TAXATION

RESUMEIncome Tax: Article 23International Accounting

GROUP 3:Muhammad Alvicky S. (1210534006)Wahyunda Risa Putri (1210534008)Karini Belyani S. (1310532041)Nova Genanda Gunawan (1310532033)

Lecturer : Rayna Kartika, SE, M.Com, Ak.

International ClassFaculty of EconomicsAndalas University2014Income tax Article 23

I. Definition

Income tax article 23 is the tax levied on income derived from capital, delivery services, or prizes and awards, other than those already levied tax of Article 21.

II. Collectors withheld Income Tax Article 23

a. Government agencies.b. Domestic corporate taxpayers.c. Organizing activities.d. Permanent Establishment.e. Representatives of other foreign companies.f. An individual taxpayer in a particular country, which is appointed by the Director General of Taxation.

III. Recipients income withholding Tax Article 23

a. Taxpayer in the country.b. Permanent Establishment.

IV. Income Tax Rates and Object of Article 23

a. Income Tax Article 23 is due at a rate of 15% of the gross amounts on the following: Dividends. Interest, including premiums, discounts, and loan guarantee fees. Royalties. Prizes and awards.

b. Income Tax Article 23 is due at a rate of 2% of the gross amounts on the fees for the following: Rentals of assets other than land and buildings. Technical services. Management services. Consulting services. Appraisal services. Actuary services. Accounting, bookkeeping, and attestation services. Design services. Drilling services for oil and gas mining except for those performed by a Permanent Establishment. Support services for oil and gas mining. Mining and services other than oil and gas support. Flight and airport support services Forest felling services. Waste processing services. Labor supply or outsourcing services. Intermediary or agency services. Custodianship and storage services except for those performed by stock exchanges, KSEI and KPEI. Sound dubbing services. Film mixing services. Computer and software-related services. Installation services (for example, of electricity, machinery, or telephone equipment) except for those rendered by licensed construction companies. Maintenance and improvement services (for example, for electricity, machinery, or telephone equipment) except for those rendered by licensed construction companies. Toll manufacturing services (maklon). Investigation and security services. Event organization services. Packaging services. Provision of space and/or time in mass media, outdoor media and other media for the dissemination of information. Pest eradication services. Cleaning services. Catering services.

c. For those who are does not have NPWP will be cut 100% higher than the rate on article 23.

d. The meaning of total amount of gross income paid, provided to be paid, or was due payment by the government, subject to tax in the country, organizing activities, a permanent establishment, or representatives of other foreign companies to taxpayers in the form of domestic or permanent establishment, excluding:

Payment of salaries, wages, honoraria, allowances and other payments as compensation in connection with work paid by taxpayer. Payment of the procurement / purchase of goods or materials (as evidenced by the purchase invoice). Payment to the second party (as an intermediary) to further paid to third parties (as evidenced by third-party invoices accompanied by written agreement). Reimbursement payment that reimbursement amount ostensibly paid by the second party to a third party (as evidenced by invoices or proof of payment has been paid to third parties).

Gross amount should not apply: On income paid in connection with catering services. In terms of income paid in relation to services, has been subject to final tax.

V. Excluded from Withholding Tax Article 23

a. Income paid or payable to the bank.b. Rent paid or payable in connection with lease with option rights.c. Dividend or share of profits derived by the limited liability company as taxpayer in the country, cooperatives, state/enterprises, from equity investment in a business entity incorporated and domiciled in Indonesia with the following requirements: Dividends from retained earning reserves. For a limited liability company, state/enterprises, ownership of shared in entities that provide dividends at least 25% of the total paid-up capital. Part profits derived by members of a limited partnership whose capital is not divided into shares, partnership, association, joint venture firms and includes holders of units in a collective investment contract. SHU cooperative paid by the cooperative to its members. Income paid or payable to the financial services entity that serves as a conduit loan and / or financing.

VI. When Due, Deposit, and Reporting Income Tax Article 23

a. Income tax article 23 payable at the end of the payment, provided to be paid, or was due payment, depending on the events that occurred first.b. Article 23 income tax withholding taxes paid by no later than the 10th calendar month following the month in which the tax payable.c. The Annual Tax Return was delivered to the local Tax office, no later than 20 days after the taxes expired.d. Cutting taxes must provide proof of Withholding Tax Article 23 to the taxpayer or entity that has deducted income tax article 23.

In terms of maturity of deposit or reporting deadline for article 23 to coincide with holidays including Saturdays or public holidays, depositing or reporting can be done on the next working day.