw) is a tax. Finance is authorized to assign a Special Count Norma to calculate the magnitude of the net income from that particular Mandatory Tax.

Number 18 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 18

Article 16

The Income Income Tax is the basis of the calculation to determine the magnitude of the owed Income Tax. In this Act, the two groups of the tax, which are the domestic tax of the country and the foreign tax of the country, are two ways to determine the size of the taxable income, which is the case of the tax on the tax. The calculation of the usual measure and calculation using the calculation norm.

In addition there is a way of calculating by using the Special Count Norma, which is assigned to a particular Mandatory Tax based on the decision Finance Minister.

For Wajib overseas Tax Determination of Earnings Kena Taxes differentiated between:

(1) Foreign Taxes running the business or performing activities through a fixed form of enterprise in Indonesia;

(2) Other overseas taxes.

Verse (1)

For the internal Tax Wajib Hosting the books, the tax returns are calculated using the following example:

-Gross circulation Rp 300,000.00

-Cost to get,

billing and maintain

earnings of Rp 255,000.00

___________________ (-)

-Laba venture

(earnings neto venture) Rp 45.000.00

-Other income is Rp 5.000.000.00

-Charges ...

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-Cost to get,

billing and maintain

other earnings

that is Rp 3.000.00

_________________ (-)

Rp 2.000.000.00

__________________

The total amount of earnings

neto Rp 47.000.00

-Compensation loss Rp 2.000.000.00

___________________ (-)

-Income taxable

(for Wajib Body Tax) Rp 45.000.000.00

-Deductions

Revenue is not taxable

ntuk Wajib People Tax personal

(wife + 3 children) Rp 5.184.000.00

_________________ (-)

-Income taxable

(for Wajib Tax

private person) Rp 39. 816. 000.00

Verse (2)

For the Taxib Private person who is entitled to not host the ledger, its tax returns are calculated using the Neto Earning Calculations for example as follows:

- Gross circulation of Rp 300 .000.000.00

-Income neto

(according to Norma Count)

for example 20% Rp 60.000.000.00

-another neto earnings Rp 5,000.000.00

_________________ (+)

-The entire amount

earnings of neto Rp 65 .000.00

-Income ...

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-Income Is Not Tax

(wife + 3 Children) Rp 5.184.000.00

_________________ (-)

Taxable Income Rp 59.816.000.00

Paragraph (3)

For Mandatory. Foreign taxes that run the business or perform activities through a fixed form of business in Indonesia, the way that the income calculaers are essentially the same as the way that the tax revenue is calculated for the internal tax of the body. The country Since the form of an effort remains obligated to host the books, the income of the tax returns is calculated by the manner of the usual calculation.

Example:

-Gross circulation Rp 400,000.00

-Cost to get,

billing and maintaining earnings of Rp 275,000.00

__________________ (-)

Rp 125.000.00

-Interest rate Rp 5.000.000.00

-Direct sales of goods

by the headquarters that

a type of goods that

sold a fixed venture form Rp 200,000.00

-Cost to get, collect

and maintain a revenue of Rp 150.000.00

___________________ (-)

Rp 50,000.000.00

-Dividen received or

acquired the headquarters that

has an effective relationship

with a fixed effort of Rp 2,000.00

_________________ (+) Rp 182.000.00

-charges according to Section 5 of the paragraph (3) Rp 7.000.000.00

__________________ (-)

-Earnings ...

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-Income Tax Is Rp 175,000.00

Verse (4)

Example:

For example, the non-breeding person whose subject tax liability as the subject of domestic tax is 3 (three) months, and in the term it earns Rp 10,000.000.00 then the calculation of the Earnings Received. The tax returns are as follows:

Income for 3 (three) months Rp 10,000.000.00

Earnings a year as large as:

360 /3x30x Rp 10,000.000.00 Rp 40.000.000.00

Reincome does not tax

(wife + 3 children) Rp 5.184.000.00

_________________ (-)

Income Retax Rp 34.816.000.00

Number 19

Article 17

Verse (1)

Example:

Tax amounts of taxable Rp 120,000.00

owed income tax:

1O% x Rp 25.000.00 = Rp 2.500.000.00

15% x Rp 25.000.000.00 = Rp 3.750.000.00

30% x Rp 70.000.00 = Rp 21.000.00 = Rp 21.000.000.00

__________________ (+)

Rp 27.250.000.00

Tax tarif of the foreign tax which runs the business or performs activities in Indonesia through a form Stay in Indonesia, same as the tax rate for Internal Taxes.

Verse (2) ...

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Verse (2)

The change in tariffs as referred to in this paragraph shall be enforced nationwide, starting at 1 (one) January and announced at least 2 months prior to the end of the month. The new fare is effective, as well as the government's proposed to the People's Representative Council of the Republic of Indonesia, to be discussed in order to draft the State Budget of Revenue and Shopping.

Verse (3)

The value of the Taxable Income Layer as referred to in paragraph (1) will be adjusted by adjustment factors, among other levels of inflation. The Finance Minister is authorized to issue a decision governing the adjustment factor.

Verse (4)

Example:

The Income Income Tax of Rp 5,050,900.00 for the application of the tariff, rounded down to Rp 5,050,000.00.

Verse (5) and paragraph (6)

Example (based on example in Section 16 paragraph (4)):

Income taxable Rp 34.816.000.00

Income tax a year:

10% x Rp 25.000.000.00 = Rp 2.500.000.00

15% x Rp 9.816.000.00 = Rp 1.472.400,00

_______________ (+)

Rp 3.972.400.00

The income tax is owed in the tax year (3 months)

(3 x 30 )/360 x Rp 3.972,400.00 = Rp 993,100.00

Verse (7)

The provisions of this paragraph authorize the Government to determine its own personal tax rates that may be final on a certain income type as referred to in Section 4 of the paragraph (2), to the extent no higher than the highest tax rates as set in paragraph (1). The determination of its own tax rate is based on the considerations of simplicity, justice, alignment, and effectiveness in the imposition of taxes.

The number of 20 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 20

Article 18

Verse (1)

This Act authorizes Finance Minister to make a decision on the magnitude of the comparison between debt and capital A company that can be justified for the purposes of calculating taxes In the business world there is a reasonable rate of comparison regarding the magnitude of the ratio between debt and capital ("debt-equity ratio"). If the comparison between debt and capital is very large that exceeds the limits of the natural world, then the company is generally in a less healthy state. In this case for the calculation of the Income Tax, the Act determines the presence of a veiled capital.

Verse (2)

With the growing economy and international trade in line with the era of globalization, it is possible. It happens that the Internal Taxes are growing capital abroad. To reduce the possibility of tax evasion, then against overseas capital planting other than on the business agency that sells its shares in the stock exchange, the Finance Minister is authorized to determine when it is dividend.

Example:

PT A and PT B each have a stake of 40% and 20% on X Ltd. which is placed in the country Q. Stock X Ltd. is not traded on the stock exchange. In 1995 X Ltd. obtained an earnings after tax of Rp 100,000.00.

In that case, the Minister of Finance authorized the following dividends and the base of his calculations.

Verse (3)

The intent of this provision is to prevent tax evasion, which can occur due to the existence of a special relationship. In the event of a special relationship, the probability of income is reported to be less than should be or the cost of charge exceeds the one. In such case, the Director General of the Tax is authorized to return the magnitude of the income and/or costs in accordance with the circumstances in case among the Taxes there is no special relationship. In determining the amount of income and/or such charges may be used in some approaches, such as comparison data, profit allocation based on function or role and from the Tax Wajib which has special relationships and indications and data Another.

So ...

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Similarly the possibility of a veiled capital dispute, by declaring the inclusion of the capital as debt, then the Director General of the Tax is authorized to determine the amount of capital. Such debts are as corporate capital. Such a determination can be done for example through an indication of the comparison between capital and the debt prevalent among the parties that are not affected by the special relationship or by data or other indications.

With Thus the interest paid in respect of the debt is considered to be the inclusion of capital it is not allowed to be subtracted, whereas those of shareholders who receive or acquire it are considered to be a tax on the tax.

Verse (4)

The preferable relationship between Wajib Tax can occur because dependency or attachment one with the other caused because:

a. entitlement or capital inclusion;

b. the presence of mastery through management or use of technology.

In addition to the above, the preferable relationship between Wajib Personal Tax can also occur due to a blood connection or because of marriage.

The letter a

Special relations are considered to be in the case of an ownership relationship with a capital inclusion of 25% (twenty-five percent) or more directly or indirectly. For example, PT A has 50% (fifty percent) of the shares of PT B. The shares by PT A are direct inclusion.

Next if the PT B has 50% (fifty percent) of the shares of PT C, then PT A as the shareholder of PT B It did not immediately have an inclusion in PT C by 25% (twenty-five percent). In this case, PT A, PT B and PT C are considered to be special relationships. If PT A also has a 25% (twenty-five percent) stake in PT D, then between PT B, PT C, and PT D is considered to be a special relationship. Such an ownership relationship above may also occur between persons and persons.

The letter b ...

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Letter b

The preferable relationship between Wajib Tax can also occur due to mastery through management or use of technology, nor is there any ownership relationship. A special relationship is considered to exist if one or more companies are under the same mastery. Likewise, the relationship between several companies that are in this same mastery.

The letter c

The relation of the blood family in a straight line of descent is the father, mother, and child, whereas the same is the relationship between the two families. The relation of the blood family in the bloodline to the side of one degree is the brother.

The penal family in straight line one degree is in-laws and stepchildren, while the family relationship is within the line. offspring to side one degree is in-law-in-law.

Verse (5)

Based on the provisions This is, in this case, a direct or indirect tax rate of 25% (twenty-five percent) or more on the other Taxes, then for the calculation of the Taxpayer Income Tax of Vajib Pajak-Wajib Tax referred to the application of the tax on the tax on the tax on the tax on the tax rate. The low-tariff layer is given only one time alone, namely against the parent tax of the parent. As for the other Tax Mandatory Service in one group, the owed income tax is calculated directly based on the higher rates imposed against the parent Tax or the highest rate.

Which is referred to by the layer The low fare is the tariff layer below the highest tariff layer applied to the Income Tax.

Example:

PT A has a PT B stake of 50% (fifty percent) and PT B owns shares of the PPT. PT C is 60% (sixty percent). Income for Tax or fiscal loss of 1995 for each body for example:

PT A Income Taxable: Rp 200,000.00

PT b Fiscal Loss: (Rp 40.000.00)

PT C Income Taxable: Rp. 70,000,000.00

Count ...

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OWED TAX COUNT:

PT A:

10% x Rp 25.000.00 = Rp 2.500.000.00

15% x Rp 25.000.000.00 = Rp 3.750.000.00

30% x Rp 150.000.00 = Rp 45.000.000.00

________________ (+)

Rp 51.250.000.00

PT B: Nihil.

A fiscal loss of Rp 40.000.00 should not be taken into account of the earnings of neto PT A and PT C.

PT C:

30% x Rp 70.000.00 = Rp 21.000.000.00 = Rp 21.000.000.00

On the Taxable Income PT C amounting to Rp 70.000.00 directly applied 30% (thirty percent), as low-tariff implementation is only done on one Taxes of Taxes only, PT A.

Figure 21

Article 19

Verse (1)

The course of striking price development or change in policy in monetary field may lead to a rapid rate of cost and income, which can result in the onset of the burden. A less reasonable tax. In such circumstances, the Finance Minister is authorized to set the rules on revaluation of fixed assets (revaluation) or indecitation of cost and income.

Verse (2)

Quite clear.

Figures 22 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 22

Article 20

Verse (1)

In order for tax repayment in tax years running close to the amount of taxes to be owed to the tax year in question, then The implementation is done through:

a. Tax deductions by the other in terms of income obtained by Wajib Tax of work, services or activities as referred to in Article 21, tax on income from the effort as referred to in Section 22, and the cuts tax on income from capital, services and certain activities as referred to in Article 23.

b. payment by Wajib Tax itself as referred to in Article 25.

Verse (2)

Basically the tax repayment in years runs is done for each month, but the Finance Minister may determine another term, such as the moment Whether it is a transaction or an acceptable income, so the tax repayment of the year goes well.

Verse (3)

The tax repayment in the year of running tax is the installment of the tax payments that will eventually be taken into account by crediting the income tax owed to the tax year in question.

With consideration of ease, simplicity, certainty, timely tax imposition, and other considerations, then may be regulated tax repayment in years of final running of a given type of income as referred to in Article 4 verse (2), Article 21, Section 22, and Article 23. The final income tax could not be credited with the owed Income Tax.

The number 23 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 23

Article 21

Verse (1)

These provisions govern about the payment of taxes in the year running through tax cuts in income received or acquired by Wajib Tax of the domestic person in connection with work, services and activities. The parties that are required to do the cutting, deposit and reporting of the tax are the employers, government entities, pension funds, bodies, companies, and organizers of the activities.

Letter a

The mandatory workgroup is cutting, Payment and tax reporting is a person or entity that is a parent, branch, representative or unit of the company, paying or debt pay, wages, benefits, honorarium, and other payments under any name to the administrator, employee. or do not employees, in return with respect to work, services, or The activities are done. In the sense of employers, it is also an international organization that is not exempt from the duty of cutting taxes.

The other payment is payment by any name other than salary, wage, allowance, and honorarium, and other payments such as bonus, gratification, tantiem.

Which is not an employee is a person who accepts or earns income from the employers in connection with the bond of employment not fixed, e.g. the artist receiving or obtain an honorarium from the employers.

Letter b

Government items including the treasurer of the Central Government, Local Government, government or government agencies, other state institutions and the Embassy of the Republic of Indonesia abroad that pay salaries, wages, allowances, and other institutions. honorarium, and other payments in connection with work, services, or activities.

Letter c

The pension fund or other bodies such as the body of labor social security guarantees that pension money, old day benefits, savings old days, and other payments similar to any name.

In ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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In the sense of pension money or other payments including either allowances paid periodically or not, paid to the recipient of the pension, the beneficiary Old days, old day savings recipients.

Letters d

In terms of bodies including international organizations that are not excluded based on verse (2). It includes the personnel of personal persons such as doctors, lawyers, accountants, who do free work and act for and on behalf of themselves, not for and on behalf of their partners.

The letter e

The Company, body, or organizer Mandatory activities are withholding tax on reward payments or awards in any form received or obtained by the Tax Taxpayer in the country with respect to an activity. In terms of bodies including governmental bodies, organizations include international organizations, and societies. Activities organized e.g. sports activities, religious, arts and other activities.

Verse (2)

Quite clear

Verse (3)

For employees to remain a tax-cut income is the gross income is reduced by the cost of office, pension, and income is not taxable. In the definition of retirement, it is also an old day allowance or old day savings paid by employees.

For the retired gross income tax cut is the gross income amount reduced by retirement costs and Income Is Not Taxable. In terms of retirees including the recipient of an old day allowance or savings of an old day.

Verse (4)

The income of income deduced tax for daily employees, weekly, as well as other non-permanent employees is the amount of income The gross was reduced-with an income portion not imposed by the Treasury Secretary, with regard to the income of the taxpayer in effect.

Verse (5) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (5)

Quite clearly

Verse (6)

If the employers have done the cutting and the tax repayment correctly, then at the end of the tax year against the employee or Persons who receive only or earn income from one (one) employers, whose taxes have been cut will no longer be required to deliver the Annual Notices Letter, unless the employee or the person earns another income. which is not the income that his taxes have paid or cut off and is final according to this Act, for example tax cuts as referred to in paragraph (7).

Verse (7)

For example, certain income from activities such as sports prizes and sweepstakes.

Verse (8)

Quite clear

Figures 24

paragraph 22

Verse (1) and paragraph (2)

Based on this provision can be designated as tax collector is:

-Government treasures, including the treasurer of the Central Government, Local Government, government or government agencies and other state institutions, with regard to the payment of the handover of goods;

-certain bodies, both government bodies and private-related with activities in the field of import, or business activities in other fields.

The tax rate is based on these provisions, intended to increase the role as well as the public in the collection of funds through the tax payment system and for the purposes of simplicity, ease, and the timely tax imposition.

In this relationship the Finance Minister sets out the magnitude of the levies that can be final.

Implementation ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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The implementation of this provision is set by the Minister of Finance by considering another:

-selective tax collectors ' appointment, for the sake of tax-voting. Effective and efficient;

-not interfering with the traffic flow of the goods;

-a simple, simple, and reporting procedure.

Figure 25

Article 23

Verse (1)

Conditions in this paragraph set the tax cut on income received or acquired. In the country, in the country, and in the form of an entity that is derived from the capital, the surrender of the service, or the hosting of activities other than those that have been deduced, as referred to in Article 21 of the paragraph (1) of the letter e, paid or owed by the body The government or the domestic tax subject, the organizer of the activities, the form of a fixed effort, or the representative of another foreign company.

The basis of the tax cuts in this verse is distinguished between gross income and neto-income estimates. The basis of tax cuts for income payments in the form of dividends, interest, royalties, gifts, and awards is the gross amount of income. The basis for rent and other income with respect to the use of the estate is neto's estimated earnings.

The income in exchange for services required for tax cuts is the services of engineering, management services, construction services, and income. Consulting services, and other services that are received or acquired by a Service Tax in addition to the services that the Income Tax has cut in Section 21.

For the income of the deposit interest paid by the cooperative's tax cut by 15% (fifteen percent) and final. For the income of a cooperative interest that does not exceed the limit set by the Minister of Finance paid by the cooperative to its members is not cut in Article 23 of the Income Tax.

Verse (2) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (2)

In order for this provision to be implemented well and dynamically in accordance with the development of the business world, then the Director General of Tax is authorized to establish Other types of services and the size of neto's estimated earnings. In setting the magnitude of neto's estimated earnings, the Director General of Taxes in addition to utilizing internal data and information, can pay attention to the opinions and information of the related parties.

Verse (3)

Quite clear

Verse (4)

Pretty clear

Figures 26

Article 24

Basically Wajib Tax is in tax debt over the entire income, including earnings received or obtained from abroad. To ease the double tax burden that may occur due to tax imposition on income received or acquired abroad, these provisions govern the calculation of the large amount of tax on income paid or in debt outside of the country. A country that can be credited with the tax owed to the entire income of Wajib Tax in the country.

Verse (1)

The tax on income paid or in debt abroad is credited to the debt owed. In Indonesia, only taxes are directly imposed on the income received or acquired Wajib Tax.

Example:

PT A in Indonesia was the sole shareholder of Z Inc. in State X. Z Inc. in 1995 earned a profit of US$ 100,000.00. The applicable Income Tax in the X state is 48% and the Dividen Tax is 38%. The tax calculation of such dividends is as follows:

Advantage ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Advantage of Z Inc. US$ 100,000.00

Income Tax (Corporate

income tax) over Z Inc. (48%) US$ 48,000.00

________________ (-)

US$ 52,000.00

Tax over dividend (38%) US$ 19.760.00

Dividen sent to Indonesia US$ 32.240.00

Credited Income Tax against all Taxable Income Tax of PT A is a tax directly imposed on the earned income or acquired abroad, in the above example of a sum of US$ 19.760.00.

The corporate income tax of Z Inc. for US$ 48.000.00 is not credited to the income tax on PT A, as the US$ 48,000.00 tax is not directly imposed on the income of the U.S. accepted or acquired PT A from abroad, but rather the tax imposed on the profits of Z Inc. in the country X.

Verse (2)

To provide equal treatment of the income received or obtained from abroad. with income received or acquired in Indonesia, then the magnitude of the tax is paid Or foreign debt can be credited with taxes owed in Indonesia but should not exceed the amount of taxes calculated under this Act.

The way the measure of the magnitude of the tax is credited is set. by the Finance Minister under the authority as set forth in paragraph (6).

Verse (3) and paragraph (4)

In the calculation of tax credits for paid or indebted abroad in the country that may be credited to the tax owed by this Act, the determination of the income source becomes very Important. Furthermore, these provisions set about the determination of the income source to account for such foreign tax credits.

Given ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Given this Act is a broad definition of income, then in accordance with the provisions of the paragraph (4) the determination of the source other than that of the paragraph (3) For example, the same principle is used in the same principle as in verse (3), for example A as the domestic tax of a house in Singapore, and in 1995 the house was sold. The profits gained from the sale of the house were in Singapore's income, as the house was located in Singapore.

Verse (5)

In the event of a reduction or tax return on which income is due to the loss of money. Paid for abroad, so that the amount of tax that can be credited in Indonesia is less than the sum of its original calculations, then the difference is added to the income tax owed by this Act. For example, in 1996, Wajib Tax received a tax reduction in the income of the 1995 tax year of Rp 5,000,000.00, which had originally been included in the amount of tax credited to the tax owed for the 1995 tax year, then the amount of Rp 5,000,000.00, it was added to the Income Tax owed in the tax year of 1996.

Verse (6)

Pretty clear

Figures 27

Article 25

These provisions set about the broad calculation of the monthly installment to be paid by Wajib Tax itself in the running year.

Verse (1)

Example 1:

owed income tax based on the Tax Annual Notice

Earnings of 1994 Rp 50,000.000.00,

minus:

a. Income tax cut

employers

(Article 21) Rp 15.000.000.00

b. Taxes ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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b. Income tax that

levied by other parties

(Article 22) Rp 10,000.000.00

c. Income Tax

cut by the other party

(Article 23) Rp 2,500.000.00

d. Income Tax Credit

overseas

(Article 24) Rp 7.500.000.00

_________________ (+)

The amount of tax credits Rp 35.000.000.00

__________________ (-)

Margin Rp 15.000.000.00

Magnitude of the installment The tax that must be paid alone every month for 1995 is Rp 1,250,000.00 (Rp 15.000.000.00: 12).

Example 2:

If the Income Tax is referred to in the example above with respect to the income received or obtained for the portion of the tax year covering the term of 6 (six) months in 1994, then the magnitude of the installment the monthly payable monthly in 1995 is Rp 2,500.000.00 (Rp 15.000.000.00: 6).

Verse (2)

Given the deadline for the delivery of the annual Notice of Income Tax Revenue is 3 (three) months after the tax year ends, then the amount of tax installments must be paid alone by Wajib Tax before the deadline The delivery of the Income Tax-Annual Notices Letter cannot be calculated according to the provisions of paragraph (1). Under this provision, the magnitude of the tax installment for the months prior to the deadline for the delivery of the Income Tax Annual Notice is the same as the tax instalment for the last month of the tax year ago, but not can be smaller than the average monthly installment of the tax year ago.

Example: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example:

If the Income Tax of the Year Notice was delivered by Wajib Tax in March 1995, then the magnitude of the tax installment should be paid by the Tax Wajib to January and March 1995 was a tax installment in December 1994, for example Rp 1,000.000.00.

However, if in September 1994 it was issued a tax installment reduction decision to be nil, so the tax instalment from October to December 1994 became nil, then the amount of tax installments should be paid Mandatory Taxes each month for January and March 1995 is based on the average monthly installment calculation of the last year, which is Rp 750,000.00 (9 x Rp 1,000.00: 12).

Verse (3) and paragraph (4)

If it has been issued a tax decree for 2 (two) year tax years before the Year of the Year of the Income Tax Year of the Income Tax that results in a tax installment greater than the tax installment is based on Annual tax on income tax years ago, the monthly installment is calculated according to the last tax decree.

If in the year running the tax decree issued for 2 (two) previous tax years that generate a larger amount of tax installers than the number of month tax installers Previously, the tax instalment is calculated based on the last tax decree. The change in this tax installment is valid from the following month after the month of the month of the tax decree.

Example:

Based on the 1994 Revenue Tax Annual Notice of Wajib Taxes in March 1995, the bulk calculation of the tax installment payable was at Rp 1,250,000.00. In June 1994, it was published in the tax anniversary of the tax year of 1992 which resulted in the magnitude of the tax installment per month of Rp 2,000.000.00. In October 1994, the tax-year decree issued a tax installment per month of Rp 1,500,000.00.

Based on the terms of the paragraph (3), then the magnitude of the tax installment starting in March 1995 is at Rp 1,500,000.00 with the calculation of the tax installment based on the tax decree of 1993, while the magnitude of the tax installment for the month January and Pebruari 1995 are calculated based on the provisions of the verse (2).

Next ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Next time in October 1995 issued a tax decree for the tax year 1994 resulting in the magnitude of the tax installment for each month of Rp 1.750,000.00, then under the terms of the paragraph (4), the magnitude of the tax installment starting in November 1995 was Rp 1,750,000.00.

Verse (5)

If the taxes owed according to the Income Tax of the Year Notice the Income Tax is delivered is less than the tax on which it has been paid, cut, and levied during the tax year concerned, and therefore Taxpayers apply for a refund of overpayment of tax payments or a plea to account with other tax debts, before the Director General of Tax gives a decision regarding the return or calculation of the excess tax, the magnitude of monthly installments is the same as the tax installment last month of the tax year ago, but should not be smaller than the average monthly installment of the tax year ago.

After the decision of Director General Tax, then the monthly installment of the next month after that decision date, calculated Based on that decision.

Example:

The 1994 Revenue Tax Annual Notice of Delivered Wajib Taxes in March 1995 shows a tax overpayment of Rp 40.000.000.00, while the monthly installment In 1994 it was Rp 1,000,000.00.

On the course of the 1994 tax refund request, the Director General of Tax issued a decision in August 1995 that resulted in the magnitude of the tax installment for each month being nil. Under this provision, the magnitude of the tax installment per month for January to January 1995 amounted to Rp 1,000.000.00 and starting in September 1995 was nil.

Verse (6)

Basically the magnitude of the payment The tax instalment by Wajib Tax itself in the year runs as can be likely to approach the amount of tax that will be owed by the end of the year. Therefore, under this provision, in certain matters the Director General of the Tax is authorized to adjust the bulk of the tax installments that must be paid by the Tax Wajib in the running year, if there is a Damages for damages, or whether or not for a change in the state of the business or activities of the Tax Mandatory Service.

Example 1: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example 1:

-Earnings of PT X in 1994 Rp 120.000.00

-Rest of the previous year's losses

which can still be compensated Rp 150,000.00

-Rest of the The most recent losses

compensated 1994 Rp 30,000.000.00

The Income Tax Calculation Of Article 25 of 1995 is:

-The earnings used by the calculation of the Income Tax installment calculation

Section 25 = Rp 120.000.000.00-Rp 30.000.000.00 = Rp 90.000.000.00

-Income tax of debt:

10% x Rp. 25.000.000.00 = Rp 2.500.000.00

15% x Rp. 25.000.000.00 = Rp 3.750.000.00

30% x Rp. 40.000.000.00 = Rp 12.000.00 = Rp 12.000.000.00

__________________ (+)

Rp 18.250.000.00

-If in 1994 there was no Income Tax. The monthly tax installment of PT X in 1995 = 1/12 x Rp 18.250.000.00 -Rp 1.520.833.33 (rounded up to the Rp) 1,520.833.00).

Example 2:

Regular Income of Wajib Tax A from a trade venture in 1994 Rp 48.000.000.00 and the irregular income of converting the house to 3 (three) years paid at once in 1994 amounted to Rp 72.000.00. Given the disorderly income at once received in 1994, the income used as the basis for the calculation of Income Tax Article 25 of Wajib Tax A in 1995 was simply of such regular income.

Example 3: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example 3:

A change in the state of the venture or the activities of Wajib Tax may occur due to a decrease or increase in effort. PT B which moved in the field of thread production in 1995 paid a monthly installment of Rp 15,000.000.00.

In June 1995 the factory of PT B burned down, therefore based on the decision of Director General Tax starting in July 1995 monthly installment of PT B can be adjusted to be smaller than Rp 15.000.000.00.

On the contrary, if PT B is increased in business, for example, the increase in sales and estimated earnings of its taxes will be greater than the previous year, then PT B's monthly installment obligation can be adjusted. by the Director General of the Tax.

Verse (7)

In principle the calculation of the monthly installment in the year runs is based on the Annual Tax Revenue Letter of the Year ago. However, under this provision, the Finance Minister is authorized to set the basis of the monthly installment of the monthly installment in addition to based on that principle in order to better approach the view based on the data that can be used for define the amount of tax that will be owed by the end of the year as well as the basis of calculation of the amount (magnitude) of the tax installment in the year running.

For the new Wajib Tax begins to run the business or conduct activities in the tax year walk, needs to be set to determine the magnitude of the tax installment, because of Wajib Tax has not included the Income Tax Annual Notice of Notice.

The determination of the tax installment is based on the reality of Wajib Tax's efforts or activities.

For the Tax Wajib moving in banking, the state-owned business agency and an area owned enterprise, there is an obligation to convey to the Government of the report relating to financial management in a given period, which may be used as the basis of the calculation to determine the magnitude of the tax installment in the years running.

In the development of the business world, the possibility exists Certain fields of business or Mandatory Tax whose tax instalments can be calculated based on the data or the reality that exists, so it approaches the kefrying.

Verse (8) ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Verse (8)

The tax paid Wajib Tax of the private person traveling abroad is a tax installment payment in a running year which can be credited with the amount of Tax The earnings are owed by the end of the year. Based on certain considerations, such as state duty, social, cultural, educational, religious, and international conduct, with government regulations are set about the exclusions of tax-paying obligations as referred to in the This provision.

Figure 28

Article 26

For the income received or obtained by the foreign tax of Indonesia, this Act follows the two tax imposition system, which is the fulfillment of its own tax obligations for the Compulsory overseas tax that runs the business or performs activities through a fixed form of business in Indonesia, and deductions by the parties that are required to pay for the other foreign taxes.

These provisions set about cuts to the Indonesian sourced income received or acquired by the Mandatory Service. External taxes other than the form of a fixed effort.

Verse (1)

The tax cuts under this provision are mandatory by the government body, the domestic Tax Subject, the organizer of the activities, the form of a fixed effort, or a representative of the company Other foreign countries, who make payments to Wajib foreign taxes other than A fixed form of effort in Indonesia, at a rate of 20% (twenty percent) of the gross amount.

The mandatory income types are classed as in:

1. earnings sourced from capital in the form of dividends, interest including premium, diskonto, and rewards due to the warranty of debt return, royalties, and other income in connection with the use of the treasure;

2. rewards with respect to services, jobs, and activities;

3. gifts ...

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3. gifts and awards by name and in any form;

4. Pension and other regular payments.

In accordance with this provision, for example, the Internal Tax Subject body pays Rp 100,000.00 to Wajib Foreign Tax, then the Tax Subject in the country. obligation to cut income Tax by 20% (twenty percent) of Rp 100.000.00.

For example, for example an athlete from abroad who took part in a marathon race in Indonesia, and then seized the prize money, then on top of that prize is charged with a 20% tax. (twenty percent).

Verse (2) and paragraph (3)

These provisions set about tax cuts in the income received or acquired by the foreign tax Wajib sourced in Indonesia, other than the income as referred to in paragraph (1), i.e. the income from the sale of the estate and insurance premiums, including the reinsurance premium. For this income the tax cut was 20% (twenty percent) of neto's estimated earnings and final. The Minister of Finance is authorized to establish the magnitude of the estimated earnings of neto referred to, as well as other matters in the course of implementing the tax cuts. This provision is not applied in the case of the Foreign Income Tax (s) running the business or performing activities through a fixed form of business in Indonesia, or if the income of the sale of the property has been taxed based on Article 4 of the paragraph (2).

Paragraph (4)

For the income of taxable after deduced from a fixed business form in Indonesia, tax cut by 20% (twenty percent).

Example: ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Example:

Income taxable form a fixed effort

in Indonesia Rp 17. 500,000.000.00

Income Tax:

1O% x Rp 25.000.000.00 = Rp 2.500.000.00

15% x Rp 25.000.00 = Rp 3.750.000.00

30% x Rp 17.450.000.00 = Rp 5.235.000.00

____________________ (+)

Rp 5.241.250,000.00

_____________________ (-)

Income taxable after

minus the tax of Rp 12.258.750.000.00

PPh deduced by 20% Rp 2.451,750,000.00

But if earnings after minus the tax it amounted to Rp 12.258.750,000,00 reimplanted in the Indonesian archipelago decision of the Minister of Finance, then on that income is not tax-cut.

paragraph (5)

In principle the tax cut of the Foreign Tax Wajib is final, but on the income as referred to in Article 5 verse (1) the letter b and the letter c, and on the income of a person or a foreign entity that changes the status of a domestic tax or a fixed form of business, the tax cut is not final so that the tax cut is not final. can be credited in the Income Tax Annual Notice Letter.

Example:

A as a foreign power person makes a working agreement with PT B as Wajib Tax in the country to work in Indonesia for a period of 5 (five) months counting from I January 1995. On 20 April 1995, the agreement was extended to 8 (eight) months so that it would end on 31 August 1995. If such a labor agreement is not extended then the status of A is fixed as the Wajib Foreign Tax. With the length of the work agreement, the status of A changed from the foreign tax of Wajib to Wajib Tax in the country from 1 January 1995. During January and March 1995 for gross income A has been cut by Article 26 of the Income Tax by PT B.

Based on ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Based on this provision, it is to calculate the Income Tax owed to the earnings of A for January to August 1995, the Income Tax Article 26 which has been cut and defiled PT B over earnings A to March, can be credited against tax A as the domestic Tax Wajib.

Figures 29

Article 27

Quite clear

Figures 30

Title Chapter VI is replaced Become the "TAX CALCULATION AT THE END OF THE YEAR"

Figure 31

Article 28

Verse (1)

Tax has been paid off in years of running, whether paid for by Wajib Tax or deduced by other parties, may be credited with the tax owed by the end of the tax year in question.

Example:

Income Tax

owed Rp 80.000.00

Tax Credit:

Tax cuts from

work (Article 21) Rp 5,000.000.00

Tax by

other party (Article 22) Rp 10,000.000.00

Tax cuts

of capital (Article 23) Rp 5,000.000.00

Tax Credit outside

country (Article 24) Rp 15,000.000.00

Repaid by

Wajib Tax (Article 25) Rp 10,000.000.00

_________________ (+)

The amount of Income Tax ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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THE AMOUNT OF INCOME TAX

THAT CAN BE CREDITED RP 45.000.00

_________________ (-)

INCOME TAX

STILL MUST BE PAID RP 35.000.000.00

Verse (2)

Quite clear

Figures 32

Article 28A

In accordance with the provisions in Section 17 B paragraph (1) of the Code of General Terms and Taxation, the Director General of Tax or the authorized official To conduct an examination prior to the return or calculation of the excess taxes.

Things that must be a consideration before being done the return or calculation of the excess tax is:

a. material correctness about the magnitude of the debt Income Tax;

b. the validity of the evidence of levies and the evidence of tax cuts and evidence of tax payments by Wajib Tax itself during and for the tax year concerned.

Therefore for the benefit of vetting, the Director General of Tax or Other officials are authorized to conduct checks on financial statements, books, and other records and other checks related to the determination of the debt of the owed income, the truth of the tax amount and the the amount of tax that has been credited and to determine the magnitude of excess payment That tax should be returned. This examination means to ensure that the money that will be paid back to Wajib Tax as restitution is true of the right of Wajib Tax.

The number 33 ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Figures 33

Article 29

The provisions of this section require that Wajib Tax to pay off the tax shortfall in debt according to the provisions of this Act prior to the Letter Annual Notice of Income Tax is delivered. If the year of the book is equal to the year of tawim, the tax shortage is required to be repaid no later than 25 March after the end of the tax year, whereas the year of the book is not the same as the taxable year, for example beginning on 1 July. As of June 30, the mandatory tax shortfall is repaid as late as September 25.

Figures 34

Article 30

Quite clear

Figures 35

Article 31

Quite clear

Figures 36

Section 31A

One of the principles that needs to be firmly held in the taxation legislation is Enforced and implemented similar treatment of all Taxes or against cases in the field of taxation that are the same, by adhering to the applicable laws. Therefore, any convenience in the field of taxation if absolutely necessary must refer to the above rules and need to be maintained in order not to deviate from the intent and purpose of which it is given.

The purpose and the In the event of its ease, in particular, to succeed the sectors of economic activity that are high priority on national scale, especially for export. It is also possible to encourage the development of remote areas, such as those in the eastern region of Indonesia, in order for the development of development.

Ease ...

PRESIDENT OF THE REPUBLIC OF INDONESIA

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Ease of granted is limited in form:

a. more accelerated depreciation and amortization;

b. compensation for longer but not more than 10 (ten) years;

c. Tax deduction of income on dividends as referred to in Article 26.

Similarly these provisions may be used to accommodate the possibility agreement with the country or other countries in the field of trade, investment, and other fields.

Figures 37

Article 32

Quite clear

Figures 38

Section 33A

paragraph (1)

If the Tax Wajib using book year ending June 30, 1995 or earlier (not the same as the year takwim), then the year the book was a 1994 tax year. The taxes owed in that year remain calculated by the Law No. 7 of 1983 as amended by Law No. 7 of 1991. Whereas for the Tax Wajib whose book year ended after June 30, 1995, it was mandatory to calculate its taxes starting in the 1995 tax year under Law Number 7 of 1983 on Income Tax, as amended last by This law.

Verse (2) and paragraph (3)

Wajib Tax has obtained the Finance Minister's Decision concerning the taxation facility concerning the start of production published before January 1, 1995 can enjoy the facility taxation given up to the term specified in the decision which Concerned. Thus, since January 1, 1995, the decision on the start of production is not published again.

Verse (4) ...

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Verse (4)

The provisions of the tax in contract for the results, contract of works, or the mining company's cooperation agreement still in effect upon the enactment of this Act, It is stated that it remains in effect until the end of the contract for the results, contract of work, or the mining company's cooperation agreement. Although this Act is already in effect, however, the tax liability for the Taxes which is bound to contract for results, contracts of works or cooperation agreements with the mining company remains calculated by contract or agreement.

Thus, the provisions of this Act are only applied to the imposition of tax on the income received or obtained by Mandatory Tax in the field of petroleum and gas mining enterprise and other common mining enterprise. performed in the form of a work contract, a contract for the results, or a cooperation agreement mining company, signed after the enactment of this Act.

Figures 39

Article 34

Quite clear.

Figures 40

Article 35

With Government Regulation are further regulated things yet reasonably set in this Act, i.e. all regulations necessary for this Act may be exercised with its best, including the transitional regulations.

Article II

Quite clearly

Article III

Quite clearly

ADDITIONAL SHEET OF STATE REPUBLIC OF INDONESIA NUMBER 3567