Article 22 Income Tax
I. DEFINITION
Article 22 Income Tax is income tax that is withheld by :
1. Treasurers of Central State or District government, institutions or government body and other bodies in connection with the transfer of goods.
2. Certain bodies, whether government or private bodies in respect of import or other business activities.
II. WITHHOLDING AGENT OF ARTICLE 22 INCOME TAX
1. The Foreign Exchange Bank and Directorate General of Customs and Excise, on the import of goods;
2. Directorate General of Budgeting, The State Treasurers of the Central or Local Government, state or local owned enterprises, which have made payment on the purchase of goods financed by the state or local budget;
3. Business bodies operating in the following certain industries namely, cement industry, cigarette industry, paper industry, steel industry and automotive industry, which are appointed by Head of District Tax Office on the sale of their products in domestic market;
4. Pertamina and business bodies other than Pertamina operating in the field of fuel namely premix and gas, on the sale of their products to their distributors and/or agent;
5. The National Logistics Agency (Bulog) on the delivery of granulated sugar and flour powder to their distributors and/or agents.
III. THE AMOUNT OF THE COLLECTION OF ARTICLE 22 INCOME TAX SHALL BE DETERMINED AS FOLLOWS:
1. On import :
a. Using the Import Identification Number (API), the amount of tax collection is two and half percent (2,5%) of the import value;
b. Not using API, the amount tax collection is seven and half percent (7,5%) of the import value;
c. Which is not controlled, amounting is seven and half percent (7,5%) of the auction sale price.
Note:
The Import value is the value in the form of money which becomes the basis of computation of the import duty, i.e. Cost Insurance and Freight (CIF) plus the import duty and other levies which are assessed pursuant to the provisions of the customs legal regulations in the import field;
2. On the purchase of goods which are funded by the State or local Budget, it shall amount of one half percent (1,5%) of the purchase price;
3. On the sale of products made by business bodies in the following sectors :
n
Cement industry is 0.25% of the tax base of value added tax ;n
Cigarette industry is 0.1% of the base price for excise (harga bandrol) as final tax;n
Paper industry is 0.1% of the tax base of Value Added Tax;n
Steel industry is 0.3% of the tax base of Value Added Tax;n
Automotive industry is 0.45% of the tax base of Value Added Tax;appointed by Head of District Tax Office on the sales of their products in the domestic market.
4. On the sales of Pertamina products and business bodies other than Pertamina operating in the sector of gasoline in the kind of premix and gas to their distributor and/or agent:
·
Premium for private gas station is 0.3% of sales or Rp.2,100.00/KL, and for Pertamina gas station is 0.25% of sales or Rp. 1,750.00/1000 ltr;·
Diesel gasoline for private gas station is 0.3% of the sales or Rp. 1,140.00/1000 ltr and for Pertamina gas station is 0.25% of the sales or Rp. 950.00/1000ltr;·
Premix for private gas station is 0.3% of sales and for Pertamina gas station is 0.25% of sales;·
Kerosene is 0.3% of sales or Rp. 912.00/1000 ltr;·
LPG is 0.3% of sales or Rp. 2,250.00/1000 ltr;·
Lubricating oil is 0.3% of sales.Note :
Article 22 Income Tax on the sales of Pertamina and other companies’ products in the field of gasoline on the kind of premix and gas is final tax.
5. On the transfer of goods is made by Logistic Matter Body (Bulog) in form of:
a. Sugar :
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Distributor is Rp. 380.00/100Kgs;n
Wholesaler is Rp. 270.00/100Kgs;n
Other buyers is Rp. 650.00/100Kgs.b. Flour powder :
n
Distributor is Rp. 53.00/box;n
wholesaler is Rp. 38.00/box;n
Other buyers is Rp. 91.00/box.Note :
Article 22 Income Tax on the transfer of sugar and flour powder by Bulog is final tax.
IV. EXCEPTION FROM WITHHOLDING TAX OF ARTICLE 22 INCOME TAX
Exemption from the collection of Article 22 Income Tax are the following:
1. The import of goods and/or delivery of goods pursuant to the provisions of legal regulations shall not be subject to Income Tax;
2. The import of goods which are exempt from import duty are as follows:
a. goods imported to the Bonded Zones and Entrepot Production for Export Purposes pursuant to the prevailing legal regulation;
b. goods as mentioned in Article 6 and Article 7 of Government Regulation Number 6 Year 1969 concerning the Import Duty (see also) Government Regulation Number 2 Year 1973;
c. the shipment of gift;
d. for scientific purposes.
3. Payment on the delivery of goods (not constituting portions of the entire amount) which covers an amount less than five hundred thousand rupiahs (Rp. 500,000.00);
4. Payment for the purchase of oil for fuel, electricity, gas, drinking water (PDAM), mailing items, and telephone.
V. THE TIMING OF TAX DUE AND PAYMENT/COLLECTION OF ARTICLE 22 INCOME TAX
1. Article 22 Income Tax on import shall be due and settled simultaneously at the time of the Import Duty is paid.
In case of payment of the import duty is delayed or exemption, the Article 22 Income Tax shall be due and settled at the time of the Import Documents (PIUD) are finalized.
2. Article 22 Income Tax on the purchase of goods by Directorate General Of Budgeting, The Treasurers of the Central or Local Government, state or local owned enterprises shall be due and collected at each payment made.
3. Article 22 Income Tax on the sale of domestic products by a trade enterprise operating in the cement industry field, cigarette industry, paper industry, steel industry, and automotive industry which is appointed by the Head of the Tax Service Office shall be collected at the time of sale.
4. Article 22 Income Tax on the sale of products by Pertamina and trading enterprises other than other Pertamina operating in the field of fuel in the form of premix and gas shall be collected at the time of issuance of the delivery order.
5. Article 22 Income Tax on the delivery of granulated sugar and flour powder to distributor and/or agent by the National Logistics Agency (Bulog) shal>
Transfer interrupted!
suance of the delivery order.VI. THE PROCEDURES OF COLLECTION, PAYMENT AND REPORTING OF THE ARTICLE 22 INCOME TAX
1. On import
a. Import is carried out with using the assessment report issued by Directorate General of Custom and Excise (LKP)
Article 22 Income Tax is deposited by the importer to the foreign exchange bank by using Tax Payment Slip as the tax collection receipt;
b. Import is carried out without using LKP
Article 22 Income Tax is collected and deposited by Directorate General of Customs and Excise.
Directorate General Of Customs and Excise is required to issue the receipt of Article 22 Income Tax Collection attached 3 (three) copies as follows:
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First copy is for the buyer;n
Second copy is to be submitted to the Directorate General of Taxes as attachment to the monthly report.n
Third copy is for the files of the relevant tax collector.Directorate General of Customs and Excise has to pay the tax collection on import one day after tax collection to the post and giro office or designated banks, and has to report its collection to the District Tax Office every week not later than seven days after the end of the date of deposit.
2. Directorate General of Budgeting, The Treasurers of the Central or Local Government, state or local owned enterprises have to collect and deposit the Article 22 Income Tax collection to the Post and Giro Office or designated banks, on the same day with the payment made, by using tax payment slip (SSP) that was filled by and on behalf of the name of their clients and are signed by the said treasurers. Tax Payment Slip is valid as the receipt of tax collection. The report has to be sent not later than fourteen days after the end of the monthly tax.
3. Business enterprises operating in the fields of the cement industry, cigarette industry, paper industry, steel industry, and automotive industry which are appointed by the Head of the District Tax Office have to collect Article 22 Income Tax on the sales of their products in domestic market and have to issue the receipts of Article 22 collection attached 3 (three) copies as follows:
n
First copy is for the buyer;n
Second copy is to be submitted to the Directorate General of Taxes as attachment to the monthly report;n
Third copy is for the files of the relevant tax collector.The said enterprises are required to deposit Article 22 Income Tax collection collectively not later than 15th day of the ensuing month. The report is done by sending the monthly tax return not later than 20th day of the ensuing month.
4. Article 22 Income Tax from the transfer by Pertamina on its products, from the transfer of gasoline and gas by the companies other than Pertamina, and from the delivery of sugar, and flour powder by Bulog are collected with self payment by the tax payers themselves to the designated bank or Post and Giro Office before delivery orders are paid by using Tax Payment Slip as tax collection receipt.
Reporting is done by sending the monthly tax return not later than 20 days of the ensuing month.