From Income Tax to VAT, these are the tax aspects that must be understood

Jakarta, Ideatax -- The tax aspect is unavoidable in the business world, and applies to both individuals and companies as taxpayers. In this activity, companies will be subject to two main types of taxes, namely Income Tax (PPh) and Value Added Tax (VAT).

 

Understanding these aspects is very important, because this is a form of compliance and also a strategy for managing finances and taxes effectively. So that way, the company can avoid potential legal problems that could arise in the future.

 

So, what aspects of taxation should you know? Let's explore the following explanation to find the answer!

 

Tax Aspects that Must Be Understood

In order to ensure tax compliance, it is important for taxpayers, both individuals and business entities, to have a strong understanding of several tax aspects which include:

 

1. Register yourself as a taxpayer

The first step that must be taken is to register as a taxpayer to obtain a Taxpayer Identification Number (NPWP). For business entities that have met subjective and objective requirements, there is an obligation to report Tax Returns (SPT) periodically, either monthly or annually.

2. Analyze Business Type

Additionally, it is important to understand that each type of business has different tax implications. Therefore, business actors need to know the business model they are running. This includes understanding whether income is final or not, as well as other relevant aspects.

3. Carrying out Tax Procedures

The next step is to calculate, deposit and report the Periodic SPT or Annual SPT in accordance with the relevant tax obligations. For example, this includes payment and reporting of SPT PPh 21 for income tax deductions received by employees, or VAT reporting, and so on.

4. Pay attention to the amount of gross income

Apart from that, business people also need to pay attention to the amount of gross income earned from the business they run. If the gross income is more than IDR 4.8 billion, then the company must be registered as a Taxable Entrepreneur (PKP).

 

This means that they have the responsibility to collect, calculate and remit Value Added Tax (VAT). However, if the gross income is less than or equal to IDR 4.8 billion, the taxpayer can choose not to be registered as a PKP.

 

In running a business, a strong understanding of tax aspects is not only important for compliance, but also to increase the effectiveness of financial management. Do you feel you need more information regarding tax matters? If yes, Ideatax is here as a trusted partner who is ready to provide the best solution for your tax needs.

 

What are you waiting for?

Contact us immediately, and let's optimize your tax strategy together to achieve better financial stability!