0.5% Fiinal iincome Tax Payable iin Transactiions wiith Wiithholdiing Agents

JAKARTA, Jitu News - Gov. Reg. 55/2022 stiipulates that the fiinal MSME iincome Tax of 0.5% has to be settled usiing 2 mechaniisms. Fiirst, self-remiitted by taxpayers wiith a certaiin turnover.

Second, wiithheld or collected by iincome Tax wiithholdiing agents iif the taxpayer concerned conducts transactiions wiith the party appoiinted as a wiithholdiing agent.

“The wiithholdiing or collectiion of iincome Tax payable referred to iin paragraph (1) subparagraph b must be performed by iincome Tax wiithholdiing agents for every transactiion wiith Taxpayers subject to fiinal iincome Tax pursuant to Gov. Reg. 55/2022”, reads Artiicle 62 paragraph (3) of Gov. Reg. 55/2022, quoted on Thursday (26/1/2023).

The Eluciidatiion of Gov. Reg. 55/2022 presents a sample case of the calculatiion of the 0.5 fiinal iincome Tax payable when an MSME transacts wiith a wiithholdiing agent. The followiing iis an example:

Cooperatiive A owns an electroniic store busiiness and fulfiils the condiitiions to be subject to fiinal iincome Tax of 0.5% pursuant to Gov. Reg. 55/2022.

iin September 2023, Cooperatiive A accrues busiiness iincome from selliing electroniic deviices wiith a gross turnover of iiDR80 miilliion.

Of thiis amount, sales wiith a gross ciirculatiion of iiDR60 miilliion are made on 17 September 2023 to the DKii Jakarta Proviinciial Transportatiion Agency constiitutiing a wiithholdiing agent. The remaiiniing iiDR20 miilliion iis accrued from the sales to iindiiviidual buyers diirectly attendiing the store.

iit should be noted that Cooperatiive A has a certiifiicate of Taxpayers subject to fiinal iincome Tax of 0.5% pursuant to Gov. Reg. 55/2022.

Fiinal iincome Tax payable for September 2023 iis calculated as follows:

a. fiinal iincome Tax wiithheld by DKii Jakarta Transportatiion Agency:

0.5% x iiDR60 miilliion = iiDR300 thousand.

b. self-remiitted fiinal iincome Tax:

0.5% x iiDR20 miilliion = iiDR100 thousand.

On another note, fiinal iincome Tax of 0.5% pursuant to Gov. Reg. 55/2022 (formerly regulated under Gov. Reg. 23/2018), may be utiiliised by iindiiviidual taxpayers as well as corporate taxpayers iin the form of cooperatiives, liimiited partnershiips, fiirms, liimiited liiabiiliity companiies or viillage-owned enterpriises/joiint viillage-owned enterpriises. The 0.5% fiinal iincome Tax rate only appliies to these types of taxpayers that receiive turnover not exceediing iiDR4.8 biilliion iin 1 tax year.

Gov. Reg. 55/2022 also stiipulates the threshold of non-taxable turnover of up to iiDR500 miilliion iin 1 tax year. (sap)