Final Income Tax: Implementation Instructions of Government Regulation No. 23/2018 – Government through Directorate General of Tax to issue implementation instructions of Government Regulation No. 23/2018 regarding Final Income Tax (PPh Final). Although there was a previous provision stated in the Ministry of Finance Regulation No. 99/2018, Directorate General of Tax has given an explanation, affirmation, and implementation on several provisions on Government Regulation No. 23/2019, the implementation of this instruction is also mention on Circular Letter No. SE-46/PJ/2020.
The affirmation includes information on how to submit a notification for taxpayers who choose to be subjected for income tax based on general provision and there is also the income tax treatment for a certain corporate taxpayer in the form of a limited partnership (CV) or a firm, this Government’s step confirms and details a certain provision related to a taxpayer and type of income tax that is subjected to Final Income Tax (PPh Final) based on Government Regulation No. 23/2018.
A provision related to compensation for the loss of taxpayer who receives an income that is subjected to income tax based on Government Regulation No. 23/2018 also mentions on this confirmation circular because this detail has not been arranged on Government Regulation No. 23/2018 and Ministry of Finance Regulation No. 99/2018.
On this confirmation circular also explains a provision about income tax treatment to a corporate taxpayer such as a bank, people’s credit bank, loan cooperative, micro-financial institution, lending institution, and mortgage institution.
Other confirmation also mentions about the obligations to have a Tax ID (NPWP), deposit method of income tax object transaction treatment based on Government Regulation No. 23/2018 who has been deducted based on the income tax general provision from other parties. There is also another explanation about the treatment of final income tax based on Government Regulation No. 23/2018 who has been deducted or self-deposit for a taxpayer who has been given a cancellation letter and/or revocation statement letter.
This implementation also details the calculation provisions of income tax article 25 installment for a taxpayer who has an income subject to income tax based on Government Regulation No. 23/2018 and also receives an income that subjects to income tax based on other income tax general provisions.
The enactment of this circular letter simultaneously revokes Circular Letter No. SE-42/PJ/2013 and SE-32/PJ/204 concerning the implementation confirmation of Government Regulation No. 46/2013, while this circular letter is stipulated on 18 August 2020.
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