Published PMK, Natura and Enjoyment of Employees Must be Measured and Withheld with Income Tax
Jul 06, 2023 02:30:25 pm
Manhajul Islam, S. Ak - BATS Consulting
The employer or the giver of enjoyment in the form of in-kind
or pleasure is obliged to deduct income tax on the kind and benefits given to
employees.
The income tax deduction scheme for employees in kind
or benefits is carried out with the PPh 21 deduction mechanism which must be
carried out starting July 1, 2023.
Income tax withholding by employers or reimbursement
providers or rewards in kind and/or benefits by employers will be made at the
end of the month in which the transfer or transfer of rights to a
facility/enjoyment occurs.
While the range from January to June 2023, exempted
from the obligation to withhold PPh 21 because the PPh tax obligations are
determined using a self-assessment scheme.
"Replacement or compensation in connection with
work or services in kind and/or enjoyment received or obtained from January 1,
2023 to June 30, 2023 ... for the Income Tax payable must be calculated and
paid for himself and reported by the recipient in a Tax Return Income,” reads
Article 24 PMK 66/2023 quoted on Thursday (06/07).
This policy regarding income tax on in-kind/enjoyment
is based on the taxable-deductible concept, which means that if the object is
taxed at the employee level, then the object can be charged at the employer
level.
Provisions regarding reimbursement costs or
compensation given in kind/favors as a deduction from gross income are
effective from 1 January 2022 or the 2022 financial year of the employer
begins.
Simultaneously with the entry into force of this
provision, PMK 167/PMK.03/2018 concerning the Provision of Food and Beverages
for All Employees and Reimbursement or Rewards in the Form of Kinds and
Benefits in Certain Areas and Related to the Implementation of Work which can
be deducted from the Employers Gross Income is revoked and declared invalid.
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