Jakarta – Finance Minister Sri Mulyani Indrawati released tax incentives starting with income tax (PPh) Article 21, 22, until 25. The taxes are borne by the government for 6 months after launch, which is planned for next April.
Article 21 is a tax on income in the form of salaries, wages, honorarium, benefits and other payments in whatever name and form in connection with work or position, services and activities carried out by individuals who are domestic tax subjects.
“Yes, basically it was announced various fiscal stimulus packages consisting of a number of things that I have previously said, including the Income Tax Article 21 that will be borne by the government for industry,” he said at the Office of the Coordinating Ministry for Economic Affairs, Central Jakarta, Wednesday (11/03/2020).
“All these packages, the Coordinating Minister for Economic Affairs, hopes to do this for a period of 6 months,” he added.
Coordinating Minister for the Economy Airlangga Hartarto explained the incentive would be given for 6 months. After that, its effectiveness will be re-evaluated.
“So, as soon as launched, later in 6 months we will review again what effect it will have,” he added.
This incentive is given in order to maintain people’s purchasing power amid the onslaught of the Coronavirus (COVID-19). The economy is expected to be re-activated by the hope that the velocity of money in society can return fast.
Based on the Director General of Taxes Regulation No. PER-32 / PJ / 2015, PPh 21 is a tax on income in the form of salaries, honorarium wages, benefits and other payments in whatever name and form in connection with work or position, services and activities carried out by individuals as tax subjects.
According to the Income Tax Law (PPh) Number 36/2008, Article 22 of Income Tax (Income Tax Article 22) is a form of withholding or collecting tax carried out by one party against taxpayers and is related to goods trading activities.
While PPh Article 25 is a taxpayer both individuals and entities that have business activities are required to pay income tax installments every month.