Absence of Plan to Add New Tax Objects

Recently, there is circulation of the Draft Law (Bill) on Income Tax decreasing the rate of corporate income tax to 20% from 25% which is currently applicable in accordance with Law Number 7 Year 1983 regarding Income Tax as amended by Law Number 36 Year 2008. In addition to decreasing the rate of corporate income tax, the Bill adds 6 tax objects which are challenged by some parties.

The government indeed plans to decrease corporate income tax to 20%. However, there has been no plan to add the 6 new tax objects. Those new tax objects are among others insurance premium borne and paid by employers, contribution to health benefit, work-related accident benefit, and death benefit for workers borne and paid by employers, grant, heritage, as well as retained earnings not divided in the form of dividend and not invested in the real sector for 2 years.

However, according to the Director of Public Counseling, Services and Relations, Hestu Yoga Saksama, the substance of the circulating Bill is not true. Until now, there is no official Income Tax Bill to be conveyed to the community thus the community does not need to be concerned with the substance of the circulating Bill. The Ministry of Finance itself is still discussing the Bill.

 

 

 

 

 

Source: http://europe.legalcentric.com/content/view/141359

86/PMK.03/2020 Tax Incentives for Taxpayers Affected by Corona Virus Disease 2019 Pandemic
86/PMK.03/2020 Tax Incentives for Taxpayers Affected by Corona Virus Disease 2019 Pandemic

No Comment

Leave a Reply

Your email address will not be published. Required fields are marked *