PPh Article 22: Rates, How to Calculate and Report Periodic Income Tax Returns 22

In the income tax collection mechanism in Indonesia, there are several types and forms, such as: Income Tax article 21, PPh article 22 PPh article 23 and various others. This article will discuss PPh Article 22 which regulates taxes involving individual transactions.

Income Tax Article 22 is one of the mechanisms used by the government to optimize tax revenues, ensure taxpayer compliance, and to control and monitor domestic economic transactions.

Definition

Article 22 of the Income Tax Law in Indonesia regulates the collection of income tax (PPh) on imports of certain goods, delivery of goods to the government, and delivery of goods and services by entrepreneurs to buyers or recipients of services. In some cases, Income Tax Article 22 can also apply to certain transactions that are considered to have the potential for tax avoidance.

Collection of Income Tax Article 22

Imported goods: PPh Article 22 can be collected by importers when importing goods. So, if we import goods from abroad, we are subject to Article 22 tax deductions.

Purchase of Goods by the Government: Income Tax Article 22 is also collected by government agencies when purchasing goods. If we sell goods to the government, there is also an Article 22 tax deduction.

Domestic Transactions: In some cases, Income Tax Article 22 can be collected from domestic sales or delivery transactions of goods or services. This is for sales and purchase transactions or handover of goods or services within the country which can be subject to Article 22 deductions, depending on the conditions.

Reporting and Depositing

Taxpayers who have collected PPh Article 22 must report and remit the tax that has been collected to the local Tax Office, by following the provisions and procedures determined by the Directorate General of Taxes.

Income Tax Article 22 that has been collected can be counted as a tax credit and can be compensated with the tax that still has to be paid by the Taxpayer.

Well, this depends on the type of transaction and what goods or services. So, it's better to check the latest regulations or ask a tax consultant for details.

For those who have deducted Article 22 tax, the tax money that has been deducted can be counted as a tax credit. So, it can reduce other taxes that must be paid to the government.

In essence, PPh Article 22 is one way for the government to collect tax money from various economic transactions in Indonesia. And it's always good to always be updated information about taxes, because the rules can change. So, don't forget to consult a tax expert or read the latest regulations!

Article 22 Income Tax rates

Article 22 PPh rates can vary, depending on the type of transaction and the type of goods or services provided. Further rates and conditions can be seen in the applicable tax regulations.

PPh Article 22 does have several rules, rates and calculation methods that taxpayers need to pay attention to. The following is a more detailed explanation regarding rates, how to calculate them, and how to report Periodic Income Tax Returns 22 in a simpler way:

How to Calculate Income Tax Article 22

Usually, PPh Article 22 is calculated as a certain percentage of the transaction value (sales price or gross income).

Find out the rates that apply to the transactions you make.

Multiply the tax rate by the transaction value to get the amount of PPh Article 22 that must be collected.

After calculating PPh Article 22, the Taxpayer must report it via Periodic Income Tax SPT 22.

Periodic Income Tax Returns 22 must usually be reported every month or according to the period determined by tax regulations.

The amount of tax that has been collected must be deposited into the state treasury account through the perception bank.

Don't forget to save proof of withholding and proof of tax deposit as proof of reporting and paying tax.

Simple Example:

For example, you sell goods to the government with total sales of IDR 100.000.000 and the PPh Article 22 rate is 1,5%.

For example, you sell goods to the government with total sales of IDR 100.000.000 and the PPh Article 22 rate is 1,5%.

Income Tax Article 22 that must be collected:

IDR 100.000.000×1,5%=IDR 1.500.000

So, you have to withhold PPh Article 22 in the amount of IDR 1.500.000 and deposit it to the tax office, and report it in the Periodic Income Tax SPT 22 according to the applicable reporting schedule.

So, you have to withhold PPh Article 22 in the amount of IDR 1.500.000 and deposit it to the tax office, and report it in the Periodic Income Tax SPT 22 according to the applicable reporting schedule.

The information above is a general overview, for further details and the latest information, it is recommended to consult a tax consultant or refer to the latest tax regulations from the Indonesian Directorate General of Taxes, because tax regulations can change according to applicable government policies.