Intro
Kemas is majoring in Accounting at Universitas Muhammadiyah Prof. Dr. Hamka, and is a financial analyst intern here at Bukit Vista. He has a license of Brevet A&B Tax Certification, and his experience with tax specialty brought him to learn more about Company’s Tax and what need to be Improved in the company.
Background
Employees Tax (PPh 21) is a type of corporate tax that employers are required to pay in Indonesia. It is a tax levied on the wages and salaries of employees who work in Indonesia. The amount of tax that employers are required to pay depends on the amount of wages and salaries that employees earn, as well as other factors such as the number of employees, the type of business, and other relevant factors.
Employees Tax (PPh 21) is imposed and collected by the government of Indonesia and must be paid by the employer on behalf of the employee. The employer is required to withhold a certain amount of the employee’s salary and deposit it with the government. This amount is then used to pay the employee’s tax liability.
Who is responsible for paying Employees Tax (PPh 21)?
The Company is responsible for paying Employees Tax (PPh 21) on behalf of the employee. Employers must withhold a certain amount of the employee’s salary and deposit it with the government. This amount is then used to pay the employee’s tax liability.
Employers are also responsible for submitting the necessary documents to the government in order to pay the tax. The documents required include the employee’s tax return, the employer’s tax return, and the tax payment slip. Additionally, employers are required to provide proof of withholding of Article 21 income tax to employees.
How much Employees Tax (PPh 21) do employees have to pay?
Employees Tax (PPh 21) is calculated based on a progressive rate. This means that the tax rate increases with the amount of wages and salaries that employees earn. The tax rate is also applied to a certain portion of the employee’s wages and salaries. Usually companies will deduct income directly to pay this tax. The results of this employee tax deduction must then be deposited to the government.
What are the penalties for not paying Employees Tax (PPh 21)?
If employers fail to pay Employees Tax (PPh 21), they can face severe penalties. These penalties include fines, back taxes, and even imprisonment.
How is Employees Tax (PPh 21) calculated?
The calculation of Employees Tax (PPh 21) is based on the Taxable Income (PTKP) of the employee. This PTKP is determined by the number of dependents that the employee has, as well as the employee’s marital status. Once the PTKP is determined, the tax rate is applied to the employee’s salary.
The tax rate for Employees Tax (PPh 21) varies depending on the amount of wages and salaries that employees earn. The tax rate can range from 0% to 30%. In this project we’re using Ortax PPh 21 Calculator to made us easier. (https://kalkulator.ortax.org/)
What are the benefits of Employees Tax (PPh 21) for employers?
There are several benefits of Employees Tax (PPh 21) for employers. First, it helps employers to comply with the tax laws of Indonesia and ensure that their employees are paying the correct amount of tax. Second, it helps employers to save money by making sure that they are not overpaying their employees’ taxes. Third, it helps employers to ensure that their employees are paying the correct amount of tax, which can help them avoid any penalties or sanctions imposed by the government.
Finally, Employees Tax (PPh 21) helps employers to ensure that their employees are paying their fair share of taxes, which can help to reduce the overall tax burden on employers. This can help to create a more equitable tax system in Indonesia and help to promote economic growth.
Implementation in Bukit Vista
Bukit Vista has grown very fast as a start-up company, as we know. As a Perusahaan Terbuka (PT. ), reporting and depositing Employees Tax is a vital responsibility. In order to report PPh 21 in the company, we created new guidelines and processes that makes the processes goes faster. The advantages obtained from implementing e-SPT for taxpayers are :
- Submission of SPT can be done quickly and safely, because the attachments are in the form of softcopy files
- The e-SPT application system organizes company tax data systematically and saves time
- Reducing SPT recording clerical work which consumes quite a lot of resources.
- E-SPT makes it easier for taxpayers to report their SPT, so that those concerned do not need to queue at the Tax Office
- Errors – calculation errors such as addition, subtraction, calculation of PTKP, calculation of tax payable, etc. will be minimized, so that the risk of rectifying the SPT due to these errors can be avoided
- Save time on the work of inputting transaction data carried out by staff. It will take longer if we input data using the excel or word.
- The risk of data security/security will be safer because reporting does not use hardcopy (especially SPT attachments), so that tax data is not known by other parties.
Based on the advantages mentioned above, of course the taxation process at Bukit Vista will be much more efficient.
Result and Impacts
The Finance Team in Bukit Vista is now responsible for reporting and calculating Employees Tax, there are several benefits of Employees Tax (PPh 21) for employers. As an employer, you’re always looking for ways to save money and stay in compliance with Indonesian tax laws. employees tax (pph 21) is an excellent way to do just that! not only will it make sure your employees are paying their taxes on time, but it can also help you avoid costly penalties and sanctions. plus, you’ll know that your employees are paying the right amount of tax, so you can rest assured that you’re not overpaying them.
Inspiring project right? We always appreciate our Vistans and Visterns, who have Inspired Delight and created an impact for our employee, guests, and partners. We value their talents and see them as a precious asset to our company.
Interested in joining us transform the tourism and hospitality industry?
Contact us at our careers page and see how you can make an impact here also