Know your tax payment process

Know your tax payment process. Paying taxes is one of the stages in the cycle of the rights and obligations of taxpayers (WP). In a self-assessment system, WP shall conduct its own calculation, payment, and reporting of taxes owed.
Tax payment mechanisms can be classified into 4 (four) types: (1) Self Pay tax due, (2) pay income tax through withholding and collection by the other party, (3) pay VAT to the seller or the service provider or by the party appointed by the government, and (4) payment of other taxes.

The first, pay their own taxes that are owed include: (1) Repayment of Income Tax (Income Tax) per month (Tax Article 25), and (2) Payment of income tax deficiency for a year (Tax Article 29).

The definition of income tax installment payments every month (PPh Article 25) Income tax is a payment in installments. It is intended to ease the burden on tax payers to pay the tax payable within one year. WP obligated to repay taxes that would be payable at the end of the year with their own installments to pay the tax every month.

Specifically, for the WP Personal income in the business and professional services, income tax installment payments Article 25 is divided into two, namely: (1) Article 25 of the Income Tax Installment WP Specific Individual Entrepreneur (OPPT), and (2) Instalments Income Tax Article 25 In addition to the WP Individual Specific Entrepreneur (OPPT).

What is meant by WP WP Personal OPPT is conducting the sale of goods, both wholesale and retail and business service delivery, which has one or more places of business, including a business has a different residence. Installment to Income Tax Article 25 WP OPPT is: 0.75% x turnover of business (turnover) per month from each place of business.

While Article 25 of the Income Tax installments WP Specific Individual Entrepreneur addition (OPSPT), the individual conducting business without a place of business such as self-employed or as an employee, then the income tax installments of his Article 25 is: Taxable Income (PKP) SPT previous tax year x Rates of Income Tax Article 17 paragraph (1) letter a Income Tax Act (Income Tax Law is divided by 12 months.

As for WP Agency, the amount of the installment payment of Income Tax Article 25 payable obtained from PKP is multiplied by the tax rates set out in Article 17 paragraph (1) letter b of the Income Tax Act. Rates of Article 17 paragraph (1) letter b and (2a) of the Income Tax Act is 25%. Especially for WP Agency a year gross income up to Rp50.000.000.000, 00 (fifty billion dollars) in the form of tariff reductions granted facilities by 50% of the tariff Article 17 paragraph (1) letter b and (2a) of the Income Tax Act, which imposed on the taxable income from gross income up to Rp 4,800,000,000.00 (four billion, eight hundred million rupiahs).

Furthermore, for the payment of income tax deficiency for a year (PPh Article 29) carried out by the WP at the end of the tax year if the tax payable for a tax year is greater than the total amount of taxes paid themselves (installments Tax Article 25) and taxes withheld or collected the other party as a tax credit.

The second tax payment mechanism is to pay income tax through withholding and collection by the other party (Tax Article 4 (2), article 15, article 21, 22, and 23, as well as the Income Tax Article 26). Other parties here are: (1) The income, (2) The employer, or (3) The other party designated or established by the government. Then the third mechanism of tax payments is to pay VAT to the seller or the service provider or by the designated government. The VAT rate is 10% of the sale price or the replacement value or value of exports or the other.

And finally, is the mechanism of payment of other taxes. Includes: (1) Payment of the redemption by the UN Tax Due Notice (Marking) and (2) Payment of Stamp Duty.

For Jakarta and certain other areas, has been UN payments can be made using the ATM at certain banks. UN rates consist of two rates: (1) 1/1000 of the Tax Object Sales Value (NJOP) for the NJOP were less than Rp1.000.000.000, 00, and (2) 2/1000, of the Selling Value Attractions Tax (NJOP) for the NJOP were less than Rp1.000.000.000, 00.

Payment of stamp duty is used as the tax payment documents. Repayment is done by using the seal object in the form of paste or seal stamped paper or by other means such as using machine impression. Seals paste payable to mention the number of documents (receipts) above Rp250.000, 00 to 1,000,000, 00 is Rp3.000, 00. For documents that mention the amount above 1,000,000, 00 and letters of agreement payable seal paste Rp6.000, 00.

The four types of tax payment mechanism at the center, is the obligation to pay the tax payers. So what if the tax payers pay more? So WP can enjoy the excess Rights WP Paying Taxes. That WP has the right to recover the excess If tax due for the taxable year is less than the amount of the tax credit, or in other words paying tax paid or deducted or collected more than it should be due.

Refund of tax overpayment can be given within 12 (twelve) months from receipt of a complete petition. To qualify WP WP Obey, refund excess tax payments can be made at least 3 months and 1 month for income tax to VAT since the application is received. Keep in mind this was done without any refund checks.

WP can request refund overpaid taxes in two ways: (1) Through the Mail Notification (SPT), and (2) By sending a letter of request addressed to the Head of the LTO. If the Directorate General of Taxation (DGT) late return excess payments should be made, then the WP entitled to receive interest at 2% per month maximum period of 24 months.

Well, fair and easy right? So what are you waiting, pay your taxes correctly and on time. Proud to Pay Taxes!