Notary Service Tax, Check the Provisions and How to Calculate!

Notary is one of the professions that offer deed-making services in Indonesia. Because it is categorized as a professional profession, someone who works as a notary also pays taxes to the state.

However, how is the correct calculation of notary tax? Let’s find out more information in the following article!

Overview of Notary Services

In simple terms, a notary is a public official authorized to make authentic deeds of all acts, agreements, and provisions required by laws and regulations and/or desired by interested parties.

The form of the notary profession varies depending on the legal system. In Indonesia, the existing type of notary is a civil law notary who serves the interests of the general public and receives honoraria from the general public.

This profession works to provide services for making sale and purchase deeds, grant deeds and grant binding deeds for land and / or buildings, waqf deeds, business establishment deeds, sale and purchase agreements, heirship certificates, and so on.

Then, How is Notary Service Tax Calculated?

Based on the Director General of Taxes regulation number PER-16/PJ/2016, notary is a profession that is classified as an expert so that it is included in the group of income recipients in connection with service work, not as an employee or employee.

Based on this explanation, the notary profession is subject to income tax article 21 (PPh article 21).

The calculation of Income Tax Article 21 for notaries refers to Taxation Law No. 36 of 2008, especially regarding taxable income rates, which are explained in article 17 paragraph (1).

In addition, the calculation of notary tax withholding also refers to DGT Regulation No PER-16/PJ/2016 concerning Procedures for Reporting Income Tax Article 21, and PMK No 101/PMK.O1O/2016 concerning the Rate of Non-Taxable Income.

Example of How to Calculate Notary Service Tax Rate

Because they offer services, notaries can work for various parties, and can work alone or under a business. He can also work on an ongoing basis or once in a period of time.

Below, we will discuss the tax calculation of a self-employed notary.

Notary Income Tax Calculation with Continuous Income

• Income Tax 21 Notary with Income from More than One Employer

If a notary has continuous income and has income from more than one employer, the formula used to calculate Income Tax 21 is as follows: (Gross income X 50%) X Article 17 Rate

Example:

Ali worked as a notary for three companies during July-September 2023. The following is the amount of payment he received:

From the income data, the calculation of Ali’s Income Tax 21 is as follows:

Based on this calculation, the total amount of Ali’s Income Tax 21 rate is IDR 10 million.

• Income Tax 21 for Notary with Income from Only One Employer

In addition to working with multiple parties, a notary may also work for just one party and have continuous income from that party. If this is the case, the notary can apply for a reduction in taxable income in the form of a non-taxable income allowance (PTKP).

The PTKP reduction rate applicable in Indonesia is IDR 54 million, based on the Minister of Finance Regulation (PMK) Number 101/PMK.010/2016 concerning the adjustment of the amount of non-taxable income. If the notary is married or has dependents of blood family members, there will be an additional Rp4.5 million.

Then, the formula for calculating notary tax is as follows: ((Gross Income X 50%) – PTKP) x Rate of Article 17.

Example:

During January-December 2023, a notary named Dinda worked for the company PT Jaya Abadi. She worked to make various deeds needed by the company and did not work for other companies. Her income during the period she worked for PT Jaya Abadi was:

Dinda is unmarried and has no dependent blood family members. She also has an NPWP. Therefore, her income tax calculation is:

Next, let’s calculate the amount of income tax that Dinda has to pay with the formula above:

With this calculation, Dinda’s notarial tax to be paid is IDR 13,262,500.

Calculation of Income Tax 21 for Notary with Discontinuous Income

There was a time when notaries had unsustainable income. For example, notary Mirda receives a request to make authentic deeds for PT Terang Benderang which is forming a new subsidiary.

For these services, notary Mirda received a fee of Rp35 million. Mirda has registered as a taxpayer and has an NPWP. So, the formula for calculating the notary’s non-continuous income tax is:

(Gross Income x 50%) x Article 17 Rate

(IDR35 million x 50%) x 5% = IDR8.75 million

Therefore, the income tax rate that Mirda’s notary must pay is Rp8,750,000.

KH Contact

This is the explanation of notary service tax. Now, of course KH Friend has a better understanding of the provisions and how to calculate it?

The process of calculating, reporting, and paying taxes is now easier thanks to Contract Law.

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