Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Robert Sidauruk
Many SME businesses are concerned about increased tax payment obligations under new income tax regulations. The Government is now imposing a 1% income tax on individuals and business entities with annual gross revenues up to IDR 4.8 billion. This threshold covers most businesses operating in the small-medium industry (SMI) category .
This new income tax policy is regulated under Government Regulation No. 46 of 2013 on Income Tax for Certain Gross Business Revenues (Regulation), which comes into effect on 1 July 2013.
Kismantoro Petrus, Public Relations of Directorate General of Tax (Dirjen), said that the Regulation should not be considered as income tax policy for SMI. He asserted that the new tax tariff applies to all industries that fall under the categories specified in the Regulation regardless of level.
Petrus explained that the Regulation does not apply to street vendors, entities that do not have full scale commercial operations, and businesses that generate gross income of more than IDR 4.8 million during their first year of doing business.
“The Regulation excludes businesses that use prefabricated and temporary equipment for their activities. It also excludes businesses that sell goods in public places that are not intended to be a place of business,” Kismantoro added.
Further, Kismantoro explained that his institution has a discretion to exclude industries that should not betaxed even if they fall within the Regulation’s ambit.
“We will not impose the tax of 1% on small food vendors, however if the operations are deemed to be relatively large, the Regulation will apply,” Kismantoro informed.
On a different occasion, Goro Ekanto, Head of Sub-Directorate of Income Tax Withholding at Dirjen, said that franchises and online shops are obliged to comply with the Regulation if they have many branches.
Ekanto added that franchises and online shops that have a considerable number of branches do not fall under the Regulation and must comply with the regular income tax tariff sets out under Article 17 of Law No. 7 of 1983 on Income Tax.
Ekanto, however, did not elaborate on the thresholds as to how many branches may be owned by a franchise or online shop to be excluded from the new income tax..
(hot/kc)
Fitri Novia Heriani, Robert Sidauruk
Many SME businesses are concerned about increased tax payment obligations under new income tax regulations. The Government is now imposing a 1% income tax on individuals and business entities with annual gross revenues up to IDR 4.8 billion. This threshold covers most businesses operating in the small-medium industry (SMI) category .
This new income tax policy is regulated under Government Regulation No. 46 of 2013 on Income Tax for Certain Gross Business Revenues (Regulation), which comes into effect on 1 July 2013.
Kismantoro Petrus, Public Relations of Directorate General of Tax (Dirjen), said that the Regulation should not be considered as income tax policy for SMI. He asserted that the new tax tariff applies to all industries that fall under the categories specified in the Regulation regardless of level.
Petrus explained that the Regulation does not apply to street vendors, entities that do not have full scale commercial operations, and businesses that generate gross income of more than IDR 4.8 million during their first year of doing business.
“The Regulation excludes businesses that use prefabricated and temporary equipment for their activities. It also excludes businesses that sell goods in public places that are not intended to be a place of business,” Kismantoro added.
Further, Kismantoro explained that his institution has a discretion to exclude industries that should not betaxed even if they fall within the Regulation’s ambit.
“We will not impose the tax of 1% on small food vendors, however if the operations are deemed to be relatively large, the Regulation will apply,” Kismantoro informed.
On a different occasion, Goro Ekanto, Head of Sub-Directorate of Income Tax Withholding at Dirjen, said that franchises and online shops are obliged to comply with the Regulation if they have many branches.
Ekanto added that franchises and online shops that have a considerable number of branches do not fall under the Regulation and must comply with the regular income tax tariff sets out under Article 17 of Law No. 7 of 1983 on Income Tax.
Ekanto, however, did not elaborate on the thresholds as to how many branches may be owned by a franchise or online shop to be excluded from the new income tax..
(hot/kc)