Scholarships are gifts in the form of financial assistance given to individuals with the aim of being used for the continuation of the education pursued.
Basically, this scholarship has been excluded as an income tax object as stipulated in the Minister of Finance Regulation (PMK) No. 154 / PMK.03 / 2009 amendment to PMK No. 246 / PMK.03 / 2008.
And the expenditure on this scholarship can be used as a deduction from gross income (tax costs) as stipulated in article 6 of Law no. 36 of 2008.
This year the government has removed PMK No 154 / PMK.03 / 2009 and replaced it with an updated regulation, namely PMK 68 / PMK.03 / 2020.
Check out the following infographic to find out the points of changing the rules for the scholarship.
Credit Source: https://www.ortax.org/ortax/?mod=info&page=show&id=515&list=1