Tugas Video Presentasi Kelompok 2 (Pajak Penghasilan Pasal 26) Mata Kuliah Perpajakan

Summary

This presentation provides an in-depth explanation of Article 26 Income Tax (PPh 26) in Indonesia, focusing on taxes imposed on foreign taxpayers earning income from Indonesian sources, excluding those with a permanent establishment. Key topics include tax rates, types of income subject to taxation (e.g., dividends, royalties, interest), and exemptions under tax treaties. The presentation covers examples, detailed calculations, and the procedural aspects of tax withholding, payment, and reporting deadlines. It highlights the significance of Indonesia's tax treaties with over 70 countries in preventing double taxation and ensuring compliance in international transactions.

Takeaways

• 😀 PPH Pasal 26 is an income tax applied to foreign taxpayers earning income from Indonesia, excluding those with a permanent establishment (BUT) in Indonesia.
• 😀 The tax applies to foreign individuals and companies that do not reside in Indonesia for more than 183 days in a year.
• 😀 Income types subject to PPH Pasal 26 include dividends, interest, royalties, rents, service income, and pensions.
• 😀 The standard tax rate for PPH Pasal 26 is 20% of the gross income, though lower rates can apply through international tax treaties (P3B).
• 😀 Indonesia has signed over 70 double tax avoidance agreements (P3B) with countries like the UK, Japan, and the US, offering reduced tax rates on income types such as dividends and royalties.
• 😀 PPH Pasal 26 is withheld directly by the Indonesian entity making the payment to the foreign taxpayer.
• 😀 Taxpayer subjects include foreign individuals who stay in Indonesia for less than 183 days and foreign companies not established in Indonesia but earning income from Indonesia.
• 😀 Taxable income under PPH Pasal 26 includes not only regular income but also dividends, interest, royalties, and other forms of income from Indonesia.
• 😀 The tax payment must be made by the 10th of the month following the tax event, and the tax report (SPT Masa) should be filed by the 20th of the month following.
• 😀 PPH Pasal 26 helps manage tax obligations in international transactions, ensuring transparency and proper taxation of foreign income in Indonesia.

Q & A

What is PPh Pasal 26 (Income Tax Article 26)?

PPh Pasal 26 is an income tax imposed on foreign taxpayers (both individuals and corporations) who receive income from Indonesian sources, excluding income derived from a permanent establishment in Indonesia.

Who are the subjects of tax under PPh Pasal 26?

The subjects of tax under PPh Pasal 26 include foreign individuals residing in Indonesia for less than 183 days in a year, foreign corporations not established in Indonesia, and entities earning income from Indonesia without having a permanent establishment.

What types of income are subject to PPh Pasal 26?

Income subject to PPh Pasal 26 includes dividends, interest (including premiums, discounts, and return guarantees), royalties, rents, service fees, bonuses, awards, pensions, and other periodic payments.

What is the general tax rate for PPh Pasal 26?

The general tax rate for PPh Pasal 26 is 20% of the gross income, but it may be reduced based on specific provisions in tax treaties, such as the Double Tax Avoidance Agreement (P3B).

How does the P3B (Double Tax Avoidance Agreement) affect the tax rate under PPh Pasal 26?

P3B agreements can reduce the withholding tax rates for foreign taxpayers on specific income, such as dividends, interest, and royalties. The tax rate is determined based on the terms of each bilateral treaty, with examples including rates as low as 8% or 10%.

Can you explain the significance of Permanent Establishment (BUT) in PPh Pasal 26?

If a foreign corporation has a Permanent Establishment (BUT) in Indonesia, it may not be subject to PPh Pasal 26. Instead, the corporation's income will be taxed as part of Indonesia's regular corporate tax system.

How are taxes withheld under PPh Pasal 26?

Taxes under PPh Pasal 26 are withheld by the party making the payment to the foreign taxpayer. For example, a company or entity in Indonesia paying income such as dividends or salaries to a foreign party is responsible for withholding and remitting the tax.

What is the procedure for reporting and paying taxes under PPh Pasal 26?

The tax withheld must be paid to the government by the 10th of the following month. Afterward, it should be reported through an SPT (Surat Pemberitahuan Masa) form by the 20th of the following month.

What are the conditions for exemption from PPh Pasal 26 for reinvested income?

Income from a foreign taxpayer may be exempted from PPh Pasal 26 if it is reinvested in Indonesia. The reinvestment must be in the form of equity participation in an Indonesian company, in compliance with the provisions of the tax laws.

How is the PPh Pasal 26 applied in the case of foreign dividends?

In the case of foreign dividends, the tax rate can be 20% on the gross income, but this may be reduced to lower rates based on the applicable P3B. For instance, the tax rate for UK-based companies can vary between 8%, 10%, or 15%, depending on the ownership percentage and specific conditions.