If there is a transfer of tangible assets that meets the conditions of clause (3), letters a and b of Article 4, the remaining book value of the asset cannot be treated as a loss by the transferor. In the event of the transfer of intangible assets or rights as mentioned in subsection income in the year the transfer took place. If the tax liability of an individual resident taxpayer only covers a fraction of a taxable year as referred to in subsection 6 of Article 2A, his taxable income is calculated by multiplying the net income thereof by a fraction that would amount to a full year's net income.
The tax rate mentioned in paragraph (1) subparagraph b becomes 25% (twenty-five percent) which is applied starting from the tax year 2010. 2b) The subject as a resident Taxpayer and the public company of which at least 40% have paid in capital traded on the Indonesia Stock Exchange and meets other certain requirements may receive a rate of 5% (five percent) lower than the tax rate as mentioned in paragraph (1) subparagraph b and paragraph (2a), i which is determined by or based on Government Regulation. 2c) The tax rate applicable to the dividend received by an individual resident Taxpayer is a maximum of 10% (ten percent) and final in nature. 2d) Further regulation related to the tax rate from paragraph (2c) will be determined by the Government Regulation. For the purposes of applying the tax rates referred to in paragraph (1), the amount of taxable income shall be rounded to thousands.
For the purpose of calculating the tax liability from the fifth paragraph, one month is considered 30 (thirty) days. 3d) The amount of income received by an individual resident taxpayer from an employer that is a branch of a non-resident entity can be adjusted by the tax authority if the employer transfers the payment in the form of expenses or other expenses paid to his person. belonging. 3e) Implementation of regulations from paragraphs 3.b, 3.c and 3.d shall be prescribed or based on a regulation by the Minister of Finance.
TAX PAYMENT DURING THE CURRENT YEAR Article 20
The tax rate applicable as referred to in paragraph (5) for unregistered resident Taxpayer is 20% (twenty percent) higher than that registered resident Taxpayer. When calculating the limit of allowable tax credit, the source of income is determined as follows: the source of income from shares and other securities and capital gain from transfer of share is the country where the issuing company is domiciled;. the source of income in the form of interest, royalties and rents in connection with the use of movable assets is the country where the payer or the party claiming the deductions therefrom is a resident;. The source of income from the transfer of some parts or all mining rights or the proof of participation in financing or funding in the mining company is the country where the location of the mines is located;. gains derived from transfer of immovable property is the country where the immovable property is located; and. profits derived from transfer of assets that are part of a permanent establishment is the country where the permanent establishment is located.
Withheld income tax as stated in Article 21, Article 23 and withheld income tax as stated in Article 22; and. The taxpayer is granted an extension of the deadline for filing the annual tax return;. Withholding tax from income referred to in paragraph (1), subparagraphs b and c of Article 5; and.
If the tax to be paid in a tax year is less than the permitted tax deduction as referred to in subsection If the tax to be paid in the tax year is greater than the permitted tax deduction as mentioned in subsection
OTHER PROVISIONS
If the tax to be paid in the tax year is greater than the permitted tax deduction as mentioned in subsection 2) The amount of the gross income as mentioned in paragraph 1 can be increased by regulation of the Minister of Finance. The procedure in connection with the imposition of tax and its sanctions pursuant to this Act is subject to Act Number 6 of 1983 on the general provisions and tax procedures as last amended by Act Number 28 of 2007 on the third amendment of Act No. The Government is authorized to enter into an agreement with the government of foreign countries to avoid double taxation and prevent tax evasion.
Provisions on the taxation of interest or discount on government bonds that are traded in other countries on the basis of mutual treatment agreements with other countries are determined by government regulation.
INTERIM PROVISIONS
The procedure in connection with the imposition of tax and its sanctions pursuant to this Act shall be subject to Act No. 6 of 1983 on the general provisions and tax procedures as last amended by Act No. 28 of 2007 on the third amendment of Act No. 6 Year 1983 on the general provisions and tax procedures. When this Act enters into force, all implementing provisions relating to income tax shall remain valid, provided that they do not conflict with the provisions of this Act.
CLOSING PROVISIONS
If property is transferred in exchange for shares or capital shares, any profit in the form of the difference between the market price of the transferred property and the book value constitutes income. Exempted from the taxable object in this circumstance is income from capital invested in certain sectors provided for in the Minister of Finance's decree. Therefore, the determination of the specific sectors must be determined by decree of the Minister of Finance.
For the purpose of imposing the tax, the entities mentioned in this provision, which constitute a group of members, are subject to taxation as a unit, namely at the level of the entity itself. Administrative expenses incurred by a head office to support the business or activities of a permanent establishment in Indonesia may be deducted from the income of the permanent establishment. That non-deductible interest can be capitalized to add to the cost of the stock.
However, based on the regulation of the Minister of Finance, the following in-kind compensation or benefit can be deducted from the employers' gross income and will not be considered as income for the employees received. Therefore, any wages received by members do not constitute payments that are deductible from the entity's gross income. The difference between the market price and the book value of the property exchanged constitutes taxable gain.
The difference between the market price and the book value of the property being transferred is considered taxable income. If a Taxpayer chooses the declining balance method, the book value must be fully depreciated at the end of the useful life. With the approval of the Director General of Taxes, the depreciation of the tractor could start in the year 2010.
Generally, profit or loss on a property transfer is taxed in the year of the transaction. To facilitate the calculation of the net income of such taxpayers, the Director General is empowered to issue an estimated profit. For this purpose, the taxpayer must notify the Director of Taxation within the first 3 (three) months of the relevant tax year.
This law authorizes the Minister of Finance to prescribe the ratio between the company's debts and the company's equity, which is valid for tax purposes. According to this provision, the amount of the tax installment for the months preceding the due date of filing the income tax return is equal to the tax bracket of the last month of the previous year. The tax term adjustment applies from the month following the issuance of the tax notice.
Facts and conditions in the taxpayer's business must be taken into account when determining the amount of the tax installment.
