Do you know how to calculate Income Tax (PPh) payable? Or maybe KH friends are still confused and don’t know what is payable income tax? As a taxpayer, it’s good for KH friends to start knowing various types of taxes and how to calculate them, one of which is this payable income tax. Then, what is meant by PPH payable and how to calculate it? Check out the full explanation below.
What is Income Tax Payable?
As we know, Income Tax (PPh) itself is a tax imposed on a body or individual for income received during one year. Meanwhile, payable income tax is a tax that must be paid by corporate taxpayers or personal taxpayers to the state. All types of payable taxes, including income tax payable, are not the same as tax debt. This can be seen from the legal basis, the term payable tax itself can be found in the following tax regulations:
- Law (UU) No. 28 Year 2007 on KUPUU regulates the general provisions and procedures of taxation (KUP). Article 10 of this Law stipulates that tax payable is tax that must be paid at a certain time in the tax period, tax year, or part of the tax year.
- Law No. 36 Year 2008 on Income Tax is a newer version of Law No. 7 Year 1983 on Income Tax. Article 17 of this law contains income tax rates for individuals and corporations. Taxpayers need this information to calculate the tax payable from taxable income.
- PER-32/PJ/2015Directorate General of Taxes Regulation No. 32/2015 also regulates income tax rates, with a focus on personal income tax. This regulation also differentiates the rates imposed on taxpayers who already have an NPWP and those who do not. You can find it in chapter VII article 20.
As stated above, income tax payable is a tax that must be paid by personal taxpayers and corporate taxpayers. Based on these two types, this article will explain each method that you can do to calculate the payable tax that must be paid, which is as follows:
Tax Payable for Personal Income Tax
The calculation of income tax payable for personal taxpayers is regulated in the Income Tax Law Article 17. In the law, the percentage of tax depends on the income of each individual who already has an NPWP with the following provisions:
- 5% on taxable income for income up to IDR 50 million per year
- 15% for taxable income of 50 million to 250 million rupiah per year
- 25% for taxable income of 250 million to 500 million rupiah per year
- 30% for taxable income above 500 million rupiah per year
Then, for individuals who do not have an NPWP will be taxed 20% higher than the tax rate above. For example, a private employee has a monthly taxable income of IDR7 million. Then in a year, the employee’s taxable income reaches Rp84 million. Then the calculation of income tax payable is as follows: 5% x 50,000,000 = 2,500,000 15% x (84,000,000 – 50,000,000) = 5,100,000 So, the income tax payable for the employee for a year is IDR 2.5 million + IDR 5.1 million = IDR 7.6 million.
Tax Payable for Corporate Income Tax
The calculation of corporate income tax payable is based on the amount of turnover obtained per year. Corporate taxpayers who have gross income of up to IDR4.8 billion per year are subject to the final income tax rate of 0.5% multiplied by all gross income from business. Meanwhile, business entities that have gross revenues of more than IDR 50 billion per year are subject to a single tax rate of 25% multiplied by the net profit before tax. However, through Government Regulation (PP) No. 30 issued in 2020, the corporate income tax rate for domestic companies in the form of a limited liability company (Public Company / Tbk), the income tax rate is reduced to 22% in 2020-2021, and 20% in 2022, and there is an additional 3% reduction to 17% in 2022 with applicable terms and conditions. For example, PT Maju Sinar Jaya is a corporate taxpayer that has a turnover or gross turnover in 2022 of IDR55 billion and there is no fiscal correction. Because PT Maju Sinar Jaya is not a public company (Tbk), it does not take advantage of the 20% reduction in the corporate income tax rate this year, then the income tax payable of PT Maju Sinar Jaya is as follows: = Corporate income tax rate x Total turnover = 25% x Rp55 billion = Rp13,750,000,000 That is the explanation of income tax payable and how to calculate it. Hopefully it can provide you with knowledge related to taxation! Both for individuals and business entities.
KH Contact
Well, for those of you who currently still do not understand the tax provisions and do not want to be complicated in taking care of tax calculations and reporting, as well as the administration of other tax services, you can immediately contact Kontrak Hukum. Kontrak Hukum provides Digital Business Assistant (DiBA) services that can help you to consult corporate tax matters, take care of business legality, register and check brands, and other business services. KH friends can enter the following page https://kontrakhukum.com/digital-assistant/ to find out more about Kontrak Hukum’s DiBA service. Or you can also contact Kontrak Hukum through the following link Ask KH, or send a Direct Message (DM) on our Instagram social media @kontrakhukum.
