Tax is an obligation for every entity in a country, be it an individual or a company/corporation. Paying taxes is a form of contribution and appreciation for the state because taxes will later be distributed for welfare programs and the prosperity of the people. As one of the taxpayers, companies in the form of PT, CV, and firm also benefit from the development. Therefore, companies are also taxpayers and are required to pay taxes.
Taxation has been regulated in Law Number 28 of 2007, namely the taxpayer’s contribution is to pay taxes to the state by the taxpayer’s body or person which is forced. KH pals should also know, besides being an obligation, taxes can also actually be one of the tools to increase company credibility.
What are the various or types of taxes that must be reported and paid by the company? Let’s see the information below.
Variety of Taxes for Companies
The number of transactions carried out by business actors, of course, also encourages tax reporting that needs to be done. The following is a detailed list of taxes that must be reported by the company.
Income Tax Article 21 (PPh 21)
Every company that has employees is subject to Income Tax 21 (PPh 21). This PPh 21 is a tax on income based on the work performed by the employee. Ph 21 is paid monthly. Usually, companies collect PPh 21 by deducting directly from the employee’s monthly salary.
Income Tax Article 22 (PPh 22)
Income tax article 22 will be imposed on companies that conduct trade/export-import activities. Income tax article 22 only applies to transactions where both parties benefit.
Income Tax Article 23 (PPh 23)
Companies are required to pay Income Tax 23 when making transactions with the following conditions:
- Royalty payments on certain works
- Share profit distribution (dividend)
- Payment of gifts, awards and bonuses
Payment for services such as management, legal consultants, financial consultants, engineering, etc. as stated in the Minister of Finance Regulation Number 141/PMK.03/2015.
Income Tax Article 26 (PPh 26)
When a company conducts transactions with foreign taxpayers, it will be subject to ITA 26. Transactions related to ITA 26 consist of employee salary payments, bonuses, allowances, royalties, dividends, services, pensions, or others in accordance with regulations.
Income Tax Article 29 (PPh 26)
The company will be subject to PPh 29 if the company’s annual payable tax value is greater than the total credit that has been deposited with the Tax Office. Hence, this tax is often referred to as income tax underpayment. PPh 29 is listed in the annual income tax return, so it must be paid first before reporting the income tax return to the Tax Office every April 30.
Value Added Tax (VAT)
VAT (value added tax) is a tax levied when goods are value-added as they move from producer to consumer.
When a company conducts a sales transaction of taxable goods/services, it must issue an invoice as valid proof of VAT collection. In addition, companies will be subject to 10% VAT when they conduct sales and import transactions, while 0% for exports.
Benefits of Companies Paying Taxes
After knowing the various kinds of taxes that companies need to report, it turns out that paying taxes on time has many benefits. Here are four benefits that companies get when paying taxes:
Make Business Look Professional
The benefits of paying taxes can make a company’s business look professional. When in front of clients and consumers if you have an NPWP (Taxpayer Identification Number), the company is considered to have its own credibility.
Why? Because, NPWP is one of the most important parts in the contract cooperation letter between clients and consumers. But on the contrary, if you don’t have an NPWP, the company can be underestimated by clients.
Getting a Loan is Easier
The benefit of paying taxes for companies is that when KH pals pay taxes on time, it will be easier to get loans from banks for business purposes.
With the NPWP card, the bank will consider and see the business that KH Friend runs as a professional businessman.
Contributing to the Country’s Economy
The purpose of paying taxes is indeed very influential for the country, because paying taxes indirectly participates in stabilizing the country’s economy.
In fact, conditions that are said to threaten the country’s economic sustainability, taxes can also be used as a tool for economic stability. Thus, the government has the application of policies in making and providing options for a taxpayer for companies.
Indicates Healthy Company Finances
Companies that have healthy finances will usually avoid paying taxes late. Penalties and interest on late tax payments are a drain on profits.
Companies that pay taxes on time indirectly indicate that the company has good finances. Conversely, companies that do not pay taxes indicate that their financial condition is not healthy. Seeing the many benefits of paying taxes on time, if you currently have a company, don’t forget to pay taxes.
KH Contact
For KH friends who currently have a company but still do not understand in calculating the taxes that need to be paid, determining the type of tax reported, can directly contact Kontrak Hukum. We provide financial and taxation services that can be a solution for KH Friend, more about these services can visit the following page https://kontrakhukum.com/keuangan-dan-pajak.
Through DiBA, KH pals can consult starting from taking care of company taxes, legality in business, brands, or if you want to consult regarding the business you have, you can directly contact Kontrak Hukum at the following link Tanya KH or through our Instagram social media @kontrakhukum. For more information about our other services, KH pals can also directly visit the page https://kontrakhukum.com/semua-layanan.
