These are the Types of Taxation that Companies Must Pay

These are the Types of Taxation that Companies Must Pay

PPN - 13 Nov, 2023 11:11 WIB

Jakarta, Ideatax -- Tax is a financial obligation that must be fulfilled by every company. In fact, there are regulations regarding the type of corporate taxation that must be provided. This type of tax is included in the direct tax category, which means that payments need to be made by the taxpayer himself and must be measured periodically.

 

In addition, companies must also understand that these types of taxation may vary by region or country, so careful tax planning is essential to minimize the tax burden that must be paid. This can also have a positive impact on company finances and make a better contribution to the overall economy.

 

So, what are these types of taxes? The answer is in the following discussion.

 

Types of Taxation that Companies Must Pay

Every company is required to pay various types of taxes which play a role in supporting development and community services. The following are the types of taxes that companies must pay, including:

 

1. Income Tax Article 4 Paragraph (2)

Income Tax or PPh Article 4 Paragraph (2) is a final tax imposed on the type of income received by the taxpayer, and cannot be offset by other income taxes.

2. Income Tax Article 15

Furthermore, PPh Article 15 is a type of tax imposed on income from certain types of companies, including foreign insurance and international companies.

3. Income Tax Article 21

PPh Article 21 is a special tax paid by employees through the company. Usually charged for income such as wages, salaries, honoraria, allowances, and the like.

4. Income Tax Article 22

The provisions in this tax article only apply to companies involved in trade and import-export.

5. Income Tax Article 23

Then, PPh Article 23 is corporate taxation on income from services, capital, gifts, dividends, royalties, awards and consulting services.

6. Income Tax Article 25

This is a tax installment that must be paid by the company for the tax owed in the previous year's Annual Corporate Income Tax Return.

7. Income Tax Article 26

Meanwhile, PPh Article 26 regulates taxes for foreign taxpayers from income in Indonesia. This applies in particular to income other than permanent business in Indonesia.

8. Income Tax Article 29

Represents underpayment of tax in the Annual Income Tax Return. This can also be in the form of the remaining tax owed in the tax year reduced by tax credits.

9.VAT

Value Added Tax (VAT) is a tax imposed on sales and purchase transactions of taxable goods or services. This includes hotel tax and restaurant tax.

 

As previously explained, the nine points above describe various types of corporate taxation which have an important role in your financial and operational aspects. Understanding the types of corporate taxes that must be paid is a very important first step in managing your business taxes.

 

If you would like more in-depth guidance or require consultation regarding tax matters, do not hesitate to contact Ideatax. Our team of professional tax consultants is ready to provide the right advice and help optimize your company's tax obligations.

 

You can visit our official website at https://ideatax.id/.

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