AK24_05 INCOME TAX ARTICLE 21

Income Tax Article 21 is a tax deduction on income in connection with work, services, or activities in any name and in any form received or obtained by domestic individual Taxpayers that must be carried out by employers, government treasurers, pension funds, agencies, companies, and activity organizers. Tax on income in the form of salaries, wages, honorariums, allowances, and other payments in any name and in any form in connection with work, services, and activities carried out by domestic individual Tax Subjects. Adjustment of the Income Tax Article 21 withholding rate in connection with work, services, or activities received or obtained by individual Taxpayers. Furthermore, in order to encourage the level of Taxpayer compliance in fulfilling the obligation to withhold Income Tax Article 21, it is necessary to provide technical convenience for calculating and administering the withholding of Income Tax Article 21. Determination of the effective rate of withholding Income Tax Article 21 is carried out by taking into account the existence of a reduction in gross income in the form of job costs or pension costs, pension contributions, and Non-Taxable Income. The application of this effective rate will provide convenience and simplification of deductions for Taxpayers.
The Textbook discusses Income Tax Article 21 based on applicable Government Regulations, both from income tax in general,
subjects and objects of income tax article 21, deductions, tax payments owed, and reporting of income tax returns article 21.
With the presentation pattern of the material written in this textbook, it is expected that students can analyze, classify and perform calculations related to Income Tax Article 21 according to the needs of the entity.
Keywords: Tax Accounting, Income Tax Article 21