ARTICLE 21 INCOME TAX WHICH IS BORNE BY GOVERNMENT

ARTICLE 21 INCOME TAX WHICH IS BORNE BY GOVERNMENT

(GOVERNMENT REGULATION NUMBER 45 YEAR 1994)

I. Regular Income Which is Financed By The State or Local Budget

Income received by :

1. State officers in form of salaries, allowances and other fixed remuneration;

2. Civil Servants and members of Armed Forces in form of salaries and other allowances connected with such above salaries;

3. Pensioners including widow, divorced man, and/ or their children in form of pension payment and other fixed allowances connected with such above pension;

which is financed by the state or local budget, the Article 21 income tax which is payable is borne by Government.

II. Irregular Income Which is Financed By The State or Local Budget

Income received by State Officers, Civil Servants, members of Armed Forces and Pensioners in form of honorarium and other irregular remuneration in whatever name which is financed by the state or local budget is withheld under Article 21 income tax by State Treasurers with the amount of 15% final except if paid to the following recipients:

1. Civil Servants who have class of II/d and below;

2. Members of Armed Forces who have ranks of second lieutenant and below.
III. Income Other Than Income is Financed By The State of Local Budget

1. For State Officers, Civil Servants, members of Armed Forces and Pensioners including widow, divorced-man and/or their children receiving and earning other income other than income financed by the state or local budget, the said income plus the income which is financed by the state or local budget shall be reported in his/her annual income tax return.

2. Article 21 Income tax which is borne by Government shall be credit-able with Income tax which is payable on all income reported in the annual income tax return.

IV. Withholding Agent of Article 21Income Tax

Withholders of Article 21Income tax are as follows:

1. State Treasurers;

2. Treasurers of Armed Forces;

3. State owned limited company of Civil Servant Insured Savings (PT Persero Taspen)

4. Members of Armed Forces Insurance (ASABRI)

V. The Obligation of Withholding Agent of Income Tax Article 21

1. On Regular Income Which is Financed By The State or Local Budget

a. calculating the Article 21 Income tax due which is borne by Government;

b. inserting Article 21 Income tax in the list of wages, pension payment and other payments connected with compensation to employees;

c. reporting Article 21 income tax being withheld to district tax office not later than 20 th day of the ensuing month.

2. On Irregular Income Which Is Financed By The State or Local Budget

a. withholding Article 21 income tax with the amount of 15% final of the gross amount;

b. giving the withholding Article 21 income tax receipt to recipients;

c. deposit of Article 21 income tax being withheld to a designated bank or post and giro office with the use of tax payment slip not later than 10 th day of the ensuing month;

d. reporting Article 21 income tax being withheld and deposited to district tax office not later than 20 day of the ensuing month