Calculation of Individual PT Taxes – An individual company or better known as an individual PT is a business entity whose establishment is carried out by only one person, where the business is included in the category of Micro and Small Enterprises in accordance with Law no. 11 of 2020 Concerning Job Creation.

Below we inform you about individual PT taxes.

Definition of Tax

According to the Director General of Taxes, taxes are mandatory contributions to the state that are owed by individuals or entities that are coercive under the law, by not receiving direct compensation and being used for the needs of the state for the greatest prosperity of the people. Tax payment is a manifestation of state obligations and the participation of taxpayers to directly and jointly carry out tax obligations for state financing and national development. In accordance with the philosophy of the tax law, paying taxes is not only an obligation, but is the right of every citizen to participate in the form of participation in state financing and national development.

How much is the tax rate for an individual PT?

Individual Companies (PT) can use the Final Income Tax rate of 0.5%. This is regulated in the latest Government Regulation, namely Government Regulation Number 55 of 2022 which re-regulates the final income tax (PPh) policy of 0.5% for MSMEs.

The Final Income Tax rate of 0.5% can now be utilized by PT Individuals. The Final Income Tax rate is imposed on gross income (turnover) per month, which does not exceed IDR 4.8 billion in an accumulation of 1 tax year. If the taxpayer’s turnover later no longer exceeds IDR 4.8 billion in one tax year, then the Final Income Tax rate of 0.5% can still be imposed until the end of the taxpayer’s tax year ends.

The period for the imposition of Final Income Tax for Corporate Taxpayers in the form of individual companies established by 1 person is no later than 4 tax years.

Individual PT tax liability?

  1. Take VAT and PPnBM from Transactions
  2. Make VAT and PPnBM deposits
  3. Make Periodic VAT SPT Reports
  4. Compile Tax Invoices

Sanctions obtained If an individual company (PT) does not submit financial reports, sanctions will be imposed in the form of:

  1. Written warning;
  2. Termination of access rights to services; or
  3. Revocation of legal entity status.

An example of calculating individual PT taxes

Individual PTs Still Subject to Final Income Tax of 0.5 percent.

PT ZXCV was established in January 2021. Turnover during the year, the period January – December 2021 amounted to IDR 960,000,000. Then the corporate income tax payable is…..

0.5 percent x IDR 960,000,000 = IDR 4,800.00

Final PPh is paid per tax period based on the list of business circulation.

Conclusion

Such is the information regarding the Calculation of individual PT taxes.

Indoservice offers outsourcing services to calculate PPh rates, for individual PT income tax based on Indonesian regulations. At Indoservice, we have a dedicated team of professionals who will work with your Tax and Accounting for your business. You can count on us to provide the quality of service that best suits your needs.

Contact us at email: admin@indoservice.co.id or Call/Whatsapp +6281818811887 for more detailed information.

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    Summary
    Calculation of Individual PT Taxes
    Article Name
    Calculation of Individual PT Taxes
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    Individual Companies (PT) can use the Final Income Tax rate of 0.5%. This is regulated in the latest Government Regulation
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    Indoservice
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